How to Think Profitably - a Trader’s Mindset

[Mr_Akbar]

Lots of folks bringing up great points! Good conversation about how emotions must be managed for trading, including emotions about winning and losing trades.

A few that I'd like to comment on specifically:

As a partake trader myself I find it difficult to stay discipline to my plan but after reading your post I think I'll try it out, the keeping a record part maybe that'll remind me of staying discipline. Also the volatility of the market is a major contributor as I tend to adjust at every little change i notice in price movement. Since I started trading I never cashout at my initial target cashout price. Is either I cashout few price late or earlier.

Couple things to unpack here. First, good luck starting your journal! Let me know if you have any questions. Your next comment on adjusting your trade plan is an important one. With new information over time, it can make sense to tweak your profit targets. However, until you're absolutely sure that you're not being swayed by FOMO or FUD, you should keep your targets pretty solid. Over time with your journaling you will be able to recognize trends and patters in your own behavior that you can use to improve yourself.

And of course there are a lot of factors why they lose or why they won.
Most of us lose due to being ignorant,doesn't read the chart only listen to those TA and so called pro-traders.

You hit the nail on the head there. Most traders, especially (but not only) new traders, don't have the education, the training, or the tools to consistently profit from trading. Voodoo Crypto doesn't do signals, we teach you to trade for yourself.

I just want to say something quickly about this your preamble and it is to disagree that a winning trader is not smarter. I believe in being smarter equips you with what it takes to be a winner because it opens you up to other techniques, information and other supporting knowledge to be better which can also include luck.

That's a valid dissent, but I would ask you this question: is it that the "smarter trader" is better at understanding the other techniques, processing the information, and understanding supporting knowledge, or does the "smarter trader" just know where to find better techniques, more relevant information, and more valuable supporting knowledge?

Inside trading is rampant in crypto, small timers never stood a chance.  Those insider whales are the only people pulling in consistent profits that they can live off of.

There's sometimes shady behavior in the marketplace, but if you understand how that behavior works, what the "tells" are, and how to safely navigate the waters when it's happening, you can still swim with the whales as a little minnow and thrive.

When we talk about traders mindset, I think 50% (by assumption) of trader's mindset is to make profit but I think such mindset is tantamount to getting a trader to record more losses than gains because the emotions and impatient would always interference But expert traders, I mean the tested and trusted see trading as a game that they want to try and predict its outcome and so they have more than average understanding and applies the techniques, this could be the reason they win because they have subdued the always winning mindset.

Profit is the motivation to play the game, no doubt about that, but you're right that for many traders the game of probability and psychology is a lot of fun!

A couple meta questions too that I want to transparently address.

This Voodoo Crypto site you speak of I see you're trying to promote it, are you the owner? Will still check it out though.

I am a trading coach with Voodoo Crypto, so it is in my best interest to promote the service. However, my primary motivation for sharing this post and the ones that will follow is to provide value to new and experienced traders. Some may eventually look up Voodoo Crypto and be interested in what they offer, but most probably won't and that's okay too.

OP has been promoting his group a few times across social media it seems. Found one exact same post in Reddit.

Aye, I did post this on Reddit a few days ago. My intention is to continue making posts like this on both because while there is overlap between the audiences, many people only look at one or the other.

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[Osarman]

Yes, the kind of mindset you have is very important as a trader. But one other you will have to know is that those with that kind of mindset are the most hard working. You don't just get what you want by being positive or having the mindset that you're going to win without putting in work towards winning.

For anyone to have that kind of mindset they already knows what it takes to achieve what they want,  so they are also going to work hard towards that and they also need the skills that are necessary to accomplish it, that's the truth. I'd also like to say you have a Good post.

[Bitcotalk]

This Voodoo Crypto site you speak of I see you're trying to promote it, are you the owner? Will still check it out though.

It's a discord group. The link is on the OP profile.

OP has been promoting his group a few times across social media it seems. Found one exact same post in Reddit.

I think he has just suggested the readers here if they want to get more guidance on the topic, they should check Voodoo crypto which is not bad. He talks about these trading journals could be explored on the internet as well which is an option for those who do not want to go for the one he prefers. And yes it is like if someone is pointing you at the right direction or showing you the area that needs to be explored in order to become a good trader.

[CryptoToxicAvenger]

I also read that to keep a journal for the trader is a must. It clearly shows your results and serves as a great way to correct your mistakes.

[Mr_Akbar]

I also read that to keep a journal for the trader is a must. It clearly shows your results and serves as a great way to correct your mistakes.

A regular review of one's trading journal is definitely important. Having your trades evaluated by other traders can be beneficial, too.

[Indrawan77]

It's a good guide, mindset and discipline are two most important things in trading, most of the people losing money because of lacking disciple or giving up in the middle of the trade after losing money, trading need knowledge, experience, discipline and correct mindset, losing money in trading is a usual things, making the wrong speculation is the lesson that need to learn, but dont give up and afraid to try new things

[playboy654]

What’s the difference between a winning trader and a losing trader? It’s not that one is smarter than the other, or that one is luckier than the other. Sure, maybe having the right tools and the best information helps, but what separates a winning trader from a losing trader is their mindset.

A mindset is how one perceives the world. It’s how a person absorbs the information around them, and chooses to either take action or not.

The most important mindset for a trader, new or experienced, is to consider decisions/trades/positions/investments through the lens of risk versus reward. A winning trader defines their risk and sets a target for their reward. There are lots of ways to do that, worthy of plenty Reddit posts on their own, but the critical learning is that the trader makes a plan based on solid logic, not emotion.

Once a plan is established, with a focus on risk:reward, the next piece of the mindset puzzle is sticking to the plan. This is accomplished through discipline. Only through discipline can you take your plan, and execute it over and over again so that you can measure it.

"If you can’t measure it, you can’t improve it." - Peter Drucker

The best way to measure your trading results is by keeping a trading journal. My personal journaling tool was built for Voodoo Crypto, but there are plenty of free ones if you google it. When looking for a journal or template, make sure to consider journaling both each individual trade as well as each trading session. Break down the numbers for every trade, and reflect on your performance and emotions for each session.

After the data has been analyzed and the journal reviewed, you make tweaks to your plan to attempt to maximize profitability. A winning trader understands that they don’t win every time, that losing trades is a fact of trading. However, they can answer whether they win more than they lose and have the stats to back it up.

If you want more hands on guidance and education check out Voodoo Crypto.

yes you are right good thoughts are very important for everyone to get the success in the life because if you are think like air experienced people then it will definitely give you to the good vibration in your mind set and the thoughts of yourself always going with the right direction.

[omonuyak]

Our mind set actually do affects the way we succeed in whatever we do and that is the reason why we should train ourselves to always have a positive mindset as a trader. Many traders lose money because of negative mindset and not only traders but every field of life.

[Hamphser]

Yes, the kind of mindset you have is very important as a trader. But one other you will have to know is that those with that kind of mindset are the most hard working. You don't just get what you want by being positive or having the mindset that you're going to win without putting in work towards winning.

For anyone to have that kind of mindset they already knows what it takes to achieve what they want,  so they are also going to work hard towards that and they also need the skills that are necessary to accomplish it, that's the truth. I'd also like to say you have a Good post.

Hard work would really be needed yet positivity on the things you are doing wont really be just enough without putting any extra effort on it.
Trading wont really be that easy or shall we say profiting isnt just a thing that can be achieve directly.You will pass countless of mistakes and losses
and getting experience and learnings from it.Utilize these things overall and you will know that you are going in the right path.

[proTECH77]

Our mind set actually do affects the way we succeed in whatever we do and that is the reason why we should train ourselves to always have a positive mindset as a trader. Many traders lose money because of negative mindset and not only traders but every field of life.

Indeed, the truth is when your mindset is fix on positive things, nothing will cause the negative to come in, in the place of positivity. Many atimes, positive mindset help alot, and should be encourage between traders and investors. As a little trader i am, am always very careful of my mindset while doing trade or invest. To succeed in life one need to be more positive.

[Cosbycoin]

I also read that to keep a journal for the trader is a must. It clearly shows your results and serves as a great way to correct your mistakes.

A regular review of one's trading journal is definitely important. Having your trades evaluated by other traders can be beneficial, too.

Yes that is right, it could let you have an insight into the things you miss. I personally feel that you can have immense profits in trading if you invest in the best project at the least cost. Normally in the bear market, when the economic activities fades away a bit, people start thinking that the market is dead or its era is over now but I think after the recovery starts and after the prices rise high, they invest only then which is not economically rational. Focus on cost minimization.

[davis196]

The optimal trader's mindset is this:
1.Be ready to fail in the begining.Be ready to fail big.There's nothing wrong with that,failure is more important than success in the start of every jouney,because you learn from it,while if your are successful right from the start,you become arrogant.
2.Have good signals.
3.Be patient.
4.If the market crashes,don't panic sell.
The risk/reward analysis is important,but without proper knowledge,you could still fail.

[lionheart78]

What’s the difference between a winning trader and a losing trader? It’s not that one is smarter than the other, or that one is luckier than the other. Sure, maybe having the right tools and the best information helps,

It is because the winner is smarter.  You cannot think of educating yourself and knows the flow of trades if you are not smart enough.

smart
/smärt/
adjective
1.
INFORMAL
having or showing a quick-witted intelligence.
"if he was that smart he would never have been tricked"
synonyms:   clever, bright, intelligent, sharp, sharp-witted, quick-witted, nimble-witted, shrewd, astute, acute, apt, able; More

In trading you need quick decision, and keen observation about the fundamentals and technical of tradings. And that falls  under the definition of being smart.  If both trader is smart, the smarter would win the trade meaning faster decision, wider knowledge,  and clever ideas.  Being smart is also equipping oneself with the right tool.  So basically it is because the one is smarter than the other why he won or profit in trading.

[Dilerium90]

My experience of trading on various exchanges is about two years. Based on my experience, I can say that trading is 99% of psychology. It all depends on your will, control, strategy, psychology, system. For this reason, 90% of traders are draining their deposits and never become rich.

[semobo]

When someone is more successive trader then he need to think out of the box,we can't get more profits by following others.A successful trader will put more effort to reach the goal but a losing trader don't have clear mindset of where we are heading.

[carter34]

If you really want to learn you should never stop no matter what hindrance is on your way, don't just look at how much money you have lost or how much you do have earned. It's not all about the money if you have the dedication to learn and to self-study, sooner or later all of your hard work will pay you off without even noticing you are the master of your own.

I believe interest is above all. To succeed in certain field and trading, you most be interested in that thing. It is the interest that will make you have the passion. You must like that thing and everything about it and that is why you won't running away if the going gets tougher. I mean when you keep getting loses, the interest will keep you going.

[leowonderful]

One thing many good traders recognize is that you do not always have to be trading; if you don’t feel comfortable with current market conditions and are unsure of what to do, simply don’t trade. Better to have money sitting on the sidelines waiting for a better entry than money being lost because you decided to open a trade at a bad time. I typically don’t trade in a bad mood either, as this can influence my decisions negatively and result in losses.

[Pursuer]

the most important  thing in trading based on what I have seen so far is experience you can call it mindset, luck, plan, ... but in the end only experience matters. for example the mindset of being able to make decisions under different circumstances in the market requires the trader to have experienced similar situations so that he can know what is the best course of action based on actions he had made in the past both good ones and also those that were mistakes.
although it may sound hard but it is not really. it only takes time for a trader to gain that experience but they will only gain it if they are trying to gain experience which means analyzing their trading history, analyzing their mistakes and most important of all to watch the market and charts for hours.

[Ararbermas]

Yes traders must have winning mindset because that is the only key to become successful and to avoid doing mistakes. But unfortunately what i've noticed nowadays mostly traders only relying on other ppl suggestion and seems like they don't have their own plan or strategy because they always change mindset without specific theology .i hope everyone will read this so that they become interested to build their own winning mindset not forever relying on other ppl work or strategy which is you have no idea if its really reliable. Btw op that is very informative. Thanks for sharing.

[gantez]

To be positive in what you are doing is helpful because it creates a winning mindset and even if you are losing, that positive mindset will lead you to be calm and have expectation for the best to come later.