What a Successful Trader Would Never DoFeb 22nd, 2014 | By Bella | Category: General Comments, Mike Bellafiore's (Bella's) Blogs, Trader Development, Trading Psychology
This was kind of a mixed week.
1. I find the 2nd day trade makes the most sense to me. I pick the strongest stock of the day and then find two levels of support and outline my entry price, stop price, target, and size. So far so good.
2. I also found that I don’t pay as much attention to the offers as I paid to the bids. This was my working goal for the week.
3. And I changed my chart layout to have more perspective of the price. I added a 5-day/30-min chart.
1. At the last hours of Friday a took four trades that erased the profit of the week only because I saw the stock on Steve Spencer’s monitor: $AAPL.
2. After a week of hard work and waste all my profits in two hours, I felt frustrated.
Thanks for your feedback. I continue to learn every week.
I have had the privilege to train hundreds of traders from scratch. There is something very wrong about the language used above. You cannot think like this and become a successful trader. I have not trained one outlier of this mandatory mindset.
Can you guess what it is? Go ahead re-read the email sent by this hopeful developing trader.
First, let me say this trader is also doing so much right. I have huge respect for his effort, passion, and training plan to improve. And it is human nature to be frustrated at times as a trader, and that includes me.
But there is something I must correct. That state of frustration must be temporary and lead to a more constructive mindset.
You must take each trade, each trading day, each trading month as an opportunity to learn. The best traders do not try and make money. They try to improve. Every tick in the marketplace is an opportunity to learn, improve and become better at their craft. You cannot think differently. There are plenty of different ways to attack the markets but this mindset must be embraced. Must, must, must, must!!!!
What can I learn from this trade?
Why did this $AAPL trade fail?
Did I lose too much on this trade?
Did I make a poor trade?
No trades are a waste. They are only a waste if you make them such. It’s your choice to be frustrated instead of drilling deeper into the trade for learning.
The great ones learn from their trades. Always, every day, every trade.
You can be better tomorrow than you are today!