Creating a winning mindset

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To extract money from the market years after years you need a good setup and winning mindset. Challenge for many traders is to have a sustained winning mindset when market often frustrates you.

Winning mindset comes from having confidence in your own market understanding and setup . Winning mindset also comes from your track record of creating new setup ideas as market changes or your own understanding of market increases.

How can a struggling trader develop winning mindset before he or she gives up. Lot of it to do with finding success and shortening your learning curves. Building your trading approach around commonly used and proven setups by other successful traders is one of the better approach to do this.

I would recommend any new trader or struggling trader to build your approach around momentum. Momentum has been the most persistent tendency of stock. By focusing on momentum you are focusing on stocks being favored by the market at current moment.

The other important contributor to developing winning mindset is the nature of your belief systems and how firmly they are held. Beliefs drive behaviour and if we have right beliefs then right behaviour is an outcome of that belief.

Beliefs about how market works or how traders make money largely determine your trading behaviour.

Let us say if you hold a deep belief that “biggest winning stocks have good earnings and sales” , that belief would lead you to scan for stocks with those characters and trade them. Now because of this belief you will eliminate stocks that might be bigger winners than stocks with “best earnings and sales”.

Unless you change your belief you will find it difficult to trade many profitable methods. Many traders have a belief ” only way to make money is by holding for long term”. That belief dictates their behaviour and it closes them to look at alternative reality of swing trading .

There are many such belief traps when it comes to entries , exits , where to put stops and where to exit. Sum total of those beliefs determine your trading . If you are struggling to make money currently it is the fault of some of those deeply held beliefs and not necessarily markets.

But it is easy to fix that problem. With few mindset shifts, better setups, strategies, and process you can get the trading results you are hoping for.