Successful Trading: Five things you need:
- Mental toughness
This list is by no means exhaustive, but it’s a good start. I could spend ages talking about each subject here. If I get asked enough then I probably will!
- Mental Toughness
Let me be blunt. Trading is a real head fuck. It really gets inside your head and messes with it. Making what are normally rational decisions become very difficult in the heat of the battle. When you have your hard earned money involved it changes everything. Some people are over cautious. Others think they are invincible. It’s not until after the event and they see the result of their actions that reality kicks in. The key skill is to be able to manage your emotions, keep them in some sort of control. This enables you to apply the focus and processes you need to make a successful trade. Learning to trade is a long and arduous road. Even with a high level of training, it will take lots of practice and screen time. Lots of knock backs, false starts and disappointments. It is no coincidence that the guys I have been involved with long-term are mostly successful. The ones that lack the mental toughness to “dig in” are the ones who don’t quite get there.
Focus is something I think many of us overlook when it comes to planning a trading session. A lap top in the front room while eating your tea, listening to the days news from your partner and having a couple of excitable kids jumping all over you is not ideal conditions for a successful trading session.
Make sure you have a quiet place to trade with no interruptions. Imagine being Neo when he plugs into the Matrix – You won’t go far wrong.
BUT, do not exchange trading for spending a little time with your family.
What do I mean by a toolkit? The tools of the trade. Starting with a bank. This should be money put aside specifically to trade with. Money that you can afford to lose, (who can afford to lose money????) i.e You won’t need it back to pay your rent or mortgage at the end of the month. It doesn’t have to be a huge amount. Even £50 can get you started.
Second on the list is hardware/internet. A mid-spec PC will be fine to trade with, as long as you have 10MB internet speed you will be fine. The most important part of a hardware set up is a decent sized screen. The bigger the better. (I use a 27”).
Third on the toolkit list is a third party App. This is essential. It enables you to see the signals that the market provides and find your trades. You can execute them quickly with one click mostly and enable protection systems like “Take SP”. I am not going to recommend an App, but the most popular ones are Bet Angel, Gruss Betting Assistant and The Geeks Toy. All slightly different and all top class products.
Sitting there blindly clicking away may well make you a few quid. But in general, knowing what you are doing is a good idea! The markets throw up signals that help you to work out what may happen next. Your mission is to find these signals and interpret them.
What is vital is to concentrate on the process and execution, NOT how much profit you are making. That will come with time once you have mastered the PROCESS.
Training is an excellent idea. Whether that is with me or with someone else. Going alone isn’t always the best investment in your time or bank balance. Invest in yourself!
This comes into two parts really.
Part 1 – Partner and family
You must have the support of your partner when starting this journey. They will soon get fed up with you being away from the family unit every spare hour you have, possibly losing money too. Partners expect instant results!!!! This is very unlikely. However much you make, it isn’t worth losing your partner for.
Part 2 – Other Traders/Mentors
From my experience running MGW, our Mastermind Program is a great success. It brings like-minded folk together, lets them learn from each other in a friendly and creative environment. Having a shoulder to cry on. Someone who understands what you are actually talking about means a lot. It’s hugely beneficial both in terms of learning and your mental health too.
My next Workshop runs on 24thSeptember in Coventry.
There are still a few places left.