Winning Forex Trader Mindset

The thing that separates most the winning traders, the traders that make money consistently and the losing traders, is their mindset. It is known that if you give two traders the SAME trading system they will often generate completely different results. The reason for this difference is that psychology plays a major role in your trading success.

When becoming a profitable chart pattern trader you must gain the mindset of a winning trader. This article will explain what are the parts of the winning trading mindset and how winning traders think and act.

KNOW THAT  100% WIN RATE DOESN’T EXIST

Winning chart pattern traders know that there is no such thing as 100% win rate, and that trading is essentially a statistical game. You can win around 65% to 85% (if you take only the highest quality trades), and that is okay. Professional traders can even generate profits with only 60% win rate – and the reason is that they lose a little and gain a lot when they win.

Winning traders accept losses as a part of the game, as the cost of doing business. Therefore they never change their trading system even if they are faced with streak of losses.

Losing traders start to doubt themselves when they lose, start to change their trading system and eventually they lose their edge at the markets just because of luck. You should rarely change your trading system and stick to trading chart patterns with confidence, even if you face some losses. If you stick to the system you will eventually recover and your profits will continue to rise consistently.

THE WAY TO THINK ABOUT TRADING

When trading chart patterns, you should consider trading as gambling on dice, when you know that your odds are on your side. You never change your trade size just because of losses, as you have confidence in your system and that if you continue executing it, you will win in the long-term.

Another thing that all winning traders know to do it to stick to their initial stop loss. You should place stop loss using chart analysis and on logical places, and when price hits that place you should be ready to close the trade and never regret it. Don’t be affected by emotions and hopes that price will reverse, to your advantage. You should always stick to your stop loss and know to cut losses quickly when the trend is not on your side.

TRADE BY SYSTEM, NOT EMOTIONS

The professional trader reacts to what he sees on the chart, not to his emotion or hopes. You should, for example, never add up to a losing position. Such trading methodology is based on emotion (hoping that price will reverse), and not reason – and will eventually lead to a margin call. Another mindset failure that loser traders do is to second-guess their system and hesitate before entering the trade. You should never second-guess your trades and execute your system without any doubt.

CONCLUSION

The key to trading for a living professionally, is sticking to your system with full confidence – this will ensure your long-term survival at the markets.