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4 Best Mental Hacks To Improve Trading

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4 Best Mental Hacks To Improve Trading

Do you want to become a successful trader? If yes, this blog is for you. In this blog, I am going to tell you the top 4 mental hacks to improve trading. To be a successful trader, a successful mindset is a primary requirement. You cannot achieve success in trading without having a proper mindset.

Before we go deep into this topic, I want you to know that this article is not about trading psychology or trading mindset as we have covered all these topics in previous articles. If you have not checked those articles, please do check them out before coming to this one.

In this article, we are going to discuss real-world mental hacks that professional traders use which are not just useful in trading but are useful in life too. You will be going to improve your trading if you apply the tips that we are discussing today.

The main difference between an amateur trader and a professional trader is their trading mentality. In short, if you want success in trading or any other field first, you have to work on your mentality.

And here is how you can work on it:

Top 4 Mental Hacks To Improve Trading

1. Do not get attached to your trading positions

The most important characteristic of a professional trader is the ability to mentally detach from live trades. Amateur traders often fail in this. Your goal is to literally feel nothing once you take the entry in the trade.

Once you get this point, you stand a much better chance of making money in the market because you will automatically avoid the trading mistakes that will occur due to your emotions.

  1. Once you enter the trade, avoid looking at the PnL reports. Professional traders have learned that the easiest way to detach mentally from a live trade is to simply avoid looking at their PnL. After you place a trade, and set your target and stop-loss, just close your broker’s window and look at the charts and observe the price action.

Staring at the PnL won’t help; you cannot control the market; you can only control yourself. I know it’s a hard task to perform initially, but once you get used to it, then it won’t bother you much.

  1. Don’t try to guess when you have already planned your stop loss and watching the PnL while trading is just a stupid thing. There is no bigger trading mistake than watching PnL for no good reason. You do not need to feel the ups and downs of the market when you place your orders.

Now the question comes, what happens when traders look at the PnL when they place a trade? Several things, but most commonly, it results in second-guessing. You will start to feel uncomfortable when the price will start to move against your direction by a little margin.

Similarly, when the price moves in your favor, you will start getting excited and you may not be able to hold your winning trade. Many other scenarios may occur from watching PnL reports without any reason. If you want to mentally detach from your trades first you have to physically detach from the PnL screen.

2. Start considering trading as your business, if you really want to improve your trading

Your competition in the market is intense. You are competing against the sharpest minds in the world who have more capital, better knowledge, and better equipment.

However, you have one thing they may not; a sickening desire to be the best and to play the game with consistency and more discipline than them because that is how you will beat them. One of the hardest things to understand in trading is that you are competing against thousands of people at a time, and there is no place for errors. If you commit any mistake you have to take the punishment.

Trading should be considered as the ultimate psychological sport, which you have to play against the big institutional investors, hedge fund managers, and some ace investors.

Trading is not a get-rich-quick scheme where you will be rich overnight.

3. Come with a plan

Most beginner traders do not come up with a plan. They look at the charts and place their trades. It is a big mistake that many traders knowingly or unknowingly commit.

If you are not trading with a plan, then you are gambling. Trading is a serious game, and you should master all aspects of trading- such as psychology, trading system, and risk management.

Now, the question arises how to do this? To master any life skill, you have to learn it, and you have to practice it again and again. Trading is no different. I am probably the most competitive person you will ever meet when it comes to trading, business and entrepreneurship. Here are some tips on why you should consider trading as a competition and how you can prepare for it.

View each trade as a deal, a deal between you and the person opposite to you. Imagine if you were sitting in a room in front of someone and either you lose money or they lose money. In this case, you would be more focused rather than just trading by yourself.

Believe in your trading system. You have to work on this at least in your initial phase. Also, try to develop chart reading skills. Charts represent the behavior of the market participants. If you can read charts properly you will get to know what other people are thinking at a particular point.

4. Do not let money control your mind

Money has the ability to affect you mentally, regardless of whether you are making it or losing it. If you want to fix your trading, you have to solve this problem first. You have to fix your money mindset to be in control of your trading.

Here are some common problems that traders face regarding their money-

Fear of losing money. It causes traders to let small losses turn into big ones. Many traders are simply afraid of taking any loss. Because of this fear, many traders are even afraid to take a trade. They let good trades pass because they are too afraid of a potential loss.

Risking too much on one trade and no capital management– Generally, many traders have no capital management plan, and because of which they fail miserably in the market. Managing your capital is the most important part of trading, and you can not skip it if you really want to improve your trading.

Here is how you can manage your capital– The only way to manage your capital is to pre-define the risk, pre-plan, and just prepare yourself for losing before entering a trade. Remember, you can lose any trade. There is always a random distribution of outcomes for any given series of trades. So, take every trade by understanding that it can turn into a loss. Capital management is the only thing that will save you against all odds. It is the only way by which you can survive and succeed for the long term.

You may have heard that money is always made at the exits, not at the entries. You have to plan at which levels you are going to take your profits or at which levels you are going to accept the loss before entering into the trade. In short, you need entry and exit plans.

To improve your trading, you have to stay consistent and disciplined over a long period. If you stay disciplined over a year and then you speculate on one trade then not only you will lose all the money but also all the work you did staying disciplined will be worth nothing. If you want to improve your trading, you have to be consistently disciplined.

Conclusion

The main foundation for all great entrepreneurs, traders, and investors is the mindset. They all have become successful because of their ability to handle pressure and temptation whilst remaining consistently disciplined. If you stick to your plan and if you do not involve emotions in your trading, then you will surely be going to improve your trading.

I have spent many years practicing what I have addressed today. Whenever I trade, I apply every principle which we discussed today. I do more than just helping traders with entry strategies and price action techniques in my ELITE TRADER’S MENTORSHIP PROGRAM. Because I think along with price action, entry, and exit strategies more things are equally important.

When I started my trading career, a few years back, nobody was around me to tell me the importance of the 4 things which we discussed and even many other things which we will be discussing in upcoming blogs and that is the reason why I combine my price action analysis trading strategy with a solid mental and capital management plan to help traders achieve long-term success. I hope that today’s blog will improve your trading, state of mind and ultimately, grow your trading account.

25 Comments

  1. It’s just woww, how perfectly u described us about the most impo. Factor in trading that is a trader’s mentality and psychology

    I love this blog ❤️

    1. Thank you, Akshay, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.

  2. This blog really awesome n informative one.i would prefer to join you oneday soon.itz the hectic schedule that hamper me a lot in trading even I got the edge of my trading.Still I focus on my learning process and I believe I will surely become a trader just like you Sir.Thanking you trillions.

    1. Thank you Ashisa!!! Glad that you find the blog helpful. We constantly try to bring helpful blogs for traders.

  3. No one tells these Words …you saved many traders from future ..you created new era of line up for learning

  4. These are the only pointers that help us be a profitable trader. Thanks Anish Sir for noting them down so that we all can read and apply them in our trading journey.

    1. Thank you Atharv, glad that you liked the pointers, we try to help traders with their trading psychology through these blogs, hope this would have helped you too.

    1. Thank you, Devashish. Glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders.

  5. I think this is the most important points for me,,because every trade if it’s sl was not hit when ,,,it’s in green i became ,,,so much excited to seee it,,,and rather than 8 out 10 i squareoff my position without hitting my target,,,because i see the p&l its reduceing so i squareoff but instead i cut my position it’s make a big move towards my direction & i beacame emotional,,,& some times again i took trade & then my sl was hit,,,but from tomorrow i will be close my zerodha dashboard window,,after entering into trade thank you sir,,,lots of love ❤

    1. Thank you Manindra!! Glad you liked the blog, and we hope to bring more helpful blogs like this to help you in your trading.

  6. I have experienced what is included in above blog ..whenever i see my PnL i get panic…whenever i do not see it i feel nothing about that trade.

    1. Bhushan, hope you find the content helpful, and we constantly try to bring more helpful content for you.

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