Trading is a mental game – it’s you against you. That said, what would you consider to be the strongest attribute when it comes to…
being a successful trader? Of course that answer is relative, but mental toughness is arguably one of, if not the strongest attribute.
Why?
Simply put, without mental toughness, a traders fundamental or technical analysis skills mean absolutely nothing!
Let’s say you’ve done your due diligence on a particular security and all the research points to an increase in price.
The trading session begins and your stock is setting up. Now it’s time to pull the trigger and submit your buy order.
The position triggers and within 20 seconds price goes down, reaches your stop and you’re faced with stopping out or giving it “just a little more room”.
You decide on option #2 and get deeper in the hole, eventually cutting your losses.
Not only is your financial capital effected, but so is your mental capital.
At this point, you’re at a crossroads. Do you simply walk away and go look for the “next big stock” or do you patiently wait for your original idea to come to fruition?
The answer should be crystal clear.
This is where mental toughness comes into play. Of course it’s easier to go search for another stock “in play”, but now your mental game is skewed and focus may be clouded.
Trading is a mental game and your biggest opponent is your own mind. Get your mind right!
