Estimated Reading Time: 4 Minutes
Self-Confidence is an essential element in any business venture. This is especially true if your business is day trading, since psychology plays such a major role. In this blog post, I want to share a few things that helped me change and improve my mindset as a day trader, develop a winning mindset and trade with more confidence.
About 10 years ago, I received a copy of the book “Think and Grow Rich!” by Napoleon Hill. Today, I credit much of my success in business (including day trading) to this book and the core values it teaches.
At first, some of the principles and techniques described in this book appear a bit crazy. For example, reading “I will statements” and your trading plan aloud every day. Initially, I questioned whether reading these statements out loud would make a difference over just reading them to myself. But, I decided to approach Hill’s recommendations with an open mind and was pleasantly surprised by the results.
Here is a brief overview of what I got out of Napoleon Hill’s “Think and Grow Rich” book, and highly recommend you read the book for yourself:
- First, you must have a burning desire! For a day trader this desire should be “to become a consistent winner in the markets”.
- Second, you must to have a definite goal! This should include the amount of money you want to make and when you want this money in your account.
- Third, you need to have a definitive plan! Here’s where you detail how you are going to earn that money.
I already covered the important aspects of a solid trading plan in a previous post.
Here is an example of “I will statements” that you should read out loud every day before you start trading. These statements are generic enough to be applied to most trading styles. Items specific to your style should be added. You trading plan and these statements should be read aloud first thing in the morning and right before going to bed.
“As a trader, here’s what I will do:
- I will follow a trading plan to guide my trading –
therefore my job will be one of patience and discipline.
- I will plan each trade carefully – I will not jump into trades by fear of missing out.
- I will monitor the market’s current picture.
- I will manage my trades to protect my capital and my profits.
- I will protect my capital through good money management.
- I will take responsibility for all my actions.
- I will trade to trade well and for the love of trading, not to trade often and not for the money.
The money will come as a result of trading well.
- I will not be influenced by the opinions of others. I will reach my own decisions
and follow them.
- I will build the self-trust necessary to operate in an unlimited environment
which has no rules.
- I will be rigid in my rules and flexible in my expectations.
- I will never think that taking money from the market is easy and I will never assume
that I know enough.
- I will treat trading as a probability game in which I don’t need to know what is going to happen next in order to make money. All I need to know is that the odds are in my favor before I enter a trade.
- I believe that I deserve this money. I believe that I will have this money in my possession. My faith is so strong that I can now see this money before my eyes. I can touch it with my hands. It is now awaiting transfer into my account. I am awaiting a plan by which to accumulate this money, and I will follow that plan when it is received.
Read (and reread) this book and apply its principles to your life – and notice the difference in your Self-Confidence.
Do you follow a similar routine?
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