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Creating a winning trading mindset

April 28, 2021
Cat McLean

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Creating a winning trading mindset

Successful trading is as much about keeping composure as it is about understanding markets. That’s why psychology is one of the most important topics in trading. Understanding the psychology of trading can help you keep your cool and strengthen your decision making process. By knowing even the basics of trading psychology, you can be well on the way to developing a winning trading mindset.

Successful trading is as much about keeping composure as it is about understanding markets. That’s why psychology is one of the most important topics in trading. Understanding the psychology of trading can help you keep your cool and strengthen your decision making process. By knowing even the basics of trading psychology, you can be well on the way to developing a winning trading mindset.

Last week, Reach Market’s Managing Director, Patrick Nelson sat down with Greg Tolpigin, head of Proprietary Trading at Gleneagle Securities to discuss the psychology of trading.

Whether you’re trading to get more financial freedom, wanting extra money for life’s little luxuries, or as your main form of income, people trade for many different reasons. Whatever your motivation, it’s important to develop the right mindset for what you’re trying to achieve. 

This involves learning how to think like a trader. A big part of that is knowing how to maintain your composure even when the market makes you nervous. 

How do you develop that composure? There are a few key tenets: Learning to execute a trade with confidence, training your mind to understand probabilities, and building an unshakeable trust in yourself to be successful in an unpredictable environment.

Greg believes you need to remove emotion from your trades. He does this by mechanising the trading process – before buying, he maps out the entire process including the risk and the edge. 

By doing this with your trades, you are better equipped to simply do what is necessary in the moment, according to Patrick Nelson.

 

“One of the key aspects to successful trading is to really understand yourself, what you’re trying to achieve and how you’re going to go about that,” Greg said. 

 

“Trading, just like sports, is a performance-related field. There’s a scoreboard and the scoreboard is all that matters,” he added.

For Greg, traders can learn a lot from professional athletes. The most successful ones are those that train consistently, know their strengths and act accordingly. It’s the same for traders.

As a professional trader with more than 25 years experience in the markets as a high-level strategist, Greg has enjoyed a successful career. Although Greg’s approach is not for the faint hearted, every trader can learn something from his deep understanding of trading psychology.

This article summarises some of the information discussed in the special trading psychology session of The Trading 360 Summit, Creating a Winning Trading Mindset. To hear more from Greg and Patrick and also learn about resources you can use to develop your trading skills, watch the full webcast below.

 

If you would like to try trading for yourself you can do so by taking a trial to our Implied Volatility platform.

 

 

Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only trade if you are confident that you fully understand what you are doing. If you are thinking about acquiring a financial product, you should consult our Financial Services Guide (FSG) at www.reachmarkets.com.au first. 

The opinions expressed in this article are the personal views of the involved presenters. 

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment. Please click here to read our full warning.

Past performance is not a reliable indicator of future performance.


General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.

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