Racing News Blog
A traders mindset for long term success
Thinking back to the earlier years when I first looked into trading on the Betfair exchange, it was like starting out in any walk of life I was very naive and obviously inexperienced. Little did I know at the time the huge effort it would take to fully understand how to be consistently profitable let alone actually putting it into practice.
People get into trading for many different reasons but what most don’t understand is the mindset they bring into trading is not the mindset that will make them profitable long term. It took me a long time to work this out with a lot of heartache and losses. So many traders are fooled by randomness often by the method/ system/ edge (whatever you want to call it) they are using. Their edge might offer no value at all long term and so the randomness coupled with the wrong mindset sends them around in circles. A good day/ week, then a poor one, another poor one, two steps forward, three or four back, sometimes they break their rules, other times sticking to them but still being fooled by randomness. Others will have an edge worth sticking with, it has value but they break the rules of their edge on a regular basis and the reason they break them is because their mindset is not right, the mindset they bring into trading is not the one that will make them consistently profitable.
So many only concentrate on their method of execution, focus is on daily P&L results yet they don’t focus on mindset, they might fool themselves into thinking they do but the main focus is still on that P&L “I can do this, I have got this, yesterday was a blip, I know I can, I have done this before, this works” They are simply being fooled by random results and they sadly don’t see it or if they do they won’t acknowledge it and act on it.
Firstly you need a method of execution that gives you value in the market, then you need to master that method, understand it, believe in it, understand the positives and negatives of the method. No method is 100% profitable all the time if there was such a thing no one would share it that is for sure. So you have to understand the upside verses the downside to what you are doing, in doing so you will work out if you have any value in what you are doing.
Then you have to work on the mindset but most don’t even get this far, they try a method and give into it when they hit the first, 2nd, 3rd or 4th setback. They then go looking for another method and go through the same process again and go around in circles until they get dizzy and give up or their bank goes bust. They do this without actually fully evaluating if what they are doing will give them that edge in the market.
The few that do go fully through with the correct approach spending hours and hours watching markets fully immersing themselves in the process but are still taking two steps forward and three or four back, this is because the mind they are using is not equipped for trading. Yes they “get it” they understand the exchange, possibly have read a mountain of books on trading, betting, mindset, watched a mountain of You Tube videos, maybe been on a course, read an e-book or been to a seminar but their results will not change until they work on the biggest edge of all THEMSELVES.
Now I am no psychologist but I know too well that if you do not fully understand your current state of mind and then fully understand how to change it to a winning one in trading, then you will not be profitable in the long term. This change of mindset is different for each individual too, we all have different past experiences in life so the mind we bring into trading is different for each person so this is something I have been working on with some HFP members on a 1-2-1 basis. You have to work out what makes you tick, what your traits are, your strengths and weaknesses.
Once you understand your own strengths and weaknesses you then need to understand how emotions trigger you in the heat of battle, you can’t trade completely without emotions, so you have to understand how to regulate them with as much emotional detachment from the physical side of trading so ostensibly clicking that mouse to execute your trades. I could write a book on this but it is something I talk about on our courses and I know some ignore the message, they just want to know how I trade when actually, they are missing a huge part of the jigsaw due to their own ego. This is called being human though, we are not robots, we are attracted to money, the fear of missing out, we want instant success but to find success at this you have to strip it back to the bone, look in the mirror and ask huge questions of yourself when you do and you find the answers the jigsaw will fully click into place and the whole game will humble you, believe me it will.
This is the hardest thing I have ever done in my life, this is why I educate how to trade the in-play markets so others’ journeys are nowhere near as tough, I know how tough the process can be, if when I started out someone could have bottled up the knowledge I now have as a trader and handed it to me for a fair financial exchange I would have ripped their right arm off for it. I offer that and much more in our academy including 1-2-1 help if needed.
Find a method that will give you long term value and the right mindset, until then you will be fooled by randomness