Trading to win
Every day we get approached by people wanting to learn to trade so they can supplement or replace their income and build wealth, yet overwhelmingly nearly all are approaching wealth creation with the mindset not to lose rather than to win...let me explain.
If it is your desire to be a millionaire, then you need to make the decisions a millionaire would make, not the decisions of someone who is financially struggling.
So here is the dilemma.
How do you become a millionaire if you a currently struggling financially or just doing okay.
In reality, everything is a matter of perception.
Nothing positive comes from a negative mind and financial success does not come from a thinking of scarcity but rather one of abundance.
When I am teaching beginners to trade to win, I share with them the principle of Be, Do, have.
In order to have the income and success that a good trader has, first you must BE the successful trader in your own mind and this will allow you to DO what the successful trader does.
Doing what a successful trader does means not only analysing the market or stocks to a high level, more importantly it means making the decisions successful traders make.
If you become the successful trader and do what the successful does, then you will ultimately have what the successful trader has.
Let me give you an example.
Successful traders are independent in their thought process and they are not reliant on anything other than their knowledge, skill and expertise to achieve their goals.
Successful traders do not subscribe to stock tipping reports nor do they watch Youtube videos of someone in their bedroom or study dressed in a t-shirt or hoodie telling the world what they are buying or selling.
Successful traders are successful because they treat trading like a profession and not a game to play.
They are successful because of choice not because of chance, and they trade to win rather than to not lose.
Those who trade to not lose, will avoid paying for anything if they can or only paying very little.
They believe by getting free education or information and tips from multiple websites, they will become a trader.
But all that tends to do is disempower them and make them become co-dependant.
Worse it gives them the illusion that they actually have knowledge and that they are a trader.
Being successful at trading is 80 per cent attitude and 20 per cent skill.
But when people desire to change their situation and become a trader they look at who they are and what they have now and then dream about who and what they could be from becoming a great trader.
And in doing this, they see a scary vast unknown void between these two points.
They then realise that this vast unknown void requires time, effort and resources to cross from where they are now to being a successful trader and that success is not guaranteed.
In the majority of cases, this causes these same people to make decisions to not lose rather to win.
Making decisions to not lose means people end up taking the very long, hard and costly route to achieving their success by attending every free seminar or doing free online courses, surfing the website for hours every week, year after year and maybe even reading a few books.
The result in most cases is failure or poor result.
So how do you trade to win?
Before you make a decision, ask yourself in front a mirror what would the decision of a successful trader be in this case?
If you can look at yourself in the mirror and give a confident answer that you know to be true, then you are on the way.
For example, would a successful trader be comfortable paying $1K to $2K for good software that will assist them to do their analysis? Yes they would.
Wold a successful trader be okay with paying $100 a month for reliable good data? Yes they would.
Would a successful trader be okay with paying for a good education to enhance their skills? Absolutely.
The reason they are happy to do all of these things is because they absolutely know their trading will pay for everything they need to be successful.
Successful traders don’t look at it in the context of what something will cost them if they do something, they leave that for those who are playing to not lose.
Successful traders look at it in terms of what they can do and what they will make and this is trading to win.
So what do we expect in the market?
The Australian market started the week on a low, having fallen to 5834 points on Tuesday, before it rose on Thursday above 5,900 points.
The Australian stock market has taken its lead from the US, and short positions are being unwound as buyers look to enter at cheaper prices.
It was interesting to observe that the rate of decline slowed this week and was substantially less than what occurred in recent weeks, indicating that much of the selling may have exhausted.
However, a cautious approach is required.
While the two year low may have occurred this week, I would prefer our market fall towards a strong support zone between 5,750 and 5,850 points before the next rise.
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