How to Build a Winning Trading Mindset

trading mindset

To be successful in trading, you need more than a winning strategy. You need to have the correct trading mindset to succeed over the long run. A trader with a winning strategy but who starts being overconfident about it may end up losing control and making mistakes. To be a winner, it’s important to have several edges against all the other traders. One of this edges is mental – you should think like a winner to become one. In this article, we present 9 characteristics of a successful trading mindset, which will give you some powerful insights to complement you as a winning trader.


1 – Flexibility

First of all, you need to be flexible and open-minded. Especially in Forex, given that the market is open 24h a day, you need to be flexible enough to trade during the London session, the New York session and the Tokyo session. A good opportunity may appear at any time, and you need to be ready to be there and catch it. Besides, open-mindedness is really important when analyzing a currency. Markets change fast, and what was true last week may not necessarily be correct this week. You should always keep your mind open to sudden changes that may occur.


2 – Find what works FOR YOU

There are some traders who prefer to risk more, others prefer to trade only during a certain session, others like to look only at fundamental analysis and some only trade on technical analysis. This means that each one of us should develop a strategy that is good only for himself. What has proved to be a winning strategy for your partner may not necessarily work that well for you. He may look at the market in a different way than you do, and the strategy will reflect that. In this sense, you should discover what is your trade profile and start working on a personal trading strategy or use a proven trading strategy that fits you.


3 – Don’t be overconfident when you win

We all know how it’s easy to become overconfident after a good winning streak. However, it’s crucial to maintain the same posture towards trading as always. If you become too confident and start being more relaxed about your trades, hoping that you’ll continue to win, you may end up losing what you already won because of your sloppiness. Basic mistakes can occur due to a lack of attention. Instead, you should “convert” your confidence into focus to keep having good results.


4 – Don’t lose your confidence after some bad trades

As important as not being overconfident when you win is to not lose your confidence after some bad trades. It’s usual to have some bad moments and enter on a losing streak. This doesn’t necessarily mean your strategy is failing or you’ve lost the plot. Even the best strategies happen to fail under certain market conditions, and losing is important to improve your trading. If you’re having troubles in being confident, you may want to check our article on 3 Ways to Boost the Confidence in Your Trading.

“Losing a position is aggravating, whereas losing your nerve is devastating.”

– Ed Seykota


5 – Don’t trade to get your money back

As we all know, it’s difficult to remain focused after a bad trade. Besides losing confidence, it’s usual to see traders getting angry and trying to recover what they’ve lost. First of all, don’t let your emotions interfere with your trading, that will only guide you to a poor performance. Second, don’t trade just to recover your losses, as you’ll probably end up losing even more.  Instead, you should remain calm and recover what you’ve lost over a certain period of time and get back on track. Haste will not lead you to good decisions. Besides, getting into a confrontation with the market won’t recover your losses. Don’t be mad at the market, try instead to think about what went wrong and improve it.


6 – Don’t trade just for the money

This may seem a little bit strange since the majority of traders do it to earn some money. However, some of the greatest traders of all time, like it is the case of Ed Seykota, reach a state in which they “forget” about the money involved and are much more focused on being good traders than in the money they can make. Always thinking about money may prevent you from focusing solely on your analysis and making the right trades. Moreover, if you’re a good trader, the returns will eventually come.


7 – Be patient

One of the most important characteristics of a successful trader is being patient and wait for the right chance. The market is full of opportunities, you only have to be aware and get the right ones. Sometimes prices may be flat for a long period of time, without any major change worth trading. During this time you should not “force” any trade, simply wait for a better time. Some strategies work better under specific market conditions. By applying them in a different way, you may risk its failure. If you wait for the certain opportunity, you’ll have a higher chance of success.


trading minset


8 – Trade with money you can afford to lose

In our article about money management, we give some advice about how much money you should put in each trade and how you can ensure a positive expected return. It’s crucial that you don’t risk too much in each trade given that, if things go against what you planned, you may end up losing more than you can afford. Take small losses and let your profits run. The more you lose in each trade, the higher your winning rate has to be in order to be profitable over the long run.


9 – Be realistic

The final characteristic of a successful trader is the ability to be realistic regarding your expectation. If you don’t already know how much money you should expect to make in Forex, our article may give you some help on that. No trader starting with 1000€ can expect to win like 10,000€ per month. Your account will grow slowly at the beginning and then the compounding effect will ensure you win more as time goes by. Keep a realistic expectation about what you can win and define your goals according to that view.



The Bottom Line

To be a successful trader, you have to get as many edges as you can, and the mental edge is one of the most important. The above-mentioned characteristics are some of the ones you should try to implement to improve your trading mindset. This will complement your strategy and turn you into a mentally strong trader, able to go through bad times and prosper on good ones.



Developing a Trader Mentality

To be successful in trading, you should aim to develop a true trader mentality. That means to have the capacity and attitude that allows doing the right calls in trading.


Control your emotions

For instance, how do you react after losing 5 trades in a row? How do you react when your stop-loss is nearly getting hit? Perhaps the most difficult in trading is to accept losses and go ahead to the next trade. This is a difficult decision in your trading, but you need to understand that if you had a loss it doesn’t mean you failed or you were wrong. If you were following your strategy rules, you were doing the right thing. Always following the rules of your (winning) strategy is the necessary attitude to be developed.


When it comes to trading, your emotions are a big part of the equation, primarily when you’re losing. The way you face your losses is crucial to develop a correct trading mentality and achieve better results in the future. Successful traders are the ones able to better control themselves and always act to what they have planned. They also know that losing is part of the game, and the focus should be on improving the strategy, not avoiding losses. Below you can find some key elements that are part of winning and losing mentalities. You can also find out more about how to succeed in trading here.



Winning mentality vs Losing mentality

Probably, the most important thing in trading is to learn from your own mistakes. At the beginning, it’s usual to lose more than you win. The first losses are crucial to understanding what went wrong and improve your strategy. Since it isn’t possible to control the market,  it’s important to understand how it works and how you can profit from movements of prices.


It’s impossible to win every trade. The focus should be to maximize profits and minimize losses so that you can have a positive overall result even if you lose more trades than you win. The successful trader is the one who has a higher profit/loss ratio, not a higher win/loss ratio. You can do this by focusing on letting your profitable trades run, and accept small losses. A newbie trader does exactly the opposite – he takes many quick wins, which surely results in a fantastic win-rate. But when he’s losing, he just hopes and prays that the market turns. Of course, this inevitably results in high losses. This is the wrong attitude, one that will make you lose money.


Finally, it’s fundamental to know that you’re the only one responsible for your wins and losses. You shouldn’t trade just because of some tip or an analyst’s opinion. Reading others opinions can, of course, expand your horizons, but try and check if what you were told really works or not. Create your own strategy and always act according to it. If you don’t have a plan, it’s easier to lose control of your trading.


Let’s take a look at 2 common types of traders, to see what are the most usual differences between a successful and losing trader.


Trader A

1. Doesn’t expect to win every trade, but expects positive results

2. Accepts the responsibility of trading

3. Learns from own mistakes

Trader B

1. Thinks the market targets him and hunts his stop losses

2. Blames the broker, platform, and even the market, for losses

3. Doesn’t admit own mistakes, and so, doesn’t learn from them


These are two fundamentally different ways of looking at the markets. Trader A accepts his losses and tries to learn from them, while trader B will blame everyone and everything for his losses. Trader A knows trading is a responsibility, whereas trader B looks at trading as gambling. Over time, these differences will make these traders go different ways: trader A will strive to become a better trader, and will likely get there. Trader B will hardly learn anything, and if he doesn’t have a lucky shot, he will eventually lose all of his money.


Practical mental configuration


  1. Your path to successful trading might be frustrating, not because it’s hard, but because there is a lot to learn and you will make mistakes, as everyone does.
  2. If you’re paying for your mistakes, then learn from them!
  3. Any person can reach better results in trading if they place their effort on it. That includes believing in yourself.


A good way to apply these 3 points is through trading in a demo account. Most brokers offer it for free, and it’s the best way to test strategies, improve your trading and control your emotions during trades. Once you start playing in a real account, your money is at risk, so you better know what you’re doing if you don’t want to lose it.



So, what type of trader do you want to become? Which of traders above would you trust your money? Definitely, the answer will be Trader A, right? Then start working on these 3 points, and achieve a true trader mentality.

7 Secrets from Psychology to Succeed in Trading

how to succeed in day trading
Have you wondered how to succeed in trading and become successful in your trading? One of the most interesting areas of study developed in psychology is research on the concept of success. What makes certain people more successful than others? This is one of the central themes for dealing with traders’ psychology. This article will address the issue of how to become successful in your trading and give you a roadmap to achieve success.


Indeed, achieving success in trading seems to have a formula. In an interesting study, and after 500 interviews and a much elaborated theoretical effort, Richard St. John helped to clarify which ingredients are part of this formula. He emphasizes 7.


1. Passion

First of all, one of the most important ingredients is passion. Passion requires a clear awareness of what motivates us, what moves us when we do something. What’s the reason and the strongest motive driving us to become traders?

This source of inspiration must always be present and should be the basis on which our day to day life should run. In difficult times, it’s this passion we must resort to finding our way forward.

It is especially important to be passionate about trading because of the amount of effort you’ll have to put in if you want to succeed. Trading evolves spending a lot of time looking at the markets and testing strategies until you find the right one for you. In this sense, it’s crucial that you like what you’re doing, otherwise, it’ll be really difficult to spend all this time until results start appearing.


2. See it as a Job

Dedication and work seem to be another important ingredient in achieving success. Not just work, but hard and dedicated work. No results are achieved without a hard and dedicated effort.

There are professional traders who do this as a job. However, even for small traders, this activity is able to proportionate good profits if the strategy is the right one.

Trading may be considered a source of income like any other job, and so it’s important to see it as such. Even if it’s done as a part-time, real money is at stake. As such, the intensity of work should be same as put in a job, only proportional to the time spent in this part-time.


3. Practice

A 3rd element, closely associated with the former, is the necessity to practice. Nothing in life comes for free, and so it’s crucial to practice, practice and practice again, in order to achieve results. We are creatures of habit striving to achieve something. Without practice and routines, our brain does not assimilate information.

A lot of brokers and platforms offer the possibility of opening an account without a minimum deposit and only use demo accounts. This may be a good way to start practicing and testing strategies. It is impossible to learn how to trading by just reading about it. As such, the best option to gain insights and understand how markets work is really by being involved.


4. Focus

The 4th ingredient for success is focus. Our brain performs better if we are doing only one thing. Concentration on a specific idea or strategy is essential to achieve a better result in that particular task. When trading, traders should only focus on the markets. Poor attention may result in missing major market moves or entering in the wrong ones.

Nowadays it’s very common to hear about multitasking. In trading, this may not be advisable. It’s an activity that requires a lot of attention to be able to spot possible reversions of the trend, breakouts, etc. To succeed in trading, a lot of factors must be taken into consideration. The only way to be completely aware of what’s happening is through complete focus.


5. Effort

By effort is meant not so much dedication but endeavor. Success requires constant commitment and being able to fight “against everything and against all”. Spending hours and hours unceasingly pulling old boundaries to reach new ones. This sense of commitment and endeavor characterizes many of the personality traits that have been successful in the markets.

As already said, trading requires a lot of hours invested until results start appearing. As a result, a lot of traders give up at half way, because they don’t understand the level of commitment necessary for success. Only be working more and putting more effort into something, you’ll be better than the guy next door.


6. Persistence

Having the capacity to persist and the effort to achieve results is another ingredient to success. Persistence is a concept that, above all, requires building barriers against negativity. Barriers against failure, criticism, pressure and rejection.

In trading, it will be at least as common to lose than it is to win. Traders must be able to overcome all their losses and learn from them. Only with this mindset should you be able to reach a level of profitability. We wrote about how to work out this mentality in our Trader’s Mentality article.

It’s important to fall and learn from that. Don’t quit and improve more at each step. It may take more or less persistence, but time will come when things start being the way you thought.


7. Family Support/Team Spirit

To conclude, success is also more easily achieved when we have a network of affections around us. Once again, through this network of affection and understanding, we are able to overcome adversities with greater ease.

Working in a team can also be helpful. Although it’s only needed one person to trade, having a team of traders discussing their views about the market is valuable. Support and teamwork help fighting against our own limitations.



What is successful trading? How to succeed in trading? These questions pop up in traders’ heads when they start trading. The answer is that we must start by understanding what the word success means and how we can achieve it. Studies in the field of psychology came to detect patterns common to all those who have succeeded. The 7 aspects presented above are the main ones if you wish to become a successful trader.