We have all heard that our belief system is important to our success in anything we do. Here is a simple test to help you understand your beliefs about yourself as a trader. Look in the mirror and say: "I am a trader." Now, do you believe it? If you do, then you are! If you don't, then we have work to do.
Here are some other common beliefs of good traders:
I believe I will be a successful trader.
I believe trading is a process.
I believe I am personally responsible for all of my trading results.
I believe I can be successful without being perfect.
I believe my performance as a trader does not reflect my self worth.
I believe if I make one bad trade that is all I have done.
I believe I can identify and execute winning trades.
I believe I can trade with confidence.
Which of these do you share? Can you see that with education and practice, you can come to believe similar things about yourself?
Anxiety
Another psychological element is anxiety. Anxiety is driven from four sources:
1. Fear of failure. There are at least four fears here, all of which can be debilitating.
i. You tie your self-worth to trading.
ii. You are concerned about what others think about you.
iii. You are striving for perfection.
iv. You feel pressure to perform.
2. Fear of success. You don't feel you are worthy of good things. You sabotage yourself.
3. Fear of inadequacy. You doubt yourself and your abilities. You have a loss of self-esteem and diminished self-confidence.
4. Fear of loss of control. You feel you are not the master of your fate. You lose your sense of personal responsibility. You feel the market is out to get you.
