5 Mindset Tricks that Help You Become Successful in Daytrading
1. Start the Day with Clearing your Thoughts
When the market opens I find it much better when my head is empty and free of strong biases.
Reading newspaper, checking investing.com, reading forums, twitter, chatting with other traders or even sitting one hour on the computer before the market opens will fill your head with information that subconsciously form strong biases and will keep your head nonobjective during the day, which eventually results in trading 5 times against an obvious trend for example.
2. Let Emotions Cool Down after Closing a Trade
Everyone has feelings after closing a trade in profit or loss. Having a simple rule, that prevents jumping in the next trade after a trade like waiting 5 minutes helps you to regain objectivity and don’t fall into revenge or hope trades.
3. Have no Expectations on the Day
Just looking at every daily bar you will see some days where no daytrader really can make money. Consider this in your expectation and don’t expect every day to be profitable. Just stick to your most important rules and your own analysis, strength and abilities. Everything will be fine.
4. Count Down Before Opening a Trade
Counting down from 5 to 1 (or counting up from 1 to 10 or something similar) will stop your current thinking and make you conscious about your decision of entering the market. If you catch yourself wanting to make a nonsense trade, you have actively stopped yourself from taking a bad trade, there you go.
5. Don’t Focus on the Money Aspect
Simply blend out the trading terminal where the current position balance is shown and focus on bps (basis points). Just trade through the whole session with your best effort and at the end of the day you can see the money in your account summary. Human beings somehow get attached to real $ amounts and this effects decision making in a bad way.