How to build mental strength in trading?
In sports this is kind of easy: bring many elements of competition into your training.
With trading this kind of building mental strength is not really applicable. Because even if a demo account handles exactly like a real one, it isn’t the handling or technique but the emotional side of trading that makes all the difference.
The advice I want to share with you is based on something called “forecast training”.
In forecast training you predict your own performance; for example, “Out of the next ten 3-point shots, I’m going to hit four.” Do ten shots and compare the results with your forecast. The goal of forecast training is to match the perception of your performance with your real performance. By doing this, you will become more aware of your real performance, e.g. if you know that you constantly hit two out of ten 3-pointers you will know in the next game most of your 3-point shots will be misses.
This knowledge makes it emotionally incredibly helpful and over time builds tons of mental strength.
To make that applicable for trading we have to modify it a little bit. Forecast in Trading is dangerous so instead of learning about our real performance by prediction, we can easily look up our own trading performance in our trading journal or the data of our trading account.
Look up your numbers or if you don’t have a trading journal start one. And bring them into comprehensible numbers. By comprehensible numbers I mean really simple and tangible numbers something like X out of 10, 1 out of 4, or 2 every week. It has to be really easy to understand; don’t a percentage or similar because it isn’t tangible for your mind.
This tangibility in your numbers is what creates emotional stability as soon as your perception and real performance start to match up.
This way will lead you to more mental strength and fewer emotional bad beats in trading.
I hope you will try it and share your experiences with us all.
#mentalTrainer #getinthezone #EmotionlessTrading #Emotions #emotionsintrading
