In the world of trading, many people think that success depends only
on technical analysis or following economic news. But
The truth is that there is a much more important factor, often ignored by beginners:
Mentality and psychology.
In this article, we will simply explain what are the most important ideas that are coming
from the book Trading in the Zone by Mark Douglas
and we will show you how to change your perspective on trading and build a winning mentality
In the long run.
First: Hesitation and fear of loss
The biggest enemy of the trader is himself. Hesitation, fear of loss,
and the desire to quickly compensate for a losing trade, these are all
emotions that make a person act against the plan they set.
The truth: The market has no emotion. Your success does not depend on
that you are always right, but rather depends on your commitment to your plan no matter
happened.
Second: Discipline is more important than intelligence
The biggest advantage you can have is not being the smartest person in the market,
but that you are the most disciplined one. This means entering and exiting the trade
Based on a specific strategy, without letting emotions
to be controlled by it.
The advice here: Build a system for yourself. Determine when to enter, and when
you should know when to take profits and when to accept losses without hesitation.
Third: Adjust your beliefs about trading
If you think you must win in every trade, or that the trade
Losing means you are a failure, so you are deceiving yourself. The trader
The professional sees every trade as part of a long series,
and thinks in probabilities, not certainties.
A simple example: The casino does not win because it bets on a game
One, but because he has a system and probabilities working in his favor.
in the long run.
Fourth: Probabilistic thinking
Every trade has a chance to succeed or fail, and there is no way
be 100% sure. Instead of asking "Will this trade win?"
Ask if this trade is the type that would be profitable in the long run
Will it be profitable if I stick to my plan?
Fifth: Practical steps to develop the mentality
1. Record all your trades: Success does not come from randomness. You must
Review yourself and see where you are making mistakes.
2. Review your beliefs: Are you afraid of loss? Do you enter
trades without a plan? Adjust this perspective.
3. Simulate (backtest): Before you enter with a strategy,
Test it on old data to ensure it is logical.
4. Learn to separate emotions from decisions: Every decision must be
based on a clear plan, not an internal feeling.
In summary
Successful trading is not a coincidence, and it not only requires analysis
is good. He needs a strong mentality, stable psychology, and discipline.
Severe. The book "Trading in the Zone" opens the door for you.
to understand the market in a new way, and it teaches you that success starts from
is within you before it appears on the screen.
If you are suffering from fear, or always hesitant, or feel that the market
against you, so this is evidence that you need to develop your mentality. Over time
and with training, you can build the mentality of a professional trader and reach
for the stability that makes trading a real success.