There are 3 main things you need in order to make money in trading. Number One is a profitable trading strategy that you know actually works. If you have watched other videos on this channel, you know what trading strategy to choose. The second thing you need, which is just as important as a good strategy, is proper money management. I have talked about this in more detail in one of the recent videos. And the third most important thing you need to become a profitable trader, is the proper trading mindset. As you probably know, many people come to trading with a get rich quick mindset. Trading is not a get rich quick scheme, for most people, it’s a lose money quick scheme. You see, on the internet, people like to watch exciting stuff. So if one person makes a ton of profit in a very short period of time, luckily or by using a strategy, it’s common for people to show interest in that story compared to someone who made the same amount slowly but consistently. Because of this, someone who has never traded in their life, can think that the stock market and forex is the place where people get rich quickly. But the truth is, trading is just like any other business or profession. Now don’t get confused and apply what I just said on the recent market crash. Because many noobs made more money than some experienced traders during the recent stock market crash. All you had to do was add 2 + 2 and money appeared like magic, and that’s how many people who never traded in their life made money during this market crash. But the stock market does not crash every single day. So in normal market conditions, trading is just like any other profession. For example, to become an engineer, you first have to spend time studying engineering right? But in trading, people don’t think like that, many people don’t want to spend time understanding something they have never traded before. Everyone wants to get rich quick. Sure, you can get rich, but first spend time understanding why 90 percent of the traders lose money. If you do that, you will realize that most unsuccessful traders don’t follow proper money management, and they think with their emotions.

 

Now thinking with emotions is a very common thing among beginner traders. Before I started making money consistently in trading, I was also thinking with emotions. At the beginning, if a trade was lost, I couldn’t wait to take the next trade to recover the current loss, and because of this, I was taking stupid trades that I wouldn’t have taken if I wasn’t trying to recover my previous loss. So I did a little trick, and you can do a similar thing as well. Since I was not thinking clearly after a loss, I created a simple app that was based on the if or else statements. You see trading strategies are basically if or else statements. For example, if one indicator is giving a crossover signal, and if the price is above a moving average, it’s a buy signal. So what I did was, made an app that showed my strategy rules. It had a text and a single button. The text asked a question like, to go long, is the price above moving average? If Yes, press the button, if not, don’t do anything and sit back and relax. If the price is above the moving average, press the button, and then it shows the next rule of the strategy. The point is, if you think with your emotions while trading, write your strategy rules in a notepad, and read it like an if or else statement. This can help you stay focused on your strategy rules even if you lose multiple trades in a row, because writing my strategy rules down definitely helped as a beginner.

 

Now another thing professional traders do that beginners don’t, is play the waiting game. You see when you decide to wait for a good trading opportunity, you are deciding to save the money that you could have lost on a bad trade. If you are a beginner, and if you realize that you are not finding trades frequently even on a smaller time frame, then you might be on the right track. Because if you are not finding trades frequently, then you are most likely analyzing the market and are filtering bad market conditions. In other words, you are very close to becoming a profitable trader. If you don’t know how to filter bad markets and take high probability trades, you should watch the “5 steps trading strategy video” on the Trading Rush Channel. If you follow the steps mentioned in that video, you can increase the win rate of your trading strategy, and have less number of losses in a row.

 

Since we are talking about loss in trading, there is one thing you have to get used to in trading, which many beginner traders struggle with. You see, when you do a job, you get paid for the number of hours right? So in a job, you are not used to directly losing money out of your pocket right? In a normal scenario, you go to work, and get paid. But in trading, if you put in the work to take a position, there is a good chance of you losing the money you just had in your hands. Many people who are not used to risking money in order to make more money, get very uncomfortable after placing the trade. This can lead them into taking bigger losses and smaller profits. As a beginner trader, you have to understand that this is completely normal. If you follow proper money management with a good strategy, your chances of making money in the long run even after losing multiple trades in a row, are really good. For example, look at these different trading strategies you have seen tested 100 times on the Trading Rush Channel. Many of these strategies have multiple losing trades in a row, and still managed to make money in the end. So don’t focus on few winners and losers, focus on the big picture where proper money management and a profitable trading strategy makes you more money in trading.