Top 3 Mental Blocks That Could Be Holding You Back

September 26, 2023

Trading, at a minimum, is 90% mental.

Our minds are powerful things and can really cause some issues when we are trading, eliciting emotions and biases that fog our decision-making abilities at the screens on frequent occasions.

There is a bunch of mental blocks that can get in the way of you achieving consistency in the trading world, and today we will be breaking down the top 3 mental blocks that are holding you back.

Let’s dive in.

  1. The Need For Perfection

Naturally, we want to excel at anything we do and be perfect. We want to get the perfect entry and exit, and while you are looking to enter, exit, or maximize a current position, that mentality will hurt you. You will never top and bottom tick a stock time and time again. Your entries and exits will always be slightly off the true inflection point.

Understanding this truth and being satisfied with taking the ‘meat of the move’ on your trades will allow you to see moves clearly. Stop chasing perfection, and confidently place your orders where you are supposed to without worrying if this is the top or bottom.

  1. You Aren’t Comfortable With Losing

You will never win 100% of your trades. This goes hand in hand with wanting to be ‘perfect’ but accepting that you will have tons losing trades over the course of your career is crucial. Being able to trade with as minimal amount of emotions and fears as possible will allow you to make clear decisions at the screens, and being ok with losing is a step in that direction. Understand that losing is a crucial part of the game and will only help you grow in the long run. Log your losses, use them as lessons, and move forward.

  1. Always Looking For Something New & Stimulating

Our minds always need a ‘fix’. We long for excitement and stimulation. Trading fills that void. Learning new strategies fills that void. The gift and curse of trading is that there are so many ways to make money. There are so many strategies out there to learn and utilize that can make you money that is is way overwhelming. As a new trader, you may want to system hop all the time as your mind continues to long for something new and different.

You must keep yourself from jumping from system to system. There is nothing wrong with continuing to study and learn new things, but completely changing your strategy every single week will just delay your progress greatly. Find what works for you, stick to it, and optimize that. Stop jumping around looking for the perfect indicator or strategy every day. Find one thing and master it.

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