Mental Toughness in Trading (Thought of the Day)

Mental Toughness in Trading (Thought of the Day)

I thought I’d do a little video about
what I’ve been thinking about today. so, my thought of the day is all about how you
achieve a successful trading career over the long term. So, I think if you ask most
people what they want to achieve with their trading they’re probably going to
say that they want to be successful over a longer period of time they don’t just
want to be successful in the short term and then not be able to repeat it and
replicate it again they want to be able to do it consistently over the long term
to make a career out of it. So when we think about that when we think about
having a long term successful career in trading what are the ingredients that
are going to help us to achieve that? What’s going to help us get there. Of
course you need to know how to trade you need to have a good system probably be
able to optimize and improve all the time because when the markets are
changing you need to make sure your strategies adapting and always improving
as well. But as we know when it comes to trading it gets quoted all the time that
it’s about 80% of something psychological. Like whatever percentage you want to put
on it the majority of the ingredients for success in trading come down to
psychological factors. Now of course you can think about things like you know
being having the discipline to wait for the right trades being patient and not
having the fear of missing out and not closing trades to early not getting too
nervous the whole greed fear complex and everything like that but actually I
think it comes down to a lot more than just those things. I think that you have
to have the mental toughness to be able to replicate exactly what you’re doing
again and again and again that’s what takes real discipline the discipline
isn’t in waiting for an individual trade the discipline is in being able
to do the same thing day after day after day. I mean it was the difference between
making 300 pounds in the next three months and making 10,000 pounds in a
year from your trading? Now of course there are differences like maybe you
would approach it differently with different trades maybe different
position sizes maybe different starting capital but there’s one thing that’s not
going to be different between these two different scenarios and with practically
any scenario in trading is that you have to take it one trade at a time so
therefore the the sort of key to success in trading and having a long term career
is being able to just focus on one trade at a time. Now those of you that have
been watching this channel for a while know that I take inspiration and lesson
from other fields outside of trading and finance I think that a lot of time we
have blinkers on and think of trading as something that’s unique and unlike
anything else when the reality is when you’re learning to trade and when you’re
trading it’s very similar to other skills and activities so looking at
other areas where we can learn something from that and adapt it for our trading I
decided to take a look at tennis because in tennis you have to have that
steely determination it’s just you and your opponent you’re on your own you
haven’t got this support network around you when you’re playing and therefore if
we look at people who have been successful over the long term in tennis
you’re looking at people like Roger Federer Serena Williams and so on and in
fact I saw an interview with Serena Williams where she was talking about the
mental toughness it takes to have a successful career in tennis. Now
surprisingly considering tennis is so physical and you’ve got to have like
athletic ability as well as cognitive ability and so on she actually said that
she believes tennis is 80% psychological and 20% about the skill and she put a
massive emphasis on the mental toughness she said that there have been situations
where she’s down in the game five love and she says the only way you can come
back from losing in a match is to focus on one point at a time. If you’re behind
focus on one point at a time don’t focus on the score don’t focus on anything
else just focus on that sole point and then the next one and then the next one
only as they come. If you start thinking about how far you’re down then you’re
never going to have the mental toughness to come back you’re going to
just give in so she takes it one point at a time and in fact she told a story
about this one time that she was losing and it was in the final she was the
number one seed in the world at that time and someone shouted from the crowd
something like you know deserved to be number one and so she stopped and looked
at him and said because of you now I’m going to win this match and she won
every single point after that it was just focusing on one point at a time and
I think this is important with our trading is that we don’t get carried
away when I talk to people like those someone was talking to this week and
they’re talking about their trading they know who they are they were saying that
they weren’t for a period where they were winning a lot and I thought trading
is easy then the very next week they got Slams they lost out and it was just kind
of continued after that and it’s these source streaks of winning trades and
then you sort of carry on like get complacent and think it’s
continue and then you have your losing trade moments where then you start
getting nervous things do nothing right it’s because you’re focusing on the
performance of that period of time rather than each individual trade at the
end of the day where if your last trade was a losing one or a winning one your
next trade is all that matters every time next trade next trade next
trade and so I think if you’ve got the mental toughness to be able to focus on
one trade at a time for the next ten years then you’re going to be successful
in your trading and whatever it is that you’re wanting to make thousands of
pounds a month or thousands of pounds a year or whatever it is
you’re only going to get there one trade at a time so that’s what your
focus got to be on every single day so the question is do you have the
discipline and the mental toughness to actually do that and make that a reality
so that’s my little thoughts of the day that’s what I think is an underlying
factor in success in trading hope you take it on board and use it to your
advantage to have a great success for daily trading and then think about it
for next week’s you have a great week then take care guys


  • Vipul Yadav

    May 18, 2018

    Got the point O:-)

  • Lunkyful

    May 18, 2018

    So true, I have just over 13 months experience and my profitability have risen tremendously this year but the first 12 months of learning was the hardest due to losing trades over and over again.

  • Musti

    May 18, 2018

    I'm liking this new video format Nicholas, I am looking forward to the future videos

  • Kazuto Klaus

    May 18, 2018

    Great video Niki. Focusing on one trade at a time is more like trading in the now? I've been doing that lately and I've seen much improvement in my trading.

  • ram singh

    May 18, 2018

    are u half indian??

  • FaceYourFears

    May 18, 2018

    Love it. One trade at a time


    May 18, 2018

    Thank you.

  • Boris Anev

    May 18, 2018

    One Good Trade at a time! Great video!

  • Ja'adul Amien Jasri

    May 19, 2018

    damn good advice bro…focusing on one trade at a time again and again.Maybe its same like boxing. 1-2 combo instead of 1-4 combo. With timing and defense, 1-2 can knock a champion.

  • Tshiamo Setshedi

    May 22, 2018

    Quality Video Nicholas. I definitely agree with you. A football manager will say the same things to his players to just focus on each game, and not worry too much about where they are or where they desire to be on the the league table. The effort put into each individual game will determine their overall success. Thank you Bro.

  • Ian Masesar

    May 23, 2018

    Great advice!

  • adnan Adnan

    May 28, 2018

    Proces over income

  • Janis jjj

    June 5, 2018

    That's true awesome video bro💪

  • mralanpo1

    June 21, 2018

    This is the best piece of advice one can ever have in their trading career, thanks Nic!

  • Claudia Aquino

    April 18, 2019

    Love these videos!
    Thank you so much!

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    October 22, 2019

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