Trading on the global financial markets is a mental game.

Your decisions may, and will be affected by your psychological state. This is the reason most traders, who are successful with their demo accounts later fail. The technical side of trading, albeit very complicated can be learn, if you invest enough effort and time. The bad news is that you may never reach the level of psychological stability, you need to be among the 10% of traders who win constantly.

Believe me, what you are dealing with can even be dangerous – not only for your financial, but also physical health. Fear and greed move the markets and ultimately you will be consumed by them. Some of you may be thinking to themselves, while reading these lines: “This does not imply to me. I`m not greedy, nor fearful”. Believe me – you are. There will be times when you can`t recognize yourself. You will make stupid mistakes, which you have forbidden yourself from doing tens of times. You will end up asking yourself: “Why!?! What the hell am I doing!?!” Trading is like a distorting mirror, which amplifies your worst traits and multiplies them tenfold.

You will meet despair after a losing trade and euphoria after a winning one. You should know, that you will be riding this emotional roller coaster for a very long time.

After you spend several months trading (if you last that long), you will know if trading is suitable for you. Don`t expect to be winners straight away. It would be a success if you have the same amount you started with in your account, after six months. Most rookie traders blow out their first accounts completely. Then comes the moment of truth. Some say “no one can make money, trading”. That way they are looking for an excuse, to leave the financial markets which have cost them so much pain and stress. There is no problem in being one of them – just return to your ordinary life. If you are a different type of person, the one who never gives up, start reading and learning and you will know if this is your destiny. You will say to yourself: “Failure is not an option!” This is the first step every market wizard has taken. George Soros, Warren Buffet, Paul Tudor Jones, Linda Raschke, Jesse Livermore, Larry Williams, Al Brooks, Nicolas Darvas and many others. They all started this way. Some of them have even gone bankrupt, multiple times. They had lost fortunes, just to win them back again from the market, with a little interest, of course. What is the common thing among them? They never gave up.

If you have made the decision to succeed by putting in the necessary effort, it`s time to rethink your point of view on trading. Now is the time you have to realize the truth about trading – it is a long-term game. You have to become a master of risk. You have to build psychological strength through practice. You have to take winners and losers unemotionally. You have to fight day by day, trying to get more winning trades, than losing ones. If you don`t realize that the game is long-term, you will be crushed by your psychology. You will take profits too early on your winning trades and hold losers too long, hoping they will turn around. Remember that winning traders don`t pray and hope and they never risk their entire careers in one trade (Every single trade involves risk. No one can be certain what is going to happen in the future).

Professional traders are people like you. They also deal with these problems daily. You can find an illustration if you read Nicolas Darvas` book “How I Made 2000000 in the Stock Market“. He nagged to overcome the difficulties. You can also familiarize yourself with the story of Jesse Livermore, who makes an unheard of fortune in the early 20-th century and then goes broke because of one bad position, gone out of control. He breaks all his rules in that trade. Years later he makes a fortune again, becoming one of the richest men in America. Despite his unique talent he never manages to handle the psychological aspect of trading. He then goes broke again and commits suicide.

I will go back to the beginning of the article. If you are asked: “Do you want to earn huge amounts of money trading the financial markets, making efforts for only a few minutes a day?”, most of you probably will say they do. Reality is different. We are all taught we need to work, to get a reward. This is why many people sabotage themselves unconsciously. They don`t realize that once they get to a certain level of experience, it is enough to take a look at the market once a day. If you trade long-term, you only need patience, however unnatural that may seem to you. In trading, unlike other businesses, it`s often best to do nothing. Waiting for a good opportunity is better, because every bad decision leads to a loss of money. You can spend the time in which you are not in front of the charts for learning new techniques or improving your psychological condition. Live a balanced life, have fun and have different hobbies. This is the only way you will be able to cope with the stress and make the best decisions.

Don`t forget that the real trader has never achieved his goal. He knows there always is something more to learn. He doesn`t stop working towards improving his skills. I recommend you watch this interview, taken from Don Miller: link. . He says it took him “close to a decade” to become a consistent winner, but he still doesn`t think he has “figured out” the market.

Trade from the viewpoint of the trader you want to be, not the one you are now.

If you think and behave like a professional trader, you will become one without noticing.