The Psychology Of Trading – Stay Positive

In general I’m not really much for the whole “self-help movement” and all that stuff about “channeling” and “finding your spirit guide”. For the most part I’ve been far too busy working my ass off my entire life, to have stopped  and spent too much time “hoping for a miracle” or “rubbing some crystal”.

But I must say…for those that do find it beneficial  – “if it ain’t broken why fix it right”?

When it comes to trading though, I have learned that one must do everything in their power to stay positive and continue to move forward at any cost – as it’s those first few years that will break your spirit….and in turn your account.

As opposed to looking for “answers from above” I’ve found it helpful to read / and at times “re read” motivational anecdotes from some of the worlds most highly respected thinkers, visionaries and pioneers. In a sense “putting myself in their shoes” with the knowledge of what great obstacles they’ve overcome – and in turn the challenges I face.

I might suggest printing a number of these that strike you directly – and keeping them near your terminal for some “quick reference” when things get tough.

  • “Obstacles are those frightful things you see when you take your eyes off your goal.” – Henry Ford
  • “Only those who will risk going too far can possibly find out how far one can go.” -T.S. Eliot
  • “Great spirits have always encountered violent opposition from mediocre minds.” – Albert Einstein
  • “Knowing is not enough; we must apply. Willing is not enough; we must do.” – Goethe
  • “The best way out is always through.” – Robert Frost
  • “When the water starts boiling it is foolish to turn off the heat.” – Nelson Mandela
  • “It’s kind of fun to do the impossible.” – Walt Disney
  •  “Stay Hungry. Stay Foolish.” – Steve Jobs
  • “The distance between insanity and genius is measured only by success.” – Bruce Feirstein
  • “I hated every minute of training, but I said, ‘Don’t quit. Suffer now and live the rest of your life as a champion.’ ” – Muhammad Ali
  •  “I am always doing that which I cannot do, in order that I may learn how to do it.” – Pablo Picasso
  •  “I owe my success to having listened respectfully to the very best advice, and then going away and doing the exact opposite.” – G. K. Chesterton

You can find a pile of this stuff on the net, along with tonnes of other material on positive thinking etc, the point being – it’s unlikely that anything else you will choose to do in your life, will present you with the unique challenges trading has to offer.

You MUST stay positive.






2 Responses

  1. Superpositron (@superpositron) June 23, 2013 / 12:01 pm

    Great post Kong. I, like many noobs, a few years back I decided to jump in and figure it out because i thought i’d just buy when it looked low and short when it looked high. Taking those knocks hurt like hell and hurt my emotional capital and ego which then resulted in me putting on my REVENGE trade which was ALWAYS levered up like a mofo. F*ck you im getting my money back and im going to kill you in the process. GBPUSD dont care. When trades went bad id be grumpy. When it was good id be super happy. I was Mr Bipolar.

    More then my actual capital, I have learned (and still its a challenge) to protect my emotional capital AT ALL COSTS. If I protect my emotional capital, by proxy my actual trading capital is protected. To satisfy my insatiable appetite to BE IN A TRADE, or to REVENGE TRADE its useful to think of protecting emotional capital as a trade in itself.

    Also i found by tempering my expectations, losing the get rich quick mentality and maintaining a monk like discipline in executing my system goes along way to help me stay positive. Monks are pretty happy people. Especially the beer brewing Trappists.

    Still it’s HARD!!!!

    • Forex Kong June 23, 2013 / 12:06 pm

      Awesome Superpositron…..your story sounds very, very familiar!

      You’ve got this so right….as your emotional “capital” IS everything. Getting those emotions under control is the hardest part no doubt, and getting past that initial ” trial by fire” a must.

      Happy monks – I love it!

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