What would you do if you blew up your trading account?
Would you give in to despair, head slumped in front of your screen, sell your gaming laptop, swear off trading, and walk away…
Or would you look inside for the spark that excited you in the first place?
Could you dig deep to push past the feelings of self-doubt and use your mistakes to improve your skills?
The challenge wasn’t figuring out how to turn his trading around…
It was how to cultivate the right mindset that keeps you going.
Every trader faces naysayers and haters along the way.
Sometimes it’s from an online troll.
Sometimes it comes from friends or family.
More often, it comes from self-doubt.
You must be willing and able to shrug off the emotional weight and keep working to improve your skills.
And I can’t think of anyone who’s done this better than Tim.
Right now, he’s balancing two new-born infants during the day while building trading algos at night.
At our trading conference, Tim told traders how he created and maintained a positive attitude.
His tips may be simple, but they are invaluable.
And here are a few key points to write on sticky notes that you can keep around your desk.
You’re in Good Company
Tim isn’t the only one who blew up his account.
In fact, many successful traders go through several accounts before they hit their stride.
Now, that’s not something I want for you or anyone.
I make it a point to teach my students how to avoid this while still improving their skills.
But let’s face it…
We all struggle from time to time.
Know that you’re not alone.
It happens to EVERYONE.
That huge drawdown you took?
Fat-fingered a trade?
Been there. Done that.
How we handle these situations is far more important than they are.
What’s Your Process
Tim asked the group a simple question…
What’s your process when you make a mistake?
Developing a structured method to analyze trades helps keep emotions at bay.
Sometimes, trades fail because we screw up. Others fail because that’s what happens.
We correct the problems we cause.
When trades fail on their own, there’s little to be done now.
However, keep tracking your trades and analyzing the data.
You’ll be surprised how many opportunities and trends you find when you take a step back.
Set Time Aside
With two young babies to take care of, Tim doesn’t have the luxury to day trade markets like he used to.
But that doesn’t mean he doesn’t study the charts.
Right now, he’s on a quest to build algorithms that automate his trading, freeing him up to spend more time with his family.
While he’s seen some success, his manual trades are still better.
The key here is that Tim still finds time to work on trading.
He spends a few hours plowing through charts, looking at setups, and dissecting the news every night.
That’s totally fine.
We all lead busy lives.
However, successful traders regularly schedule blocks to focus solely on trading.
Studying isn’t just about the quantity of time you spend. It’s about the quality.
Don’t Get Discouraged
Markets go through easy periods and they go through rough patches.
Right now, volatility and chop make even the simplest setups more difficult.
Know that things can and will change.
Just because you hit a string of losing trades or can’t find any setups doesn’t mean you’re a bad trader.
These things can and will happen no matter how much experience you have.
If you find trading has become exceptionally stressful, then take a break.
Come back when you’re refreshed and ready to go.
Trading should be fun.
With a positive attitude and the right mindset, you’ll go further than you could ever imagine.