I get a lot of messages every day from new traders who tell me things like, “I really want to be a successful trader but I don’t know what I’m doing wrong,” or “I read so many books and wake up extra early every day but I can’t seem to make money.”
After reading these messages, I ask the same people the following questions:
- Did you create a proper schedule to remain consistent?
- Have you constructed a trading plan?
- Do you meditate at least once a day?
- Do you analyze your mistakes with a journal?
The answer to all of these questions and more is usually NO.
People expect change or results by simply feeding themselves more and more knowledge. In reality, while knowledge does play a role, it is not the most important one.
People fail to understand what it is that leads any normal person to become a millionaire by trading stocks. It’s not mere “luck,” as many would call it, so what is it that has led people to become so successful in the stock market?
The Human Mind.
Millionaire stock traders have several key attributes which are the main cause of their success. Each attribute links to their amazing mindset.
You can provide two people with the exact same information, but the turnout can be completely different, depending on each of their minds.
No one is born with any of these traits, it’s definitely something you or anyone else looking to excel can develop.
Number 1: Discipline
The word Discipline is thrown around a lot nowadays.
Of course, everyone knows the general definition which is to train a person to obey rules or a code of behavior.
While many people do know this, they fail to understand it.
Let me give you an example.
You work for a company that requires you to be at work every morning by 9:00 am SHARP. No excuses. Your boss is pretty strict about latecomers, so you make sure to be on time, every single day.
So let’s say you work 5 days a week, Monday — Friday, 9:00 am to 5:00 pm. You’re up every morning by about 7:00 am, and out of the house by 8:00 am. You arrive at the office at 8:45 am just to be on the safe side.
So it seems like you’ve got a pretty good structure going on, right?
One day you realize that you really want financial freedom, and to begin trading FULL TIME. Your boss sucks, and you read an amazing article about being your OWN boss, cool!
You think to yourself, “If I quit my job I’ll find myself more available to trade since I’m already up at 7 am every morning anyways.”
So you make the insane decision and finally quit your job. Yay…
This is where things go downhill.
You suddenly find yourself without a boss, without a schedule or even without a specific work structure.
No more waking up at 7 am.
No more being up and on your computer watching the markets by 9 am.
No more… structure.
Instead, you’re waking up at 1 pm every day unsure of what to do with your life.
Wait, wait, wait….. What went wrong?
It’s simple. You had absolutely no control over yourself. A case that lacks discipline.
Your brain was not wired in a way to follow a code of behavior, or structure on your own. A job is what provided you, with that structure that you might have falsely perceived as a discipline.
Your brain was not wired in a way to follow a code of behavior, or structure on your own.
A job is what provided you with that structure that you might have falsely perceived as a discipline.
Those people who are able to acquire a strong level of discipline are able to exceed in the Stock Market and acquire success. In comparison to those who fail to control their negative habits and traits.
You have to develop a strong mental framework that will ensure you will remain motivated and focused regardless of conflicts and mistakes.
Here’s how you can develop Self Discipline:
Start off by creating a trading plan, and STICKING TO IT. You need to set clear goals and have an execution plan.
A clear path will outline each step required for you to reach your goals.
When you’re trading you probably notice at times when you have a plan outlined and you actually don’t follow it.
Now discipline kicks in where you have to get your mind to a place where you are able to follow that plan you are able to execute the trades that you have laid out. If you don’t have that discipline you’re not going to be able to control yourself when you are in that situation to actually execute certain trades.
A special way to combat losing focus is through meditation. You must understand that we are not born with self-discipline. It is a trait which we, as humans, must learn as a daily practice.
Meditation will strengthen your willpower, which FUELS success.
Try it out. See how it goes, and remember to stay consistent.
Consistency plays a large role in developing discipline, which brings us into the second attribute which every Stock trading millionaire has acquired.
Number 2: Consistency.
It will ultimately help you in the long run by allowing you to build strong habits to succeed.
Think about it for a second.
A surgeon, to us, seems like a very sophisticated and high-end job. For those who are not surgeons, it’s impossible for us to do their job. But for a skilled surgeon, it’s nothing more than a routine which has been executed hundreds of times.
Brain surgery? No biggie.
It’s the same case for any successful trader. It seems like this high-end professional career that an outsider would know absolutely nothing about. But what people don’t realize is that both surgeons and stock traders, (as well as many other professional fields) have a consistent pattern in their procedures.
Consistency builds Habit.
Sticking to an effective trading method, or trading plan will provide you with the chance to succeed in the market. And even if you don’t succeed right away, you’ll be able to learn from your mistakes and keep going.
Switching between different methods or different styles will hurt you in the long run, and hold you back. Is that what you want?
No? I thought so. So stay consistent!
Here’s how you can develop consistency:
I’ve learned from a lot of people that it’s really difficult for them to remain consistent on just about anything. It definitely is much more difficult than it seems, but it isn’t impossible.
Start off by setting some realistic goals for yourself to understand what you want, and why you want it. Get a proper understanding of what your life would be like if you picked up this habit.
For instance, when I was first getting started in trading, I had a board in my room with images of everything I was working for. It included my family, a home, a car, and overall a better lifestyle. Every morning when I woke up I was reminded of my goals and it motivated me.
Next, I had a schedule of how my day should be going and what I had to do at specific times. It kept me on track and made sure that I wasn’t slacking on ANY task.
Write out your goals, remind yourself of them every morning, follow your schedule, and build POSITIVE habits.
If you want to drink more water, set an appointment on your calendar to chime once every two hours telling you to go drink a cup of water.
If you want to meditate every morning at 7:00 am, set an alarm to remind you.
Putting everything on your calendar or writing it down provides it with much more importance than by keeping it in your head.
Trust me, you’re going to forget. Write it down.
Get back up, and KEEP GOING.
Let’s face it. Building habits isn’t easy. You probably won’t stay consistent the first time you give it a go. No matter what level of commitment we have or even how strong our why is, we’re human. Stuff happens.
Accept that you failed, and just try again.
Number 3: Accountability.
Accountability is not stressed enough in the markets but will accelerate your performance, BIG TIME.
When working a 9–5 job, people are automatically held accountable for their actions considering they have someone constantly watching over them. That’s how things are always running smoothly in any successful business.
But what happens when there’s no one there to hold you accountable?
Most successful people have already come to the conclusion that when they are held accountable only to themselves, it does not prove to be as efficient. It’s easier to give up when no one’s there to make sure you’re on track.
But don’t worry… I have a solution for you.
All you have to do is team up with someone; a fellow trader, a friend, a family member, or anyone who you feel would be able to positively impact you in this matter. We’ll call this person your accountability coach.
Not only will an accountability coach boost performance, but it will also help you measure success and progress.
Your subconscious mind will be aware that you have to track and report your results to another person which will help you remain focused. You’ll be encouraged to set goals for yourself and achieve them, making this whole thing a positive experience.
There are many trading group-chats out there that will allow you to meet new people who would be thrilled to become a part of your journey. Each of you can hold one another accountable for the goals you set, and to ensure you’re both always on track.
So, what are you waiting for? Find your accountability coach now.
Number 4: Passion.
Do you need passion in order to succeed as a trader?
My answer is yes.
Overall, anyone who is passionate about what they do will be both happier and more productive in their career. The many extraordinary individuals who have become millionaires through stock trading are personally invested in and motivated by its mission.
“Choose a job you love, and you will never have to work a day in your life,”
Passion is one of the most controversial attributes, as many people tend to disagree with it. Mark Cuban, believes one of the greatest lies in life is to follow your passion. But I believe otherwise.
What most people can agree on, is that enjoying your career path in life is difficult to fake. Either you feel it, or you don’t. You spend most of your daily hours working, and if you are not passionate about what you do the entire day, then I doubt you’ll secure the results that you desire.
If you want to taste the flavor of success, you have to be passionate about whatever it is that you’re doing. If you want to trade simply to make money, I suggest you find another career path. Passion will help you to develop a growth mindset, intensify focus, enable creativity & innovation, and enhance your desire to Pursue EXCELLENCE.
Trade with passion, and watch your results excel. Trading without passion will just lead you to become uninterested the moment you make a mistake.