Top 5 Trading Psychological Tips For Prop Traders

Beginner Questions Trading Psychology
1

There are areas of expertise that can be built into your habits and way of thinking that will help you become a better trader. As part of our educational resources, we explain how trading psychology can create a great effect. Many successful traders who have used our funding programme are proof of this. In this article, we’ll talk about the top five psychological factors for prop traders.

1. Discipline

This is a definite point to begin with. A strong work ethic goes hand in hand with discipline. You will have limitless trading opportunities, but also have to work long hours. You must put in an immense effort.

As you already know, you must have a solid trading strategy, which starts with thorough market research. If you’re a day trader, you’ll need to plan ahead and develop trade possibilities to ensure you’re prepared for the unpredictability of the market. All traders need to make sure that their methods are written down in the journal correctly so that they can be looked at later.

2. Adaptability

You must be ready for extreme volatility as well as the calmness of the market. The market state requires you to change yourself along with it.

Let’s imagine you’re looking for a downtrend entry, but it’s evident the market isn’t going down. You must be flexible enough to follow the trend rather than stick to your original plan and assume the market will crash because you predicted it.

3. Patience

Patience is another tip that must be mentioned. If the market does not move in your favour or towards your stop, you will definitely panic. But this panic mood should never hamper your trading game.

You need patience to avoid scattering your trading set-up. Have faith in yourself. Try to change the flow of the market and stop taking Revenge Trading. If you’re mistaken, just accept the loss and scrutinize to figure out what went wrong and what could have been done differently.

4. Independence

Initially, you’ll have to learn a lot about trading, and it’s fine to ask for help in the early days. But as you grow, you must learn enough to be able to trade on your own, without any help from anywhere, without the assistance of a guide. Join some of the big traders’ communities to trade and learn with the professionals. Eventually, confidence will grow in you, which it must do sooner or later.

5. Accountability

You must hold yourself accountable for your losses in the same way that you hold yourself accountable for your winnings.

This can be done by setting realistic goals and analyzing them. You can only achieve this if you stick to #1 and keep your records organized. There are traders who have coaches or mentors in this regard.

There you go. Be the master of your own decision-making in trading. If your trading journal doesn’t say to take a trade, don’t take the risk. Stop revenge-trading immediately if you suffer a significant loss. Don’t let your emotions control your trading. Instead, focus on your trading strategies and these psychological behaviors.

3 Likes
2

This is so precise and insightful. However, there are near to impossible to be strictly maintained all the time. The first thing i learned about trading while I was into Stocks was keeping notebook journal. The time has passed and now i keep an ipad, still into journaling.,. thanks for this post by the way.

1 Like
3

Thanks for your appreciation.

1 Like
4

Hello there OP you seem to be a part of the prop firm with your name. I have a question.
If I make 10 trades using .0.01 lot sizes and I see a beautiful setup which prompts me to change my lot size to 2 why am I penalized for consistency?
Al the above is assuming I win all the trades. This seems to simply be a means to ensure less people pass the challenge as the only aim should be to make money.

2 Likes
5

Hello there,
With our Evaluation Model, there are no limitations on your lot size.
If you are an Express model trader, then just make sure to abide by the upper and lower lot limits for consistency.

1 Like
6

Amazing insight! I think it’s important to pay attention to all of these psychological aspects.

1 Like
7

It is crucial to take breaks frequently, whether you are a beginner trader or a pro trader, in my opinion. Any emotional tension you may be experiencing might be relieved by taking breaks to unwind your head.This is especially crucial following a difficult trading session or a string of losses. Simply leave your trade terminal and do something else for a while if you feel as though your emotions are starting to control you.

1 Like
8

You should only ever trade amounts you can afford to lose every day, regardless of your mood or what is going on in your life. Everyone can’t really afford to take a loss, of course, but if you have a certain amount of funds set aside that you’re willing to give up in order to pursue significant gains, you should start to feel better as the day goes on. It’s crucial to stick to that specific percentage.

10

Exactly. We always train our traders according to this method. Trading should be taken as a full-time job, like an 8-hour working day. You should rest and complete your chores for the majority of the hours of the day and trade just during the preferred times, like the opening or overlapped sessions. so that you can extract the most profit out of the market. This business should never be taken as an obsession, but rather a profession.

11

Absolutely. Only the traders who went through the losses can understand how important it is to maintain a certain risk management strategy or trading plan on a day to day basis. Also, following a trading plan with proper discipline ensures mental clarity. We really appreciate your understanding.

1 Like
12

Thank you for the precise information. These trading tips really make a difference in a trader’s life.

1 Like
13

Thank you Carroll for your appreciation.

14

Don’t get emotional while trading. There should not b any room for emotion and greed in you.

2 Likes