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One common mistake a lot of aspiring traders tend to fall into is to focus on what they get and not how they get it.
The key to long-term success is to always focus on the process and not on the results. You need to pay attention to your actions to know how to repeat a successful trading move.
If you don't evaluate how you succeed or how you failed, you have no way of understanding how to do it again.
Why Is It Bad To Focus On The Money?
Focusing on the money and how much you win or lose is the number one mistake many traders do very often. It is difficult to focus on taking the right steps and following your trading plans and strategies if you are emotionally unstable, probably because you are entering many trades every day or risking too much money.
You don't need to focus on how much money you are supposed to make but instead focus on how to do it. The first thing you are going to need is effective risk management which will help you to keep your focus on the important things. Once focusing on the process becomes a habit, taking the right steps to select the best trades will only become easier.
Winning Rates Don't Matter In The End
One of the best strategies for any trader is to focus on knowing when to exit trades and keep your loses small. This tip doesn't mean that you should focus entirely on your winning rates. You can still make a lot of money even if your losses are more frequent than your wins.
Most people tend to think that what is important is to win more times than they lose. But, in reality, they lose more when they don’t identify one huge losing trade which wipes out all the profits they made on their 20 small winning trades. This is often how people lose money quickly after a good time of making money which is probably also one of the most damaging experiences to a trader’s mind.
Forget About Hope
It sounds harsh and sometimes not so encouraging, but at the end of the day is a reality a good trader faces every day. A lot of people jump in thinking they will make a certain amount of money in a specific time range and in reality that is not guaranteed at all for anybody. You need to focus on your strategies and how you are planning your trading process. Do this before you start dreaming about how much money you think you will make in a month.
Anyone serious about trading knows this reality and works to achieve their practical goals instead of dreaming about significant amounts of money without preparation.
A big tip is to learn how to adapt quickly to sudden changes and be able to use different approaches depending on the situation.
Focus On Improving Yourself, Not Your Results
As our final advice, remember that trading is about balance and conquering your emotions and strategies.
Your focus should be on becoming a better trader and understanding the right moves and mindsets. To be a good trader, you must allow yourself to learn about emotional intelligence, building a stable routine and learning more and more about trading, different trading methods and strategies.
Once you improved these points and start working on becoming a genuine successful trader, you will begin to see the positive results immediately.
