Successful Trader Psychology and Behaviour

Trading physiology is the main part of trading because 90% of trading is physiology, and 10% is techniques. Many people only learn techniques. They do not want to understand physiology, so many people lose money in trades.

Trading Psychology helps you to build discipline, control emotions, and make informed decisions.

A professional trader always uses trading psychology to win a trade but a beginner always finds a strategy to win a trade. So, trading psychology also helps us to win every trade. 

What is trading psychology?

Trading psychology means, that when a trader trades in the market, what is his mindset, what emotions does he face, how does he change his way of thinking, is he emotionally and mentally strong or does he get out of the trade due to fear or greed? 

In trading psychology, we generally try to understand the behavior of the trader and understand his emotions. So, how does it change the mind? We try to understand it. This means the technique we use to understand the mental state of a trader, we call it trading psychology.

Let's start. I will tell you about the psychology and behavior of a successful trader, according to trading psychology, what are their habits, and what are their qualities, which can make every trader a successful trader. In this article, you will understand what is the mindset of a successful trader, and his thinking process.

What does he do so that he is constantly successful in trading, friends who are successful in trading, know this rule of trading psychology and also understand that trading means trading is 90% waiting and just 10% trading, which means according to trading psychology trading is a game of 90% waiting and only 10% trading, 90% waiting means waiting for the technical to be made, waiting for the breakout, waiting for the indicator to indicate buying or selling, waiting for a chart pattern or waiting for the candlestick pattern to be made, waiting for the indicator to indicate buying or selling, so the first quality that should be in a successful trader is:

1. Patience:

If you want to be a successful trader, then it is very important to have patience because the patience صبر inside you decides whether you will become a winner or a loser in trading if you do not have patience inside you, then you should stay as far as possible from the share market, some people consider the share market as a get-rich-quick scheme, how much control does your mindset have on yourself when you have a profit or loss during trading, how do you do risk management, how do you stop yourself from being afraid or greedy, or how do you stop these emotions from overpowering you during trade or trading, to learn all these skills, it is very important to keep the trader, patient, like if you are looking at a chart in which you can see the possibility of a breakout.

Example of patience 

If a share goes above Rs. 205, then there will be a breakout in it, and now the share is running at Rs. 203, so at this time you do not have to think that the share is getting Rs. 2 cheaper, so why not buy it now, you have to be patient at this place, let the breakout happen, wait for the candle to close, when that share goes above Rs. 205 and closes at Rs. 206 or Rs. 207, after that you can trade at Rs. 207 or Rs. 208 when you do trading like this, then it will be a sign of wisdom and patience.

Unsuccessful traders have such a lack of patience that even before a technical occurs in the chart, it becomes a pattern in their mind, do you understand how an unsuccessful trader thinks, before there is a breakout in the chart, there is a breakout in the trader's mind, and he jumps into the trade as if a train is about to leave, and because of this hastiness, the trader has a loss, he is not able to become successful in trading.

When you take an entry in a trade, after that, you have to wait patiently for the hit of the target or stop loss, because the target and stop loss that you have set, must have been done by looking at some technical, you never have to change your target or stop loss out of fear or greed, if the stop loss is hitting, then let it happen, you do not have to change it when you have taken a trade according to a technical, then exit from the trade according to the same technical, before the trade and during the trade, keep your patience.

2. Confidence:

Self-confidence, a trader should have complete faith in his trading system, his trading plan, his trading strategy, or his research. 

• Building Confidence 

If you do not have complete faith then build your Confidence:

• Create your trading system, trading plan, trading strategy, or research, which you can trust 100%, and whose accuracy is at least 70%.

• Strictly follow your trading plan, stop loss, entry, profit, loss, and exits.

When you start trading, the most important thing is the trading plan you have made, you should have complete faith in your trading plan, you have to make entries, stop losses, and exit according to your trading plan, then whatever the world says, you should not care, you should have complete confidence اعتماد on your trading plan.

Example of confidence

If someone suggests buying or selling based on news, expert opinions, or advisory tips, ignore them. Trust the accuracy of your trading plan because the chart never lies.

 You should have complete self-confidence in your trading plan, because the chart you have analyzed from your trading plan, its accuracy is above 70%, and remember, the chart knows everything. If you do not have confidence in your trading plan, then the matter is different ok let me ask you a question.  

• Analogy:

Would you marry the person you love or the one chosen by someone else? Similarly, always rely on your trading plan rather than following random advice.

Avoid acting on tips like those from "Golu brother" or "Chotu brother." Instead, work exclusively on your well-researched trading plan.

• Confidence in Your Trading Plan

You have to work on your tip only. You will get complete confidence in any trading plan only when you make it yourself. Or if you have any trading plan, then you have to check every aspect of it. You have to test it at every level. 

Example of the trading plan

When you take entry in the trade, then you should know where, when, and why you have to take entry. What will be your stop loss in the trade? What is your logic behind putting a stop loss? Is your target and stop loss according to the 2% rule of risk-reward ratio or not? After making a trading plan, you have to back-test it. You have to test it by doing paper trading in the live market. If you have learned any trading strategy from anywhere, first back-test it. Test it by doing paper trading in the live market. Then when you have self-confidence in that trading system, your confidence builds, you start getting more than 70% accuracy, and then you go and work with it.

Now you must have understood how important it is to have confidence in your trading plan to become a successful trader. And this quality should be in every trader continuously and always.

4. Discipline in Trading

The next quality is Discipline نظم و ضبط. If you want to become a successful trader, then you have to bring discipline to your trading. Discipline in trading means that you have to follow the rules that you have made, and the trading system that you have built, with full discipline.

Example1:  If you break the Trading Discipline

Like many of you, there will be such traders who do intraday trading. And before taking the trade, you think that the day will end, before that we will close this trade. But when you start losing in the trade, then you think why not keep this trade pending for tomorrow? When the market comes to the price that I have bought, then I will exit the trade. Or when you start profiting in the trade, then you think why not keep this trade pending for tomorrow? When I will get more profit in the market tomorrow, then I will exit the trade. Do you understand how big a mistake you are making here? You have taken the trade according to intraday trading and are moving forward due to your fear and greed. With such actions, you are breaking your trading rules, and your trading discipline.

Example 2: The Importance of Discipline with Stop Loss

One more mistake like this, many of you traders do again and again, that is to put a stop loss. Many traders do not even put a stop to loss. Some traders have to say that when the price comes to my stop loss, then I will close the trade directly.

So see, I have to tell you here, that according to your trading rules, according to your trading plan, you should do entry, stop loss, and profit booking in the trade. That too with full discipline. Successful traders follow their trading rules and their trading plans with full discipline. You should also follow your trading rules and our trading plans with full discipline. You should follow with full discipline. Because we have come to be successful traders in this market, not gamblers.

4. Emotionless Trading

The next quality is emotionless trading بے حس. It means trading without any emotion. Friends, the traders who trade successfully in the market, who make good profits in this market, they all trade emotionlessly in this market. They never let their emotions dominate the trade or trading. You can say that their mindset is like a machine while trading. No matter what anyone says to them, they don't care. They never get influenced by anyone else while trading nor are they influenced by any news channel or broker's tip. They keep their mindset like a machine.

Example1: Emotionless Trading

If you do 1 plus 1 in a calculator, then it will tell you the answer. Whether you threaten the calculator, scare it, give it greed, or emotionally blackmail it, the calculator will still tell you that 1 plus 1 is 2. Even if 10 people from the calculator say that 1 plus 1 is 3, or the whole country says that, or the whole world says that, it doesn't matter how many people are saying what or what they are thinking. The calculator will tell you that 1 plus 1 is 2. Because there is no emotion in the calculator. That's why it doesn't tell you the wrong answer when it comes to emotions.

Similarly, a successful trader always stays away from emotional trading. He keeps his emotions under control. And when he can't keep his emotions under control, then he distances himself from trading. So that he doesn't take the wrong trade when it comes to emotions. 

Example 2: The Dangers of Breaking Trading Rules Based on Emotions

Many traders break the rules and think that the rules are made so that they can be broken. So see, this dialogue won't work in trading. If you break the rules in emotions, then this market will break you. And it will break you in such a way that you won't understand what is happening.

So now it is clear to you that if you want to become a successful trader, if you want to think like a successful trader, if you want to develop a mindset like a successful trader, then you should trade emotionally in the market. You should trade like a machine because emotionless trading is the biggest quality of a successful trader.

5. Self-Control in Trading

The next quality is self-control خود پر قابو پانا, which means controlling yourself. Friends, have you ever thought about how much control you have over yourself and your trade? When you do trading, then you have to make decisions in different situations. In those situations, we can feel our emotions very closely.

• The Limitations of Control in Trading

And in those situations, we can easily understand how much control we have over ourselves. If we look at it, our control is only limited to entering the trade. Once we enter the trade, we are dependent on the market's trend. We have no control over the market's trend. The market's trend can change at any time.

When we enter the trade, the situation can change in a second. It can also happen that you enter the market and then the market starts going against you. Yes, you heard it right. Doesn't it happen many times that you take a trade and it goes away from there? Some of you will say, yes, it happens many times. And some of you will say, it always happens to me. So, let me tell you here that you are not alone with whom this is happening. This happens with many traders. These situations are very interesting and very scary for a trader.

• The Role of Self-Control in Managing Losses

In such a situation, your self-control helps whether you are following the stop-loss in the trade or not. Here you have to decide to exit the trade. 

Friends, it is said in the market that your trade is not the one in which you have profit or loss. Trade means how much control you have over yourself in the market. Your trade is your reaction in the market. When you enter the trade and the situation suddenly goes against you, the trade you took based on this analysis is half.

All your losses in the trade are proved wrong. You made a mistake in your analysis. You did not choose the right share. Based on your calculation, the entry rate in the market started becoming wrong. Your trade started going down and your loss started increasing. Then you have to control yourself. You have to make a mistake and get out of the trade. We have this much control in the market.

• The Rule for Managing Losses and Profits with Control

When you can control yourself in such a situation, then you will be happy that you have a way to control the loss. A successful trader knows and understands how much loss he has to take in the market and how to control his loss. With this small thing, we know that we have to enter the trade. Before that, we have to do all our analysis. We do not have to make any mistakes in our analysis. Based on your analysis, your trading plan will be made. And according to that trading plan, you will enter the market.

And after taking the trade, we will not have any control over the market. Our control is only in our analysis. Where do we have to enter the market? This time. That's why we have to do our analysis with the same complexity. After entering the trade, there is a possibility that the market may open. The volume may increase. The trade may go upside down. Or the market may go sideways in the trade.

• Cut Your Losses, Let Your Profits Run

Always remember this. If you are in a trade with a loss or if you are in a trade where the loss is increasing, then follow this rule. Cut your losses fast. Let your profit run. That means if there is a loss in a trade, then cut it. Exit from that trade. And if there is a profit in a trade, then stay in that trade. In that trade, you have to use trading instructions.

For example, if there is a profit of 2000 rupees in a trade, then you have to use trading instructions. Your profit may be of 4000 rupees.

A successful trader always keeps an eye on the game. Wherever he can, he tries to control his trade. So you also try to control your trade to bring this quality of a successful trader into yourself.

6. Generalist Attribute: Overcoming Past Losses and Mistakes

The next quality is that of a generalist attribute عمومی صفت, which is trading without fear. Friends, remember, if you want to be a successful and professional trader in the market, then you have to bring this quality into yourself. When a trader works in the market with a generalist attribute, then his success ratio increases.

So the first thing is that it directs the trader in the market. The first reason is that your past is not good. In the past, without any knowledge, without any analysis, you have traded on the channels of people or through an advisory company. You have lost a lot in that trade. You have made so many losses in the past that you are afraid to trade in the market.

The second reason for this is that your position size is so big, meaning if your trade is opposite, then you can have a very big loss. So you have to understand here, that if you are afraid of trading, then you will have to do all those things with which you are afraid. Such as entering the trade without knowledge, entering the trade without analysis, trading in heavy quantities, trading without the stock market, trading in people's words, listening to people's words, and working on someone's advice.

You have to write down all your mistakes, and you have to try so that the mistakes you have made in the past will not be repeated.