I was watching the ski jumping at the winter Olympics. The announcer said that it is a simple move. Everyone knows how to do it. The challenge is that the mind is telling them that it is suicide. The winner is the one that trust their own skill more…

He went on to say that the difference between the top athletes is something that does not show up in slow motion. It is between their ears and it is their confidence.

It was repeated over and over again. It is a mental game!

It was not that the athletes had perfect runs. They had made mistakes. The difference was that they did not panic. They did not focus on their mistakes and thus they won their medals….

What does this have to do with trading?

Trading is also a mental game.

When you are cutting your winners short, stop yourself. Notice if you believe in yourself and your strategy. If you do, let your trade run longer.

Also, when you are letting your losers run, it is important to cut them short. It is not about wishing and hoping that it comes back. It is about believing that there are more opportunities to come!

How are you dealing with your state of mind? Are you managing them, or allowing them to dictate your actions?

The Olympians of trading are those who can harness their attitude!

Want to stay updated? Subscribe to the Mental Edge Trading blog

Tags: Human Capital Risk, Market Psychology, Market Success, Mental Edge, Money Management, Nazy Massoud, Qualitative Risk, Trading Emotions, Trading Success