I wrote a blog recently debunking the idea that golf is 90% mental, and I want to expand that to where I believe the mental game fits in to your performance as a trader. Whether you are a golfer or a trader, your job is to execute. Whether that’s hitting the right shot, or making the right decision at the right time. The only difference is that a golfer uses their body to execute their strategy and a trader uses their mind.
So the question every trader has to answer is simple: what do I need to learn, what are the skills I need to train, and how can I best prepare myself to consistently execute the right shot or the right decision? First and foremost you need trading skill. The mental game can really only help you to become a better trader once you have a strategy based on your knowledge reading charts, technical analysis, and other skills.
In my last blog I said that if golf was 90% mental, then the Dali Lama would be an amazing golfer, but he isn’t. The mind is only so powerful. I say this, so you now I’m not one of those ‘gurus’ blowing smoke up your ass claiming that a positive mental attitude is what you need to be a successful trader. Bullshit. You need to know what the hell you’re doing. Without a trading strategy based on a foundation of knowledge, there is no way to prove your results aren’t just dumb luck. [Read more…]