Every now and then, you’ll hear someone talk about trading psychology — also known as mindset. It usually sounds something like:
“It’s the most important thing you need to master in trading.”
Some even break it down into numbers: trading success is 10% strategy, 20% risk management, and 70% psychology. And they’re not wrong — psychology plays a massive role. Once you begin to master it, everything in trading becomes a little easier.
When I started, my trading psychology was at zero — maybe even negative. Back then, I had a very skewed view of what "trading psychology" looked like. I thought it meant being robotic, emotionless, or maybe even edgy — like someone covered in tattoos, cursing wildly, or chain-smoking weed. That’s the impression I got from some of the “gurus” I watched (no names mentioned).
But as I evolved and matured in the craft, I discovered something deeper and simpler: trading psychology is not about appearances or acting tough, it's simply following through with what you said you will do - which is manifested in the mental strength and grit of a trader. Let me explain how these two powerful concepts actually play out in a trader’s life.
Mental Strength
Mental strength is your ability to stay grounded in the face of challenges — especially when things don’t go your way. And in trading, things often won’t.
You might take a trade expecting price to move swiftly to your take-profit level. But more often than not, the market will move slowly, hesitating, pulling back more often than moving straight in your direction, — sometimes never getting there at all. In these moments, the question is: Do you remain patient and composed, or do you start second-guessing yourself and your plan/system?
As a trader your main objective is implementing your system/edge as efficiently as possible with zero expectations about the outcome. Yes, zero expectations because you can't know for sure if and how price will go to your intended direction. What you can know is that over a large sample size of trades, your system should be able to yield a positive expectancy - (ofcourse based on performance data you have collected). So your job is to execute your plan with precision and discipline at all time.
Going deeper, trading still suffers from a negative reputation. Many outsiders see it as gambling or a get-rich-quick scheme. If you're just starting out, chances are few people will understand — or even support — what you’re doing. You might feel alone in your journey. In such times, your belief in yourself and your system might be all you’ve got. And if you begin to doubt yourself too often, others will too. That doesn’t mean you should lie to yourself about your results — it just means your conviction has to be stronger than the noise.
Mental Grit
Like any business, trading comes with ups and downs. There will be good days, bad days, and many average days in between. What you want is for your long-term equity curve to trend upward, even if the journey is bumpy.But that steady growth isn’t possible without clarity:
- Clarity about your system
- Clarity about your plan
- Clarity about yourself
And you can’t get that clarity unless you’ve collected and studied enough performance data to back it. When you start trading, every challenge you face is a chance to learn. So document it. Gather as much data as possible. Study it. Reach out to others in the industry. Think like a problem solver.
If a trade goes wrong, don’t complain, don't blame "smart money" or "institutional traders"— ask why. Explore what you could’ve done differently. Trading is like a marathon. You might not make consistent profits in your first two — or even three years. But when the profits eventually start coming, all those painful months will suddenly become distant memories. Your determination to keep going, to keep learning, and to keep solving problems — that will be your most valuable asset.
Final Thoughts
Thankfully, I didn’t need a tattoo, a blunt, or a bad-boy persona to succeed in trading (although, I’ll admit I slurred a few words now and then 😅). And I’m not saying those things are inherently wrong — I’m just saying they’re not the key to mastering your mindset. They’re distractions from the real work that has to be done.
So the next time you hear someone talk about trading psychology, remember: It’s not about acting emotionless — it’s about the resilience in doing what you said you will do. It’s not about faking confidence — it’s about facing adversity with strength and clarity.
And above all, keep collecting performance data. It’s the mirror that reflects your progress and the compass that will guide your growth.
