The Mental Strategies of Top Traders: The Psychological Determinants of Trading Success

2.8. CHAPTER IN REVIEW

1. A detailed trading plan, which includes a unique variant perception and the path to getting paid, will allow you to focus limited psychological energy more efficiently.

2. In order to set a realistic but challenging goal:

   • Review what you have done in the past.

   • See what is repeatable.

   • Consider the resources available to you.

   • Understand the firm's standards.

   • Divide your annual goal into monthly or weekly targets.

3. To become a master trader, you need to not only set a goal but do everything possible to ensure that you reach that goal.

4. If you are insecure, cautious, fearful, overconfident, or even arrogant, developing a variant perception and defining a path to getting paid can help you overcome personality tendencies that may operate to hinder you from achieving maximum performance.

5. Whereas goal-directed individuals are often known as achievers, focused, avid learners, and extremely self-controlled individuals, to be a truly goal-oriented trader you need to make an increased effort during times of great stress.

6. Try to understand all the forces at work and plan for a variety of future scenarios so that you will be well prepared to take advantage of opportunities when the market begins to turn. Some ways in which you can do this are to:

   • Take responsibility for your own actions.

   • Analyze what went right and wrong in previous trades.

   • Be ready to switch gears when necessary.

   • Be realistic.

   • Capitalize on your strengths.

   • Stay focused.

7. Another way of formulating the goal setting conversation ...