Most traders watch the news channels like a hawk.
They are worry about what will happen when one President says something, or another President does something.
Now, take a deep breath and think.
Can you really control what comes out of the mouth of President Donald Trump at his Whitehouse now?
Can you really control the President who wanted to press the nuclear button and start a war?
Can you really control the outcome of major events like Brexit?
My short answer is – “No one can.”
Most traders are like Ducks
Most traders talk about everything and anything in the news channels. They are just like ducks. Making a lot of noises they don’t understand.
They would chat with one “duck” after another just to let other “ducks” know that they are “updated” with the latest news, latest happenings, and latest events.
What they don’t realize is that all late news, no matter how latest, are late. Period.
All financial markets have reacted and are priced-into the charts.
The problem is that “ducks” do not know how to tell time. They just mimic whatever they see and hear and maybe with some of their opinions added to make the late news more “current”. Nothing else.
True traders have the mindset of an eagle
True traders do not behave like ducks. They adopt the mindset of an eagle — Independent thinking. Far-sightedness. Self-confident. Self-assured.
They know the things they can control and the things that they cannot control.
They control what they can, and they mitigate the risks over events that they cannot control.
This level of thinking is NOT for everyone and this is the reason why true traders are so few and far between.
This level of thinking has grown small corporations into the list S&P 500.
This level of thinking has made billions for George Soros, and Warren Buffett etc.
I remember many years ago, I heard in an interview about my idol George Soros, and in that he mentioned that he would formulate a thesis around an event and based on that thesis, he would give instructions to his traders to enter the markets with his orders.
Thereafter, he would go back to his other office that is located about 40KM away from his trading office. He would stay there till an office boy would call on him and announce to him the outcome of his trade.
When asked by the journalist, “Why did he leave his trading office and not watch his trades?”
He answered, “If you do not have confidence in your thesis, then stay out of the markets. When you have entered the markets based on your thesis, there is nothing you can do anymore. You just let it run till the end of it to know if your thesis is right or wrong. This is how great traders are built.”
When I heard that statement from a legendary trader who almost broke the Bank of England in 16th Sept 1992, I told myself, “You have got me.”
Since then I started collecting and reading his books and trying to adopt his mindset as a trader. This is one of the best decisions I have ever made in my trading life.
Decisions. Decisions. Decision.
Most people fear making decisions. Traders are not spared.
They questioned, “What if I am wrong?”, “What if I lose money here?”
To me, these are stupid questions asked by people with mentality of ducks.
Eagles don’t asked questions like these.
Eagles ask, “What if this turn out to be true, where would that put me?”, “How much risk can I take or mitigate to get this through?”
These are the question eagles ask themselves when confronted with major issues and events.
They have a Brave Heart. They look for the tallest tree to build their nest. They know the risks exist and they also know with enough risk mitigation, they can build their nest and family there. Such confidence.
On the other hand, ducks look for the lowest ground to lay their eggs.
Your mindset determines your net worth
Most people have small or limited mindset with it comes to financial matters.
They tend to shrink their mind to the size of a pea. They worry too much. Understand too little. And do nothing at most. They just “quack, quack, quack” all day long.
We are born with a powerful mind and yet we use it in a limited and negative way mostly. It is time to change. It is time to use our mind in a positive and expansive way
And to be a true trader is the best way I know to craft you from a nobody trader to a somebody trader.
You net worth is limited by your mindset.
A trader with an expansive mindset can never grow small. On the other hand, a trader with a small mindset can Never grow big.
Decide to be a true trader today. To be an eagle and NOT a duck. No turning back.
Thank you for reading my article.
Profitable trading to you.
CEO & Founder, AlgoInsights