How To Develop a Successful Trader's Mindset

Mastering strategies, understanding how the market works and moves, and performing extensive analysis, are not the only factors that come with being a successful trader. To benefit like the pros, you need to develop a winning mindset.

When starting out trading, most believe that they need to find a great trading strategy and from that will start pulling money into their account in no time. 

Pro traders know that is not the case; there are plenty of traders who utilise top strategies and well-designed systems, but still don’t win the race. Those traders who consistently see wins, are in the group of those who have mastered the correct psychological mindset; beliefs, frame of mind, and psychological characteristics are vital to getting the most out of trading the markets. 

Let’s check out what these traits are:

Positive mindset

The very best of traders are comfortable with taking risks. As losing trades is part of the package, those with low-risk tolerance, who cannot mentally accept losing trades, will not make it in the circle of winning traders. Trading doesn’t offer guaranteed returns, so your psychology needs to be prepared for this and your mind needs to be capable of swiftly adjusting to the ever-changing market conditions, without it affecting your mindset negatively. 


This is a key trait of many successful traders. Being disciplined with yourself, allows you to view the market objectively, despite how the actions of the market is affecting your account balance. This means keeping a cool head, and not getting excessively excited about winning trades, or despairing over losing trades; it’s all about balance, and controlling your emotions.

Discipline yourself to operate with risk-management in mind, and not become a reckless trader; carefully calculate risks before entering any trade. 


Winning traders have perfected the art of differentiating between a ‘bad trade’ and a trade that loses money. Knowing that losing money doesn’t typically mean it was a bad trade decision, is key to refining your trades to manage them to your favour. A good trade is based on whether it offers greater potential reward than risk, regardless of if it wins or loses. Look at your risk/reward ratio to determine whether you are making a good or bad trade, as opposed to looking at wins and losses only.

Control your emotions

Winning traders have trained their minds to not only accept losses, but to also not trade based on emotion. If you are having a bad day, you need to know not to place impulsive trades; when a trade isn’t working in your favour, you need to know when to stop; when you are desperate and greedy, you need to know to take a step back. Successful traders are in control and know exactly how to act towards their trading, based on their emotions. Once your emotions overtake your mind, you will no longer be trading for the win, you will be trading for inevitable loss. Informed decisions and making the best possible trading choices, needs confidence and positive, logical emotions. 

Reflection and evaluation

Successful traders regularly reflect on their history and evaluate their trading performance over time. Understanding that trading is a skill and not something you do on a whim, will give you a head start towards success. Through rigorous practice, trial and error, you will eliminate ego-invested trades and view the markets objectively to make the correct decisions.

Successful traders regularly review and evaluate their trading performance. They understand that trading is a skill that is only mastered through intense practice over time. Looking back on what you have learnt, through losses and wins, will allow you to find a strategy that works best for you and practice strict risk management by knowing your limits. 

Master the winning mindset...

Developing a successful traders mindset, requires effort and dedication. Master yourself and your trading actions, and learn not to trade on impulse. Taking into consideration the above, you can work your way towards creating the mindset of a winning trader to really reap the benefits of the markets, without losing yourself in the meantime.