The psychological challenges of trading are often underestimated by new traders. When you first start to stake real money on your ability to research and act on buying shares in a company, it can feel demoralizing when the losses outweigh the wins, day-to-day. Especially at first. Learning how to weather these initial stress inducers and trust your instincts and your process is one of the most crucial skills a trader can develop.
Displaying that discipline doesn’t come easy. It’s natural to want to change things up, even drastically, when things aren’t going well. But when you ground your decisions in tried and true methods and lean on metrics that have mathematical wisdom behind them, it makes it easier to stay the course.
That’s why so many traders pursue online trading courses, which are more and more popular online. Those who take them say that they can’t imagine trading without the systems they’ve learned, and there are lots of success stories that come from a consistent approach.
Matt Choi, founder of Certus Trading, one of the more popular of the online trading courses, says that he, too, had a mentor when he was first starting out, and the benefits to his trading career have been incalculable.
“My mentor was George Fontanills, who traded long-term, medium-term, and also did day trading,” says Choi. “I learned what’s become the foundation of my trading style from him. He also had insights into the kind of trading that would best suit me and my skill set. That was so important to me, and it was one of the main reasons I wanted to become an educator and offer that kind of guidance to other people like me.”
Choi emphasizes in his courses that a sound mindset is just as important as a solid trading strategy. “When I see traders fail, it’s usually not from a lack of knowledge; it’s from an inability to handle the psychological challenges that come with trading. People have a hard time accepting imperfection.”
Trading is more like baseball in terms of percentages than people realize. If you get a hit one out of every four times you’re up, you’re doing pretty well. The stock market, like a great curve ball, is unpredictable. Not even the most seasoned veteran can see every twist.
“There’s no perfect system,” Choi continues. “When you stop expecting there to be, you can start to focus on managing risk and maintaining a balanced approach, rather than obsessing over every trade.”
When you do that, Choi says, you’re letting emotions take control. Fear of losing your stake leads to fear of failure in general and leads to drastic decisions. Conversely, when you get a burst of success, it’s hard not to let greed overtake you and overcommit.
“That roller coaster is why most traders fail or find themselves moving on. It’s hard to stay committed after a lot of losses.”
There are lots of strategies out there, and it can be tempting to jump from one to another. But more often than not, this only leads to more mistakes. The smarter play is to decide on a plan that works for you, become steeped in it, ideally with the guidance of a mentor, and apply it to your portfolio. Give it a full chance to succeed over time. Balance your strategy with a sensible risk management plan and learn to weather the losses when they come, in service of long-term success.
“One of the main benefits of our courses is simulating these outcomes and learning how to expect the unexpected and cope with the psychological stress that the market brings.”
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.