Having the right mindset matters in anything you do, some of the essentials of successful trading which fall under the mindset category are focus and motivation but without training, everything is useless.
Let me explain, in this basic metaphor, why training is important and I'll start it with a question, the question is, how do pro athletes, some of the highest paid individuals on the planet go broke and a large percentage of them bankrupt?
Obviously people have the best chance to succeed at something they have trained for... something they have consistently practiced. World class football players who play in the top European leagues are the best of the best and they are handsomely rewarded for their dedication and disciplined effort, but as much as they were trained to think to be the best, they weren't trained to be a millionaire, to be wealthy or to THINK like a millionaire.
Thinking like a millionaire is REQUIRED if one is going to REMAIN a millionaire once they achieve the technical definition of having a net worth of $1,000,000 or more but the problem with these guys is that they were only training their skills in the game, and not out of it.
So to summarize, thinking and training are two very important aspects of success in the markets, the football field and even the bedroom. If you are to become excellent at something you need to practice but to grow the motivation to practice you need to think (have the right mindset).
In this basic article I will be giving you 3 excellent tips on how you can improve your mindset and start becoming a winner in the marketplace, but before I do that we need to understand what a mindset is... A mindset is a frame of mind, a lens through which you look at the world.
Lets get down to business and go over point number 1.
1. Prepare your WHAT and WHY
The WHAT AND WHY Mindset simply means you know what you want to DO and WHY, and it's dramatically motivating!
First thing in thinking about succeeding is pondering WHAT you want to succeed at and WHY?
There are two "What's and Why's." The first is what do you want to contribute to life and WHY?
The second is what do you want in return and WHY?
Everything else will stem from this starting point. The What and Why can be very personal.
KEYPOINT: The What and Why needs to be bigger than you. It must be about you, those who depend on you, those you will serve and your reward.
2. Constant Motivation
To explain the importance of motivation I have to use Zig ZIglar's quote, he says "Motivation is like bathing, it is not needed, but comes highly recommended daily."
Without motivation we won't come far, but I am not speaking about just basic motivation, I am talking about constant and never ending motivation. The kind of motivation you need to keep the fire burning and keep fighting on day in and day out.
Lots of things can happen in a year and it is easy to become distracted and forget your WHAT and WHY, this is why constant motivation will be important. You will need to remind yourself of your WHAT and WHY as time goes on, it would be smart to take 1 day out of the week to spend an hour on motivating yourself and thinking in more detail of your WHAT and WHY.
Doing the above will help you be more focused and it will surely give you the will and power to keep fighting through the bad days and more importantly, to make the most of the good days!
Finally we are here, the last point... the last point is all about commitment and make no mistake, the power of commitment is absolutely critical here. You have to promise yourself now that you will be great and that you will live out your dreams. You probably heard/read about the Harvard study which revealed that the 3% of students who wrote out their life goals down in college out-earned the remaining 97% of all Harvard students.
The power of written goals and signing your name to your promise of your future is absolutely essential in your success plan.
Without commitment you are doomed to a life of failure.
Always know that life will come to test you, it will want to know if you really want to succeed in the markets and in life, without having/using the above 3 mentioned tips it will be hard to go through the challenges life will throw at you, whatever they maybe.
Thats all I have for you today, questions and comments are very welcome!