The defining characteristics that separates successful traders from everyone else is this: the winners have attained a mindset, a unique set of attitudes that allows them to remain disciplined, focused and, above all, confident - in spite of the adverse market conditions.

As a result, best traders are no longer susceptible to the common fears and trading errors that plague everyone else.

Trading is inherently risky. No trade has a guaranteed outcome. Therefore, a possibility of being wrong and losing money is always present.

So when you put on a trade, can you consider yourself a risk-taker? Of course, any trader is taking a risk when you put on a trade, but that doesn't mean that you are correspondingly accepting that risk. In other words, all trades are risky, because the outcomes are probable - not guaranteed.

BUT

Do most traders really believe that they are taking a risk when they put on a trade? Have they really accepted that the trade has a non-guaranteed, probable outcome? Furthermore, have they fully accepted the possible consequences?

 

The answer is - NO.

 

The best traders not only take the risk, they have also learned to accept and embrace that risk. There is a huge psychological gap between assuming you are a risk-taker because you put on trades and fully accepting the risk inherent in each trade. When you fully accept the risk, it will have profound implications on your bottom-line performance.

 

The best traders can put on a trade without a slightest bit of hesitation and conflict - and just as freely and without hesitation or conflict admit it is not working. They can get out of a trade - even with a loss - and doing so doesn't resonate the slightest bit of emotional discomfort.

 

In other words, the risk inherent in trading do no cause the best traders to lose their discipline, focus, or sense of confidence. If you are unable to trade without the slightest bit of emotional discomfort (specifically, fear), then you have not learned how to accept the risks inherent in trading.  This is a big problem, because:

 

to whatever degree you haven't ACCEPTED the risk is the same degree to which you will AVOID the risk.

 

Trying to avoid something unavoidable will have disastrous effects on your ability to trade successfully.

 

What are we generally most afraid of (besides dying or public speaking)? Certainly, losing money and being wrong - both rank close to the top of the list. Admitting we are wrong and losing money to boot can be extremely painful and certainly something to avoid. Yet, as traders we are confronted with these two possibilities virtually every moment we are in a trade.

 

Trading presents us with a fundamental paradox: how do we remain disciplined, focused and confident in the face of constant uncertainty? Learning how to redefine your trading activities in a way the allows you to COMPLETELY ACCEPT THE RISK is the key to thinking like a successful trader.

 

What are you willing to give first (i.e. fully accept the risk), to be able to receive after?

 

Learning to accept the risk is a trading skill. The most important skill you can learn.

 

When you learn the trading skill of ACCEPTANCE, the market will no longer be able to generate information that you define or interpret as painful. If the information the market generates doesn't have the potential to cause you emotional pain, there's nothing to avoid. It is just information, telling you what the possibilities are.

 

So are you willing to truly give first by fully accepting the risk, to be able to receive after?

 

 

 

excerpt from a book: Mark Douglas - Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude