Only a detached and unemotional state of mind allows us to make our decisions objectively. Many beginning and losing traders believe that good proven system is all that is needed for success. It is not so. The hardest part of trading is the part that YOU must do to win. The link from your mechanical approach to the enhancement of your mental approach will develop your winning and confident attitude each trading day. What is a mental state that will let you trade effectively? When you are happy, rested, alert and ready for any challenges that come your way. You feel in control.

Keeping your emotions in control, you are choosing to change your mental state to optimal for trading and winning. Your heart is not racing, pulse is not pounding, fear is not interfering with your ability to make effective decisions, thinking is clear on any stage of any trade you take. A trader that experiences strong emotions loses the ability to see the reality of the trade. Beginners often feel euphoria when they papertrade with, lets say, 80% accuracy. Unfortunately, when money is on the line, they are under so much pressure, they couldn’t tell the time of day. The money is too important to them. Yes, we live in real World and have to pay bills, but this must be psychologically separated from the trading and actions we take. Trading is far more profitable and fun when you are not focusing on money. And trading is far more than just making money. You define a winning trade and when you see the pattern or setup, you take the trade - easily, without hesitation, feeling good about it. You work the trade right and the money comes as reward for the job well done.

What makes the difference between a winning trader and a losing trader? More knowledge, bigger account, better computer, faster connection? All above are very important but not crucial. The ability to take action is. But here we have another conflict. In daytrading the price patterns form very quickly and require a disciplined, automatic response on trading signals. A disadvantage of a real-time data feed is the compulsion to overtrade. The constant price changes and the dancing indicators strike for action. The flashing neon of Las Vegas exists for a purpose. Quickly responding to signals and a deep need for action when you really should not take a trade must be dealt with by every daytrader. Another problem is not taking action at all , even when valid signals tell you probabilities are on your side. Not taking action simply means you are not in the game. For some reason you believe that not taking a trade will be less painful than taking it. The truth is : if you want to be a trader, you must trade, you must change yourself from fearing to take a trade to cold-blooded readiness to react on valid signal. Working toward your goals and dreams, not sitting and doing nothing.

A trader that cannot execute a trade is not likely to be successful at trading. Whether you can execute is related to the amount of fear your brain generates and amount of confidence you have. Fear is the result of your beliefs about the nature of the market. What you actually fear is not the market, but your inability to act without hesitation when you need to. You have to learn what to fear and realize that you are free to act or not. Is market really threatening you? The market can’t do anything to you that you don't allow. What produces the fear we experience? Biggest fear producer is Loss. You enter a trade, you find yourself to be on the wrong side. Majority of losing traders will wish, hope and pray that the trade will turn around, waiting one more tick, one more second. The loss meanwhile continues to grow. In fact you are doing nothing. Effective way to get rid of fear is to change your perception.

Ability to act is based on your mental state at exact moment you have to take a trade. This state is controlled by your values and beliefs. When you are in power, you easily take action. When you are in a state of powerlessness, you wait, trying to avoid the situation, and avoid the pain you do not want to experience. Part of you wants one thing, but another stronger part wants something entirely different. F.e. You may tell yourself you want to be a trader, but at the same time you unconsciously value your sense of security too much to take any kind of risk with your income. Learn to act fast to get out of a losing position, executing it to the best of your ability. Act immediately, once your criteria for a losing trade has been met. Next trade awaits right around the corner. Each trade is a new trade. Forget about how you did on the previous one, profit or loss. Start clean.

Your success as a trader will be achieved when the probability of successful trades outweighs the probability of losing. This will not work if a trader only executes 1 of 10 trades. You desperately trying to pick the best trade rejecting trades that meet your criteria one by one. When you finally do take one and experience a loss on that cherry picking trade, it becomes more painful, reaching a point where it is impossible to take any trades at all.

Success is unlikely to come without consistency. Believing that you can actually master the Game is crucial. Everyone is capable of being a successful trader. Good attitude, passion and undivided responsibility when mastering the Game of Trading are the must and can make a good trader even from self-doubter.

Traders that manage to Master the game and maintain right state of mind will tell you about interesting thing. One day when some critical mass of experience is reached, amazing transition will happen. Wonderful state comes, which marks the highest possible stage of trader's development:

• Intuitive perception of market actions. When trader acts instantly, flawlessly, with incredible confidence.
• When trading becomes natural part of life, the source of joy.
• Market becomes your friend which you respect and understand but never fear of.