What is the Mindset of a Trader?
Being a trader is not just about formulating better strategies and performing more extensive analysis, but is also about developing a winning mindset. According to many studies of traders, what separates a winning trader from a losing one:
It’s NOT that winning traders formulate better trading strategies
It’s NOT that winning traders are smarter
It’s NOT that winning traders do better market analysis
What separates a winning trader from a losing trader is their psychological mindset.
Most traders when they first begin trading mistakenly believe that all they need to do is find a great trading strategy. After that, all they’ll need to do is come to the trading market each day, plug in their great trading strategy, and the market will just immediately start pumping money into their account.
Unfortunately, as any of us who have ever traded have learned, it’s not that easy. There are plenty of traders who use intelligent, well-designed trading strategies and systems who still regularly lose money rather than make money.
The few traders who do consistently win the game of trading are those who have developed the appropriate psychological mindset that enables them to be consistent winners. There are certain beliefs, attitudes, and psychological characteristics that are essential to conquering the world of trading.
Being a trader is not just about formulating better strategies and performing more extensive analysis, but is also about developing a winning mindset. According to many studies of traders, what separates a winning trader from a losing one:
It’s NOT that winning traders formulate better trading strategies
It’s NOT that winning traders are smarter
It’s NOT that winning traders do better market analysis
What separates a winning trader from a losing trader is their psychological mindset.
Most traders when they first begin trading mistakenly believe that all they need to do is find a great trading strategy. After that, all they’ll need to do is come to the trading market each day, plug in their great trading strategy, and the market will just immediately start pumping money into their account.
Unfortunately, as any of us who have ever traded have learned, it’s not that easy. There are plenty of traders who use intelligent, well-designed trading strategies and systems who still regularly lose money rather than make money.
The few traders who do consistently win the game of trading are those who have developed the appropriate psychological mindset that enables them to be consistent winners. There are certain beliefs, attitudes, and psychological characteristics that are essential to conquering the world of trading.
8 investing lessons Everstone’s Prashant Desai picked while working with Rakesh Jhunjhunwala
"'Bhav bhagwan hai' (price is God)." That's the first and foremost in a series of lessons from none other than ace investor Rakesh Jhunjhunwala that a former colleague of his has picked and put together on social media.
Prashant Desai, Senior Director at PE and realty investment firm Everstone Capital, has handpicked and compiled eight lessons on investing from the Big Bull, according to a chain of Tweets by Ravi Dharamshi, founder and MD, ValueQuest Investment Advisors.
Both Desai and Dharamshi have earlier worked in RARE Enterprises, an asset management firm owned by Jhunjhunwala, whose plan to foray into aviation took Twitter by storm recently.
"I worked with Rakesh Jhunjhunwala as his Head of Research and what an amazing learning experience it was. Working closely with him led to several investing lessons, which I still keep going back to,"
Here are those eight lessons:
1. 'Bhav bhagwan hai'
2. Right or wrong doesn't matter
What matters is how much money you made when you were right and how much you lost when you were wrong.
3. Don't borrow to invest
Markets may remain irrational more than the rational being can remain solvent.
4. Risk
Beware of this four-letter word. Only invest what you can afford to lose in the short term.
5. Investing cannot be taught
Make mistakes. Make a mistake that you can afford so that you can live to make another one. But never repeat the same mistake.
6. Be an optimist
That's the first quality necessary to succeed as an investor.
7. Conviction and patience
In stock markets, your patience is tested, and conviction is rewarded.
8. Wisdom and wealth are not related
"'Bhav bhagwan hai' (price is God)." That's the first and foremost in a series of lessons from none other than ace investor Rakesh Jhunjhunwala that a former colleague of his has picked and put together on social media.
Prashant Desai, Senior Director at PE and realty investment firm Everstone Capital, has handpicked and compiled eight lessons on investing from the Big Bull, according to a chain of Tweets by Ravi Dharamshi, founder and MD, ValueQuest Investment Advisors.
Both Desai and Dharamshi have earlier worked in RARE Enterprises, an asset management firm owned by Jhunjhunwala, whose plan to foray into aviation took Twitter by storm recently.
"I worked with Rakesh Jhunjhunwala as his Head of Research and what an amazing learning experience it was. Working closely with him led to several investing lessons, which I still keep going back to,"
Here are those eight lessons:
1. 'Bhav bhagwan hai'
2. Right or wrong doesn't matter
What matters is how much money you made when you were right and how much you lost when you were wrong.
3. Don't borrow to invest
Markets may remain irrational more than the rational being can remain solvent.
4. Risk
Beware of this four-letter word. Only invest what you can afford to lose in the short term.
5. Investing cannot be taught
Make mistakes. Make a mistake that you can afford so that you can live to make another one. But never repeat the same mistake.
6. Be an optimist
That's the first quality necessary to succeed as an investor.
7. Conviction and patience
In stock markets, your patience is tested, and conviction is rewarded.
8. Wisdom and wealth are not related