How professional traders adapted their mindset to win

The psychological factor is the key element in trading. No doubt. The mindset is a big and heavy barrier and even when we try hard to lift it up, it tends to return it to the initial position and not let us follow some simple rules. The emotional baggage that we have been endowed with since we were very young and that helps us in our daily life, can create big issues in trading.

Active vs. Reactive

As young children, we were taught to be proactive and to find new solutions when challenges arise.

In trading, however, we need the opposite of these actions: to be reactive and to (almost) unconditionally follow the rules of trading.

My “right” logic vs. “Irrational” crowd logic

The market is not interested in what we think, what seems logical or what is normal. Prices are set by supply and demand and mass psychology will always win.

This is how it always has been in the past, nothing new. Since ancient times, merchants have traded, buying at one price and selling at a higher price.

Assumption vs. Speculation

To speculate (speculari in Latin) means to observe and act accordingly to the situation. Tom Basso, a famous…