Over the years, I have heard hundreds of traders swear at the market.

I have heard dozens of traders pound on the desk in frustration at the market and, on two occasions, I have seen traders hit their computer monitors so hard that it broke the screen.

The interesting thing about this last outburst of emotion was that because the screen was broken, the trader was unable to exit the trade that caused the frustration.

As you can imagine, this only heightened the emotion.

Why all of this negative energy?

There is nothing good that can come from swearing at the market, pounding the desk, or breaking equipment. Yet, so many traders get mad at the market as if the market conspires to hurt them.

I believe, the reality is far different.

It is my belief that the market is meant to pay money to the few who understand it.

So, what is the mindset of a winning trader?

To me, the mindset of a successful trader has three progressive parts, as follows:

1. The market is designed to pay you money;
2. A good trade works immediately; and
3. Lastly, any trade that does not work immediately is suspect

First, in my theory of the successful trading mindset, the market is designed to pay you.

The market is not some horrible game fixed to make you lose. It is designed to give you money, as long as you understand it and have the discipline to live by the trading and risk rules that you make for yourself.

Unbelievably, most people fail because they do not have the discipline to even follow the most basic rules.

Next, a good trade should be easy to spot.

Once you put on a good trade, it should work, immediately and decisively.

Third, if a trade does not immediately work, you need to be suspicious of it.

Be slow to get into trades, but quick to get out of trades that do not immediately work.

I tell traders to expect every trade to explode in their favor the moment they put on the trade.

If a trade does not instantly take off in their direction, they need to become suspicious. In practice, failing traders who are in a trade that does not immediately work, change their mindset to one of justifying staying with the trade to “give it more time”.

The market occasionally rewards holding a trade that did not work immediately. However, the odds favor getting out of trades and, if you still like the trade after exiting it, you can do it again.

In summary, my view is that swearing at the market is not helpful.

The electronic futures markets that we trade are filled with opportunity. These exciting markets will even pay you money for your disciplined efforts, if you just understand them and have the mindset to take advantage of what they have to offer.

Wishing you success in your trading,
Jeff

For more of Jeff’s articles on trading, go to www.JeffQuinto.com or check out his website for serious traders at www.TransformativeTrading.com.