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Revealed: The Mental Skills Required to Be a Successful Trader

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successful trader

The world of financial trading, be it investing in cryptocurrencies on the market or trading stocks, can be an unforgiving one. Only the very best are able to rise to the top and turn their trading regimen into a seven-figure income, meaning that total dedication to your craft is a prerequisite. Ask any successful trader, and they’ll tell you that having the right mindset is the key to success.

A clear mind with laser-sharp focus and serious endurance will be able to see the bigger picture, spot the most profitable trades, keep track of the market, reduce risk, and compete with the best of the Wall Street pros. In many ways, successful trading is a lot like being a successful poker player.

You need to be able to play the long game, make the most of your luck, and know exactly when to strike to become a high roller. All of these require a strong arsenal of mental skills. Here are the mental skills you need to build in order to become a successful trader.

Source: Pixabay 

Caption: Successful trading in the financial market requires mental strength, resilience, and endurance. 

1. Mental Toughness & Resilience 

Mental toughness and resilience are absolutely critical. Trading, just like poker, can be a grueling experience that requires stamina in order to get a big pay-off. You’ll need resilience to keep on trucking even when the chips are down and you’ve had an unfavorable trade. You’ll also need to be able to dedicate a lot of time to your craft on a regular basis, as this is the only way you’ll learn how to track the market and execute trades at exactly the right moment. 

There are a few golden rules for developing mental toughness and resilience in the trading industry, many of which have been adopted from the best poker players in the world. The first of these concerns time. According to the poker strategy of players that have won seriously big prizes both online and offline in different variants such as Omaha and Texas holdem, it is essential to commit to spending a certain amount of time each month to playing the game. Their recommendation is to start by committing to an average of 50 hours a month of poker playing to build your knowledge and skillset, before increasing that number every month.

This echoes the strategies of successful traders, who similarly recommend newbies to dedicate a set amount of hours and up that limit every month until you’ve reached the skill level you need to be successful. Make sure to reward yourself for hitting your targets, as positive reinforcement is crucial for building resilience. 

Another strategy used by poker pros and traders alike is to create a journal to log your experience and how much time you’re committing. This is a way to solidify your strategy and learn what is working for you mentally and what isn’t. Make sure to log how long you spend trading, what your successes are, what you could have done better, and how you’re feeling. This way, you’ll be able to consistently build up and improve yourself. 

2. Mindfulness 

Mindfulness is a trait that some of the most successful financial traders in the world swear by. Basically, it’s the process of ensuring total mental calm and clarity. The purpose of this is to avoid making stupid mistakes when trading because you got too emotional, a practice that has derailed the careers of many amateur traders. In addition, the mental clarity that mindfulness can bring about will allow you to see the market more clearly, rather than having your judgment clouded by distractions or preconceived notions.

Mindfulness is easy to attain, as long as you commit and embed it into your trading schedule. Start your day by taking a few minutes to yourself. Perhaps use a guided meditation app such as Headspace to get you in the right frame of mind. Try to empty your mind for just five or ten minutes a day, focusing only on your breathing.

You’ll find that afterward, you will be able to see things more clearly, a vital asset when trading crypto or playing high-stakes poker. You’ll be able to see the market more clearly once you’ve emptied the garbage out of your brain, which will give you a consistent and accurate perspective on the market and reduce the chance of foolish mistakes.

All of the biggest CEOs, from Elon Musk to Bill Gates practice some form of mindfulness on a daily basis. You’d be foolish not to.

Source: Pixabay 

Caption: Mapping out your ambitions and progress will give you perspective and keep your head in the game.

3. Visualization 

Visualization is the mental attribute that will push you towards your goals and teach you to roll with the punches. It’s the process of sketching out exactly what you want to achieve, along with reminders that will allow you to keep a calculated, logical perspective throughout your trading career. There are a lot of different ways that this can be achieved.

The first of these, which is again recommended by top traders and poker stars alike, is to visualize positive imagery at the start of every day. This means thinking about, and ideally making a physical record of the success you want to achieve, and how you imagine you’ll get there. This could include writing down how much money you want to make, or listing other successful traders you want to emulate, or noting what you want to spend your money on.

It’s a two-way process, one that involves cutting out negativity and toxic thoughts just as much as it means focusing on the positive. If you’re stuck in a negative thought cycle or feeling impeded by self-doubt, recognize that and activity fight to push it out. You should also have some kind of mantra that you can repeat to yourself when you know you need to keep going.

This could be something along the lines of “success doesn’t come easy” or “quitting gets you nowhere”. The key is to find a mantra that speaks to you and will be guaranteed to pump you up. Positive visualization will attract positive outcomes, on the trading floor and beyond. 

As these real-world examples show, success is a mindset. It may not come naturally to you, but you have the resources to start building that mindset today, so don’t waste any more time.

Crypto

BNB Price Surges Past $300, Faces Crucial $339 Hurdle: What’s Next?

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BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.

Binance Coin Outlook

BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.

Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD)  on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.

The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…

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Altcoins

Solana Price Surges Beyond $100, Dethroning Ripple and BNB To Secure Fourth Place

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Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.

SOL Outlook

Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.

The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.

This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…

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Altcoins

Solana Price Skyrockets to 20-Month Peak Amidst Memecoin Frenzy

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Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.

Catalysts Behind SOL’s Rally

Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.

The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.

Cited figures provided by DeFi aggregator DeFiLlama

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