trade to win, not to avoid losing

One rule that nearly every trader breaks who are starting in this business is"scared money never wins," or in other words, amateurs trade underfunded.

What needs to be more understood is that this doesn't only apply to money management and its foundation rule of never to trade risk on a single nonrelated position risk of less than two percent of total investment capital, but the overall mental makeup as a whole.

One way to get closer to a higher likelihood of success is writing yourself a check for the total amount of risk capital, assuming you have twenty losing trades in a row, and accepting that amount lost.

Without a methodology of accepting risk upfront, there is no way over a sample size to not come from the point of scarcity into your trading.

It is a given that a trader makes significant execution errors without preparations like this.

Trading weeds out the weak more than the Olympic event separates winners from losers.

You need to trade to win and not trade to avoid losing.

A scarcity mindset in trading alters your mind to the extent that you within a trade can not perceive the market accurately and affects your execution significantly.

Another way to overcome this significant hurdle is to trade position sizes so small that losses become insignificant.

This approach is not applicable in all markets when the smallest position size exceeds already your comfort level. Crypto trading allows for a good practice where very small units can be traded.

Another way is fake it till you make it. Any forms of how to gain confidence are passable. Stack them like trading edges, and do not trade if it is a day when you do not feel like a superhero.

Slowly working through one sample size after another of paper trading and seeing your stats improve to a solid system with an edge that can handle some human error once you switch to actual execution is undoubtedly one of the best ways to get to the confidence level needed to become a professional trader.