Trader Mindset

This page is a work in progress to help with trader mindset (particularly worth reviewing when I have a bad day).

Fundamentals of a Trader Mindset

The 4 Ms of Trading

The four Ms are:

  • Markets
  • Method
  • Money Management
  • Myself


  • Do the market hours fit with my day
  • Is the volatility ok for me (will the moves stress me out)
  • Does my method suit the market I want to trade
  • Are you clear what the market is doing?

Method (least important)

  • Does the method suit me and my circumstances
  • Is it clearly defined? No grey areas/no conflict
  • Am I trading the correct method for the market environment

Money Management (most important)

This really means risk management.

  • Are you capitalised enough for your market
  • How much risk am I prepared to trade
  • Never trading without a stop loss, never risk too much so you can come back another day


  • Do you have the support structure around you to trade (family, mentors, etc)
  • Are you well rested and healthy. You need to be to handle stress.
  • Are you financially comfortable. If you need money don’t trade.

Working from a foundation

This is probably one of the most important things I’ve learnt since I started. If you don’t have an approach to your trading that you can measure and compare yourself against you have no real idea if you are improving or just lucky.

Risk Management


Dealing with stress and trade anxiety

The power of taking time out / away from trading to refocus

The power of taking time out / away from trading to refocus

You learn a lot when you’re going through a drawdown period [where to make tweaks/improvements]

Dealing with losers and poor performance

Putting losing trades in to context

It’s just one of hundreds of trades that you’ll make.

You never stop learning

Not a fan of this guy but he makes some good points. Interesting that he said it took him 2 years to get consistent trading.

Keeping up moral when things seem to be going sideways

2nd half of the video.

If you’re account is going sideways – you’ve built up experience without losing money!