TJ 122: The Importance of Mindset

When learning martial arts, you don't start with training the body. You start with training the mind. A recent student of Tim's shared this insight at one of his classes, and the insight applies just as much to trading as martial arts. You need the right mindset and and attitude or you're setting yourself up for failure. A stereotypical view of the market is that it's a place where you can make money hand over fist with little to no effort. Trading from that mentality is akin to begging industry professionals to take your money, though. Big plays can happen occasionally, but they are far from common, and not actively pursued by veteran traders. Trading is about taking the long view with your account and utilizing those two magical words: compound interest. If, instead of trying to go after one big multithousand dollar payday (which doesn't really exist), you simply trade for a 3% return on your investments, over time you can be making multithousand dollar trades as a matter of course if you reinvest your earnings back into the market every month. We're not talking just a year or two, either; we're talking over a decade or two. It takes hard work, discipline, and patience, but it is absolutely doable.   In this episode, Matt and Tim talk about the importance of mindset when approaching trading.