There are many trading guides available online, some paid and some for free. They will offer plenty of detail on strategies for making winning trades at betting exchanges such as Betfair. However, simply following a list of instructions is not going to get you very far in the long term.
The one key aspect every successful online trader has is a good mindset. Developing a trading mindset will go a long way to seeing positive results over a long period of time but what is a trading mindset? And perhaps more importantly, how can you develop a trading mindset?
What is a Trading Mindset?
A mindset can be defined as ‘the established set of attitudes held by someone’. From this we can deduce that a trading mindset is an established set of attitudes held by people who trade successfully.
This means successful traders have a common set of attitudes which they employ every time they make a trade. Through learning and hard work, they know this set of attitudes works very well for trading and without them, making winning trades would be tough.
So, what are these attitudes and how can you develop them into your trading?
The big step to developing a trading mindset is to identify the attitudes and traits required to become a top trader.
Setting Realistic Goals
When you begin trading you must set yourself some goals and ensure they are achievable. If you look at the top online Betfair traders and think you are going to emulate them in a matter of weeks, you are setting yourself up for failure.
This is not the mindset required for trading. You need to look at your own strengths and weaknesses and formulate some small goals to begin your journey. As you hit those goals, however insignificant they may be, you have made a step in the right direction.
Setting realistic goals is all part of developing a sound trading mindset.
If you are not comfortable taking risks, you will find it very difficult to become a successful trader. As highlighted above, you can follow sound strategies but when it comes down to it, you are still placing a bet and there is a chance something can go wrong.
If you are unable to accept the fact that every time you make a trader on Betfair or any other betting exchange, you are taking a risk, it will be very tough to move forward and develop the right mindset for trading.
You need to accept that you will make some losses. It is key to developing a trading mindset.
If you want a good chance of making successful trades, you must be emotionally disciplined. This can be linked to the point above about taking risks. You know every trade you make is not going to win, that’s a fact. However, it is how you react to the losses which will have the biggest impact on your trading.
You cannot go chasing after the next trade because you had a setback. If you go chasing your losses, you may as well stop trading right now. That may sound harsh but you will be doing yourself a favour.
When a trade does not go as you intended, you need to make a note of it on your records, learn from it and move on. You must remain calm and keep your discipline. This is key to developing a trading mindset.
The same applies when making trades. Do not go after every potentially winning trade you see. Choose the one you believe is right and stick to it. Chopping and changing between different trades or making ten different trades in the hope one will pay off will not work. Stick to your guns and trust in your own ability.
Patience and Persistent
Becoming a good trader is not easy, if it was, everyone would be doing it. It takes patience and persistence. There are going to be ups and downs but you must be prepared to learn, especially from mistakes and not give up when you are moving in the right direction.
Progress can seem slow at times and that is when you need to stick in there and believe you will become successful. Determination is a major part of a trading mindset.
One of the major aspects of developing a trading mindset is to keep a positive attitude. That doesn’t mean sweeping losses under the carpet or getting carried away with a big win. It means allowing yourself some satisfaction when your hard work pays off with a successful trade but not being negative and blaming outside factors when something doesn’t go quite right.
If something went wrong, take the necessary steps to fix it and see it as personal growth. Do not get gloomy about it and try and pass the blame off on someone or something else. Remain positive about what you are trying to achieve.
Finally, you want to develop a routine to your trading and this will help you focus. Forming good habits will help you and the more organised and focused you are, the better chance you have of being successful. This is a fact you can relate to almost anything in life and the same applies to trading.
Knowing what you are going to do and having a pattern in place is vital when developing a trading mindset. Having long term and short term goals written down will help with creating a routine and help to keep you motivated.
Keep a journal and use it as a record of not only the outcome of your trades but also your feelings and emotions. You may be able to link how you were feeling and what you did in the lead up to a trade to the result of the trade.
Spotting trends like this helps in developing a trading mindset.