Traders Mindset and Risk Analysis in the Stock Index Portfolio

Most of the time all you get is the hype. It would seem that pro traders are profitable every day. It is simply not true and we talk today about the hard part of trading and what most pro traders…

Traders Mindset and Risk Analysis in the Stock Index Portfolio

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Most of the time all you get is the hype. It would seem that pro traders are profitable every day. It is simply not true and we talk today about the hard part of trading and what most pro traders go through even if they don’t admit it.

The Stock Index Portfolio is on a winning streak in August but this comprehensive risk analysis of both winning streaks and losing streaks gives a better picture of what the day to day results would look like. This is where most people screw up their trading.

Self sabotage followed by the desire for instant gratification (or visa versa) is a dangerous cycle that I have been through and I see other traders go through. It leads to revenge trading and impulse trading.

How can you stop the cycle?

It’s important to understand the truth and focus on reality versus what you wish were true. You must make sure that you have enough longevity in your capital and trading psychology to make it through the draw downs or you will never succeed as a trader. You can’t expect drawdowns from the past, to not happen again in the future. A one month test approach isn’t reality.

You need three things to trade.
1.) Capital
2.) Strategy
3.) Mindset

I can help you with Strategy and I can help you with Mindset in this video as I give you an insight on how to develop a traders mindset and how to think about the draw downs as well as position sizing based on your resources with respect to the Stock Index Portfolio.

Should you trade the Micros, E-mini’s, or not at all?

This isn’t for everyone!

https://capstonetradingsystems.com/products/stock-index-portfolio-2

There are courses on Trading Psychology but I don’t find them helpful without a relationship to a strategy as it is mostly theory. The best trading psychology and mindset for me always happens when I dive into the numbers and focus on the road map and set expectations accordingly.

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