# How to Maintain Positive Psychology while Trading Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-16 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: Discover the Secrets of Positive Trading Mindset Meta Description: Learn from experienced trader Patrick Reid about the importance of a positive mindset in trading. Discover strategies to manage risk & stay focused. URL: https://financedigest.com/how-to-maintain-positive-psychology-while-tradinghtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-back-view-of-stressed-irritated-businessman-sitting-and-working-with-comp-sbi-302894580-1736838166834-compressed.jpg) _By_ **_Patrick Reid_** _, co-founder of the AdamisPrinciple.com_ Trading can be a brutal and unforgiving health hazard. If you search on the internet there are dozens of mind coaches and gurus to get you calm and tranquil before the trading day starts. The only problem is many of them have never traded at all. When you are at the coal face losing your shirt it’s hard not to mock these coaches. The last [thing you need](https://www.financedigest.com/three-things-every-payments-professional-needs-know-psd2.html "Three things every payments professional needs to know about PSD2") is someone going all Zen on you. Being positive has a direct correlation to the amount of risk you take. [Risk controls fear](https://www.financedigest.com/75-per-cent-of-businesses-fear-risk-of-fraud-because-of-weak-accounts-payable-systems.html "75 per cent of businesses fear risk of fraud because of weak accounts payable systems"). If you can define your [risk](https://www.financedigest.com/thomson-reuters-builds-out-its-award-winning-connected-risk-platform-with-risk-management-solution-providing-a-personalized-enterprise-wide-view-of-risk.html) you remove the fear. _That makes you [positive](https://www.financedigest.com/positive-group-sees-huge-increase-in-focus-from-employers-on-staff-psychological-health.html) by default._ At any one point I [know exactly how many trades](https://www.financedigest.com/3-things-you-didnt-know-about-trading.html "3 Things you didn’t know about trading") I’ve got in me before I stop. I [plan for risk events and when there is a liquidity shock I know](https://www.financedigest.com/everything-cfos-need-to-know-about-workforce-planning.html "Everything CFOs need to know about workforce planning") what to do. And I always have a stop in place. Many [retail traders think the big banks](https://www.financedigest.com/rethinking-retail-banking-embracing-a-customer-centricvalue-proposition.html "Rethinking retail banking: Embracing a customer-centricvalue proposition") don’t use stops and they are flat plain wrong. ![Patrick Reid, co-founder, AdamisPrinciple.com](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/patrick-reid-co-founder-of-the-adamisprinciple-1736838166676-compressed.jpg) Patrick Reid, co-founder, AdamisPrinciple.com I’ve read a few books and one that still stands the test of [time](https://www.financedigest.com/best-selling-books-of-all-time.html "Best selling books of all time") is Mark Douglas “Trading in The Zone” It was my first “mind coaching” book which taught me probability but not in the conventional sense. One of the many nuggets I gleaned was realising that if you take a loss it is just 1 in a thousand trades. If that is true then why worry? Also, some of the best traders in the world loose billions. Look at Bill Ackman and how he came back from shorting Herbalife? Now that is a [perfect example of a positive mind set](https://www.financedigest.com/helios-park-the-perfect-setting-for-a-happy-life.html "Helios Park: The perfect setting for a happy life"). Respect. Now he’s [back to making billions with a scorching last year with his hedge fund](https://www.financedigest.com/norway-sovereign-fund-backs-teck-resources-in-battle-with-glencore.html "Norway sovereign fund backs Teck Resources in battle with Glencore") Pershing Square. Some of the [practices I use and teach on my masterclass programme is to understand](https://www.financedigest.com/changing-face-b2b-business-practices-understanding-timeless-behaviour-important-ever.html "The changing face of B2B business practices – why understanding timeless behaviour is more important than ever.") ratios and what they do. Win: loss and risk: Reward are crucial and being mentoring by the best [bank and derivative traders on the planet I quickly realised that one is 50:50 and the other needs](https://www.financedigest.com/what-banks-need-to-prepare-for-eba-pillar3-disclosure-of-esg-risks.html "What Banks Need to Prepare for EBA Pillar3 Disclosure of ESG Risks") to aim for 3:1 Another tip is having a non-trading goal in mind. Buying a house, giving to charity, owning a golf course or even going [back to study are many long term plans](https://www.financedigest.com/back-to-black-germanys-coal-power-plan-hits-hurdles.html "Back to black? Germany’s coal power plan hits hurdles") that can help with being positive – especially if you are having a bad run of form. Remember to stay fit, love your family and eat what you want – within reason. I gave up partying 7 years ago and never looked back. I’m sharper for it. All adding to positive mind set. Research, preparation and practice. Nothing in this world matters more than doing your homework. I look at [markets each day with structure and amazement but once in a while I get caught short in the headlights of crazy moves](https://www.financedigest.com/zeal-to-move-through-settlements-anew-to-drive-the-glyphosate-market.html "Zeal To Move Through Settlements Anew To Drive The Glyphosate Market"). Again I have a [plan and execute it most of the time](https://www.financedigest.com/funeral-plan-investments-four-times-better-value-than-a-cash-isa.html "Funeral plan investments FOUR TIMES better value than a cash ISA"). I am human after all. If you are having stress in your day job we can help you navigate past the pitfalls of fear and anxiety with the [Adamis Principle’s Absolute Masterclass](http://adamisprinciple.com/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---