Good morning Mike,

Happy Fourth of July to you and the team!

Mike, I re-read your first book, One Good Trade and I really tried to focus on your writings and comments about trading psychology, and getting into the mindset of a professional trader. What I would like to know is this: when you get up in the morning on any given trading day, what does it “feel” like to be a professional trader? When you pass people on the street, on the subway, or just walk into the office and you see people working on other jobs that they may or may not like, what do YOU feel like as a trader? Lucky? Empowered? Arrogant? Confident? Humble?

Just curious as to your personal psychology as a trader. Many of us hope to become professionals, but I’m trying to get into the mindset before I become a professional and chase my dream.

Any comments or suggestions would be greatly appreciated.

Best wishes for your continued success in your trading endeavors.

@mikebellafiore

Great question.

In Dr. Steenbarger’s terrific book The Daily Trading Coach I talk about how trying to intake the data from the market while not coloring it. That is my optimal psychological state as a trader and as a person. When I walk around the streets of NYC I want to process the data in front of me and not let personal biases infect the infor-mation. When I’m making a decision I want to gather information and make the best decision without anger, ego, greed, self-interest, fatigue, or personal bias affecting my decision. I am present, processing information, seeking the real truth: the best possible decision.

While trading that means watching the tape, charts, news, and overall strength of the market in a long position and not ignoring the data that indicates weakness in my position because that harms my need to be right with my trade. If I’m long and spot weakness in my trade then I want that clarity of information so I can then sell. I do not want to color the information of only the good for my position as that will lead to me making poor trading decisions.

As a veteran trader I am grateful that I have sustained. Very few have who started with me. I know that one day I can wake up and never be able to make a dime trading again. Trading is a privilege and not a right.

I laugh when you ask whether a pro trader is arrogant. No trader that I know of has sustained a career with arrogance. At best we develop a thesis on a trade, insist on price confirmation for our thesis and then hope for the best. When I’m trading well my win rate is 50 percent on Trades2Hold; when poorly, 37 percent (by the way, this is very good for a trader). What exactly do I have to be arrogant about? In my next book, The PlayBook, I am painfully transparent about how hard it has been to sustain as a trader and kept SMB alive.

Having said that trading has taught me that if I want to become good as something I can. Trading is just about one of the hardest thing you can do and I can. It can be a grind. It takes supreme discipline, hard work, preparation, me being at my best for long periods, concentration, perseverance, and flexibility but I can do it. If I really wanted to become better at golf I could. If I wanted to learn another language I know how. If I want to start a new business that is possible. All of this will take my very best, but I can do it.

I hope that helps.

You can be better tomorrow than you are today!