To be successful in trading, traders can take many steps, starting from creating a reliable trading strategy, reading candlestick patterns, understanding the market's key and influence, and others. However, some marketers tend to overlook one less important factor, which is the marketing mindset. This factor greatly affects the success of the client.
In the event of a loss, many novice traders will blame the trading strategy used. Although this is not entirely bad, many professional traders believe that the cause of the loss is psychological.
Traders with bad trading ideas will make bad trading decisions so the result is predictable: the trader loses. The good news is that fixing a bad business idea is completely possible. One of the marketers involved in developing the mind and developing marketing ideas is Rande Howell. In creating a podcast on the Better system trader website, Rande Howell revealed all his secrets to building the right trading philosophy. Anything?
Rande Howell in brief.
Rande Howell is a marketer with a special background in mental health counselling. He is a US citizen and a former hedge fund manager. Now, he has been a regular customer for over fifteen years.
Howell often organizes training or motivation to help clients develop a positive mindset or state of mind. He is also a writer for various media. One of his best works is the book «Mindful Trading: Mastering Your Emotions and The Inner Game of Trading». Apart from that, he also has a personal website called mytradersstateofmind.com and a YouTube channel called Rande Howell.
Rande Howell talks about building a business idea. In his interview, Howell explained how important it is to develop the psychology of entrepreneurship. A marketing strategy or analysis is the only tool to achieve success in marketing because what determines success in marketing is the mindset and core of each customer. Here are important tips that Rande Howell can apply especially for beginners:
- Focus on the process, not the results «Can't control the outcome, focus on the process»
In this context, Rande Howell teaches that marketing is an ongoing and uncertain activity. Sometimes customers can get big profits, but on the other hand, losses can happen at any time if customers are not careful. In business, no one can guarantee that customers will continue to make a profit. The mindset of a good trader is to focus on learning and maintaining consistency in trading behaviour. By staying consistent in practice, consumers will feel more prepared and more experienced.
- Be friendly with the market and don't fight «Wait for the market to show you what it is willing to give you, don't force it»
In the podcast, Rande Howell emphasizes that it is very important for beginners to always understand the market before jumping into opening positions. There is a saying «don't know then don't want». Beginners who experience business failure often start with the attitude of underestimating the market and jumping right in without first admitting it. The misunderstanding of the market will cause the customers to think wrongly, not be prepared for situations that are not the plan, and not be able to assess the risk properly. Then, the other mistake beginners often make is trying to differentiate themselves by trading against the market. In business, there are preventive measures or prevention strategies. However, this strategy is only done by experienced traders who have mastered price volatility.
- The Holy Grail does not exist «There is no holy grail out there...you are the problem and the solution. »
Many experts deny the existence of the holy grail in business, including Rande Howell. For him, any good strategy cannot ensure 100% profit due to unpredictable market movements. The holy grail in the world of marketing is a mystery. Still, Howell believes the real holy grail lies in how customers learn and apply one aspect of marketing. Therefore, the Holy Grail is not in the strategy used, but in how the strategy is used. And according to experts, the focus of this strategy should not be on strategy, but on other aspects that are often neglected by novice traders. Examples are trading psychology and risk management.
Many traders can still get consistent profits even if they rely on simple analysis, for example, such as buy and support, sell and resistance, or rely on passing MA. As long as risk management and discipline are applied and customers can maintain the scientific knowledge of trading, any plan can create the expected profit.
- There is not enough truth in marketing «You can do everything right and still be wrong, it's a matter of probability»
According to Howell, a marketing plan is simply a formula based on calculations that are not realistic. So, it is likely that customers will encounter errors from time to time. In the end, everything is just a possibility that cannot be accurately predicted. So, for new customers, don't add 100% of all business leads to different sources like books, the internet, or even YouTube videos.
As mentioned above, marketing is a profession that comes with uncertainty. Believing too much in a theory or plan will keep the client from growing. The best step is to continue to evaluate the business to reduce mistakes from previous experiences.
- Patience is the key «The patient seller is the one who wins in the end. »
Rande Howell explains that one of the keys to her success is being patient and being able to control her emotions. According to him, impatience arises when customers are faced with different or marginal sales. Many new customers will find this situation very annoying. Therefore, they cannot wait to close the position as the price movement is usually slow. Psychologically, impatience arises because they want to quickly gain a profit or realize a loss so that they can re-enter. The best way to practice patience in trading is to reduce position size or reduce leverage.
The reason for this is that it can reduce the pressure when the buyers get a lot of money, which will help the buyers to be more patient in holding positions when the market is sideways. The next step is to try to see what happens in the long run. Usually, the short-term price seems volatile, prompting customers to quickly open and close positions. Now, by looking at the long term, customers will be more patient with themselves and be able to make better decisions, as price movements in the long term tend to be easier, less easy, and easier research.