Mindset

mikeriley

mikeriley

Psychologist Carol Tweck's book called "Mindset" was an interesting read.

Her theory deals with the symptoms, advantages and disadvantages of a Growth Mindset vs Fixed Mindset. How preconditioning through parenting, peers, education, media and environment will shape our personality, attitude and beliefs.

Summary:

Fixed Mindset: Tend to depend on natural abilities, talent and intelligence. Focused on proving to themself and others that they're smart and talented. Failure and setbacks mean they're not smart or talented enough; therefore, intolerable and they're likely to quit. May reach a level, get stuck and quit, unless they learn how to change.

Growth Mindset: Tend to depend on trial and error method, handwork and persistence. Pushing themself, learning, and improving. Focused on reaching the next milestone or goal. Failure and setbacks means not seizing an opportunity to learn, not striving for what’s important or not reaching for their potential.

Conclusion: It may be beneficial finding methods to identify if one has a Fixed or Growth mindset, or a combination of the two. To make adjustments in attitude to reach aspirations or the next level.

https://u1lib.org/book/3707522/425a92

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mikeriley said:
Psychologist Carol Tweck's book called "Mindset" was an interesting read.

Her theory deals with the symptoms, advantages and disadvantages of a Growth Mindset vs Fixed Mindset. How preconditioning through parenting, peers, education, media and environment will shape our personality, attitude and beliefs.

Summary:

Fixed Mindset: Tend to depend on natural abilities, talent and intelligence. Focused on proving to themself and others that they're smart and talented. Failure and setbacks mean they're not smart or talented enough; therefore, intolerable and they're likely to quit. May reach a level, get stuck and quit, unless they learn how to change.

Growth Mindset: Tend to depend on trial and error method, handwork and persistence. Pushing themself, learning, and improving. Focused on reaching the next milestone or goal. Failure and setbacks means not seizing an opportunity to learn, not striving for what’s important or not reaching for their potential.

Conclusion: It may be beneficial finding methods to identify if one has a Fixed or Growth mindset, or a combination of the two. To make adjustments in attitude to reach aspirations or the next level.

https://u1lib.org/book/3707522/425a92

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Interesting, curious if standard tests give insight to this distinction. Given current events, there's support for a third distinction; the "Regressive Mindset."

A mind not able to process opinion from fact in the information age.
 
I think a fixed mindset is unhelpful when it comes to trading as it is based on notions of believing you are important and talented and this lack of humility will likely get you burnt in most markets you attempt to trade in. Being humble and accepting the need to learn and study is vital to success in trading. The most important thing to know is that you know nothing.
 
When it comes to trading, mindset is everything. You will be able to successfully complete your trading journey if you have a strong and sound mind.
 
It is important to have the right mindset in order to develop the right trading psychology. It also helps in maintaining a positive attitude and remaining motivated even while facing losses.
 
Recognising the importance of emotion and psychology and actively taking efforts to counteract their effects are necessary for developing the proper mindset to be successful.
 
I haven't read this book. Sounds interesting.

I agree that mindset is so key to trading well and being able to follow your plan and trust yourself. I help traders do that as a coach, and I have learned how to do it for myself over the years.

I think it boils down to being able to be with yourself and tolerate feelings that come up. And, not have them overtake you. The problems we have trading are often based on feelings (such as fear of missing out, or anger at a loss . . . that turns to revenge trading).

If the trader can feel the fear or anger and let it pass through without acting on it, that is much of the battle.

How do you do this? Practice "being with" feelings and letting yourself feel them without acting on them. Best to practice away from the market. By the way, this is an important tool for just dealing with life, especially these days.
 
Not only in forex but in general too, mindset plays a very important role. It is your mindset which makes or break you. So be optimistic and positive always.
 
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