Emotional trading: Harnessing the mental components of successful traders

In the recent NinjaTrader Ecosystem webinar, “Making the Market’s Hidden Structure Visible,” Drummond Geometry’s Scott Mangis dove into the energy of the markets—and we don’t mean energy contracts like crude oil. Mangis emphasized Drummond Geometry’s four components of successful trading:

• Physical
• Emotional
• Mental
• Spiritual

Mangis displayed these components in a Venn diagram, noting that there is a dance between all these elements that helps generate day trading success.

An eye-opening statistic that Mangis shared is that only about 5% of all traders are successful. He said that while intellectual knowledge in trading is important, just “being smart” is not enough.

Mangis said that humility is one underrated trait of successful traders. He said that discipline is also critical, but you must also show self-compassion, because trading will help you learn a lot about yourself.

Shining a light on the market’s hidden structure

Mangis also demonstrated how traders can calculate support and resistance levels for bars not yet formed. He posed several important questions in making the market’s hidden structure visible:

• What if you could see the market’s direction before it opens?
• What if you could see support or resistance on the bar that has not yet formed?
• What if you could gauge the flow of the market in real time to determine if support or resistance is weak or strong?

Mangis goes in depth on emotional trading and options in the full presentation. Watch here:

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