The financial markets are a battlefield. It is where fortunes are made and lost, often in the blink of an eye. For over a decade, I have been immersed in this world, navigating its treacherous waters, and I want to share the insights that have changed my approach to surviving and making money in this high-risk arena.

Understanding the nature of the market

Essentially, the market is a game of opposites. For every buyer, there must be a seller; for every winner, there must be a loser. This dynamic ensures that the majority—over 90% of participants—will lose. It seems almost predetermined, as if the structure of the market reflects the natural order of society: a small elite group succeeds while the masses struggle. This realization can be disheartening, but understanding this truth is the first step to changing your approach.

As a new trader, I believed that the market was manipulated, controlled by powerful entities like banks, whales, and other organizations. But experience taught me the opposite. While these big players have significant influence, they are not invulnerable. They are also speculators navigating uncertainty. The key difference lies in their mindset, strategies, and discipline—qualities that set them apart from the average trader.

Shift focus: From technique to psychology

Initially, I immersed myself in technical and fundamental analysis, studying charts, indicators, and market trends. However, despite mastering these tools, I still struggled to achieve consistent success. This made me realize an important fact: just understanding the mechanics of trading is not enough. To truly excel, I needed to understand the psychology of winners.

I happened to read Maxwell Maltz's book Psycho-Cybernetics, which became a turning point in my journey. The book emphasizes the power of self-image and mental conditioning in achieving success. By applying the principles from the book, I began to align my mindset with that of successful traders. Here’s what I learned:

Think differently: Most people tend to act emotionally, driven by fear and greed. However, winners approach the market with logic and detachment. They do not chase trends or panic during downturns; instead, they adhere to their strategies and trust their process.

Cultivate discipline: Successful trading is not about executing the right trades but managing risk. Winning traders meticulously plan their trades, set clear stop-loss levels, and never let emotions dictate their actions. They understand that losses are part of the game and focus on minimizing them.

Adopt a long-term perspective: Most traders are obsessed with short-term profits, which often leads to impulsive decisions. Winners think in terms of probabilities and long-term outcomes, knowing that small, consistent gains can accumulate into a significant fortune over time.

Build a solid foundation

With a psychological shift, I reconsidered my trading approach and integrated the following principles:

Risk management: Never risk more than you can afford to lose. I follow the 1% rule, whereby no single trade risks more than 1% of my total capital.

Continuous learning: The market is always changing. Staying informed and adaptable is crucial. I spend time studying market behavior, refining my strategies, and learning from both successes and failures.

Patience and consistency: Winning in the market is not about frequent trading but about trading correctly. Patience allows you to wait for high-probability setups, and consistency ensures you stick to your plan without deviation.

Master emotions: The fear of loss and the greed for quick profits are the biggest traps. Developing emotional resilience helps you stay calm and make rational decisions even under pressure.

The difference between winners and losers

Ultimately, the difference between winners and losers in the market hinges on mindset and behavior. While most people react, winners take initiative. They are not swayed by market noise or the opinions of others. Instead, they rely on their analytical skills and intuition, honed through experience and self-discipline.

The market is neither an enemy nor a manipulative force; it is a reflection of collective human behavior. By understanding this, you can position yourself on the winning side. Success is not guaranteed, but with the right mindset and approach, it becomes possible.

Final thoughts

Surviving and making money in the financial markets is a journey of self-discovery as well as trading. It requires you to think differently, embrace uncertainty, and continuously strive for improvement. Big players are not invincible; they simply operate with a level of discipline and perspective that most people lack. By adopting their mindset and refining your approach, you too can tilt the odds in your favor. Remember, the market rewards those who are prepared and disciplined.