Mindset is the whole set of knowledge and strategies related to the psychological aspect that lead us to reach the optimal mental attitude to compete on a daily basis in the trading arena and reach our maximum potential as a trader.
We have put it as the third one (after Technical and Risk & MM) as often is done, not because it is last in importance but because it is the last and most difficult hurdle to overcome in order to become a CCP (consistently profitable trader).
On the first approach to trading in fact the first element that fascinates and attracts people is the technique, we look for the optimum system to produce easily and quickly tons of money; you soon discover that it's not that easy and that to extract with a certain consistency money from the market requires a serious commitment, hard work and application; most of the "wanna be traders" ends its experience at this stage as they have already depleted all their financial and psychological capital.
The little group that overcome this first phase, soon realize that any methodology even with a seemingly evident edge does not lead anywhere without a proper risk and money management strategy.
At this point you begin to realize that the trading environment is much more complex than it seemed at the beginning and eventually you begin a search path that will never stop for all your life as a trader.
With a further study of the reality of trading and introducing and religiously respecting a right Risk & Money Management plan, you begin to experience periods of consistency in profits, to occasionally fall back into errors, poor decisions even without apparent reasons and it is at this point that you realize that the mental aspect is crucial.
As in any high level competition in which all competitors have a very high skills level and preparation, the difference is made by the mental attitude and the trading is definitely an environment of this type.
The trading field with its constant uncertainty, unpredictability, influence of countless factors, puts at strain even the strongest individuals, pushing them easily to do the wrong thing at the wrong time, making them to experience feelings of deep sadness, disappointment, anger etc .. that's why this area is for all technically prepared traders a great opportunity for improvement.
In the recent years, on this subject there has been an extensive research and development in the sport field, almost all top athletes have a mental coach and use visualization techniques, mental rehearsal, and various kinds of conditionings to maximize their performance .
Many pro traders clearly say that mindset accounts for 80% of their success; giving percentages is very subjective and does not follow the scientific approach that we favor, but we can definitely affirm that it is very crucial to success in trading so it's a subject to be deepened in full.