Profitable trading is primarily a function of our emotions and feelings. If we have the wrong mindset we will not make money.
If you want to be a better trader in 2020 then you should resolve to think positive and banish pessimism and negativity.
That may sound trite and simplistic but if you are not optimistic about your ability to make money in the market then there is a good likelihood that you are right.
"The Power of Positive Thinking" was a best-selling self-help book by Norman Vincent Peale, however, most traders I encounter fail to recognize how this concept can help them in their endeavors.
Being optimistic and positive doesn't mean that you expect the market to go higher every day. It also doesn't mean that there won't be negative news and losses. What it means is that you always believe that there will be another opportunity around the corner. It means that you are confident that if you keep pushing that you will find ways to make money.
A market downtrend isn't a negative if you think positive. It is just the process of creating more opportunities to eventually make money. It may even be a great time to short and make money in that manner.
Looking back at the action in 2019 what cost market participants more than anything was the inability to embrace the positive action. Many folks spent months anticipating disaster that never occurred. That lack of optimism may have seemed prudent and realistic, but it prevented the mindset that produced profits.
What I love about the market is that no matter what happens, I know -- without a doubt -- that there will always be another trade, another good chart, another way to make money. It doesn't matter what the news might be or if there are computer programs jerking the indices around. The confidence that there will always be ways to make money is what helps me be successful as a trader.
No one knows what the market will do in the year ahead but if you think positive, stay optimistic and keep looking for the next opportunity I'm quite sure that you will do well.