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20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

DISCLAIMER
The information contained in this guide is for informational purposes only.

I am not a financial advisor. Any legal or financial advice that I give is my

opinion based on my own experience. You should always seek the advice
of a professional before acting on something that I have published or
recommended.

No part of this publication shall be reproduced, transmitted or sold in

whole or in part any form, without the prior written consent of the author.

Users of this course are advised to do their own due diligence when it
comes to making business decisions and all information, products,
services that have been provided should be independently verified by your
own qualified professionals.

By reading this guide, you agree that myself and my company is not
responsible for the success or failure of your business decisions relating
to any information presented in this guide.

© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

WHAT DO WORLD-CLASS
TRADERS HAVE IN COMMON?
If you, just like me, have spent all the time to interview and read the books
and watch the videos of some of the top traders in the world, you would
have realized that all of them are using different systems, timeframes and
indicators.

However, all of them do have the some habits and traits in common, which
I’m about to share with you later in this report. And you will see this being
repeated over and over again.

These top traders will attribute the main reason for their trading success to
a mind-set or action that they take or do not take on a daily basis.

If a trader ever tells you that their system is the Holy Grail or that it can
generate you millions overnight without you putting in much effort, my
suggestion to you is to run away from that person.

Being a trader myself, it took me a lot of blood, sweat and tears to realize
this.

Just like any other beginner traders, I once thought that the system is the
Holy Grail in trading and that our mind-set won’t contribute much to our
profitability.

It cost me tons of money to only start to realize that I was wrong about
that.

Here is the good news, you do not have to go through that

because I have done all the work for you. Here are the 20
secret psychology of world-class traders:
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 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #1:
BE PATIENT AND KNOW WHEN TO STAY OUT OF THE MARKETS

Understand that sometimes the best trades are the ones that you did not
make.

Instead of focusing on obtaining 5 mediocre trades (e.g. 50 pips each), put

your entire focus on catching that 1 excellent trade (e.g. 500 pips).

I always tell my mentees that catching quality trades are more important
than catching large amount of trades with small profits.

This will not only save you time but also keeps your emotion in stable.
In order to do that, you’ll need patience.

Most traders just couldn’t take the pain of waiting. I’m sure that this is not
you, especially if you are reading this.

© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #2:
KEEP LEARNING AND STUDYING

The best traders in the world constantly learn about the markets that they
are trading in, whether it is from books or talking to traders who are more
successful than them.

If your dream is to be at the top 10% of the traders who are consistently
profitable, you’ll have to be willing to do what the 90% of the traders are
not willing to do.

This include studying, constantly back testing, keeping a trading journal

and learning everything that you can about the markets and your system.

SECRET #3:
BE RIDICULOUSLY DISCIPLINED

This is often the area where most traders struggle to deal with.

Lack of discipline can lead to you getting into trades that you shouldn’t be
going into. You’ll need the discipline to not only cut your losses when you
are in a bad trade, you’ll need it as well to stick to your plan.

© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #4:
DO NOT HOPE FOR A REVERSAL

If you are hoping or praying for a reversal to happen, you might as well be
gambling rather than trading the markets.

Some traders use this opportunity to hedge their trades, which in my

opinion is a bad move. It is better to stay in a quality trade than fix a bad
trade.

If you are in a position where you feel that you have entered a bad trade,
get out from it as quickly as possible. Use that capital to catch a better
trade.

SECRET #5:
DON’T LOOK FOR SHORTCUTS

Most traders tend to rush into funding their accounts and finding mentors
that can provide them with an overnight millionaire system.

This is because not a lot of traders know that trading is an education. Most
people treat it as a get-rich-quick tool as they were told by the
advertisements out there that they can make profits tomorrow morning as
a beginner! If trading is so easy, wouldn’t everybody become a millionaire?

If trading is so easy, there wouldn’t be a failure rate of 90% within the

industry.

All good things in life comes with putting in the blood, sweat
and tears. So are the fruits that comes from trading.

© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

There are some nights where I’ve

studied my charts until 5 a.m. in the
morning (although I don’t recommend
you doing that). A lot of people don’t
see the hard work that I’ve put in. They
only see the results.

If you want it bad enough, you have got

to work for it. I did so and so can you.

SECRET #6:
ADMIT MISTAKES AND LEARN FROM THEM (BE HUMBLE)

By now, you would have known that 90% of the traders lose money. Did
you know that even the best traders in the world lose money?

What makes difference between the best of the best and the other losing
traders then?

While the rest of the traders are complaining about their losses and
blaming external circumstances for it, the successful traders learn from
their mistakes, record them down onto their journal and move on.

The best traders in the world become better with each mistake they make.
The losing traders become more miserable with each mistake they make.

© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #7:
KEEP A DIARY SO THAT THE IDEAS CAN BE BACK TESTED

For every trade that you make (losing or winning), record it down onto a
Word document or Excel sheet. In that way, you can always go back and
review it. You can also pass it down to your mentees.

Having a trading journal is like having your very own textbook that you can
constantly go back and review. Trust me, you will need it.

SECRET #8:
HAVE THE CONFIDENCE TO TAKE RISKS

A lot of times, becoming a perfectionist trader may just go against you

because you won’t pull the trigger even when all the stars (in this case,
indicators) are aligned.

As long as you have diligently back tested your system, you should have
the confidence that it will turn out in your favour. Even if it doesn’t, you
would have anticipated and prepared for it by minimizing your losses.

Understand that losses are part of the trading process. Even if you do lose,
it’s not a failure if you treat it as a lesson. Think of it as paying the school
fees to learn a lesson every time you’ve made a loss.

In other words, think like a casino owner. The casino owner won’t be overly
concerned about a lucky gambler who won the jackpot today because he/
she knows that by the end of the month, the casino will still be in profit
since most of the gamblers will lose money and hence making money for
the casino.

© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

In short, BIG PICTURE thinking is the key to help you deal with every loss
that you have. As long as you know that you will be profitable in the long
run, the loss that you are experiencing now is insignificant.

SECRET #9:
UNDERSTAND THE KIND OF TRADER YOU ARE

As you improve as a trader, you will start to understand your risk appetite.
If you are somebody who is a risk taker, you might prefer to trade using a
smaller time frame. Whereas if you are more conservative, you may choose
to trade using a longer time frame.

Whether you are a scalper, day trader, position trader or swing trader, you
can still be profitable either way as long as it suits your timetable and
personality.

The world class traders will trade according to their personalities and risk
appetite.

© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #10:
DEEP THIRST FOR KNOWLEDGE

Strive to learn something new every day about

the market that you are planning to specialize in.

Read books, listen to podcasts and watch online

documentaries during your daily commute.

Again, this is something that most traders aren’t

willing to do because most of us want quick
profits. If you are willing to do this, it will increase
your chances of success as a trader.

SECRET #11:
HAVE A SIMPLE SYSTEM

Most people have the misconception that trading is supposed to be an

extremely complex endeavour.

Some of the most successful traders in the world have simple systems.
They do not try to combine all the indicators and fundamentals into one
analysis and hoping that it will all go well.

Over the years, I’ve realized that having as little indicators and lines on my
chart works better than cluttering my chart with multiple filters.

One of the benefits of this strategy is that it helps you identify your
mistakes easily in the event that your trade goes against you. You
will know exactly which indicator works for you and which one
doesn’t.

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 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #12:
ALWAYS STICK TO YOUR TRADING PLAN

This comes back to discipline. When greed and fear comes into play, it’s
easy to get into a trade that you’ll end up regretting eventually.

This is the reason why some trading floors around the world only hire
former student-athletes or marines instead of top finance graduates. They
understand that knowledge alone won’t help if the trader does not have the
discipline to stick to the plan.

90% of the traders out there are easily controlled by their emotions. If you
want to be part of the top 10% of the consistently profitable traders, you’ll
have to have the discipline to stick to your plan regardless of the market
conditions.

SECRET #13:
BACK TEST YOUR IDEAS BEFORE IMPLEMENTING THEM INTO
THE MARKET

When it isn’t a good day to trade, spend that time of yours to back test
and sharpen your sword. When the time comes for you to pull the
trigger, you’ll be ready and confident. Rob Booker says it best,
“Become a back tester first and trader second”.

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© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #14:
SURROUND YOURSELF WITH PROFITABLE TRADERS

Successful traders don’t go around hanging out with broke people. They
also don’t go around having coffee with traders who blames everybody
else for their losses but themselves.

If you want to get into the ranks of the top traders, find out who they are
and start associating with them more often.

Alternatively, join a community of traders. I find this the most effective way
to prevent yourself from throwing in the towel because you will always
have a supportive network to keep you going.

SECRET #15:
UNDERSTAND THAT YPU CAN LOSE MONEY FOR A FEW YEARS
BEFORE YOU BECOME PROFITABLE

Why do we spend more than 10 years and tons of money getting a

university education and yet not willing to spend 2-3 years paying school
fees to learn trading?

That’s because most people have this notion that trading is supposed to
be easy and that they can become a millionaire within 3 months of learning
how to trade. They aren’t willing to pay the price. I believe that’s not you,
especially if you are reading this.

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 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #16:
FIND A TRADING SYSTEM THAT SUITS YOUR PERSONALITY

Your personality will determine the time frame that you trade in.

If you are a risk taker, then you will be suitable to trade in shorter time
frames. If you are a conservative person, you will suit the longer time
frames.

SECRET #17:
BE DECISIVE

Without risk, there are no rewards. As long as your indicators are proven
and tested to generate real results, learn to take action immediately once
the markets are in your favour.

SECRET #18:
NEVER EVER GIVE UP!

Most traders do, don’t they? They make a few losses and they are out of
the trading floor the next morning.

They blame the market, their boss, their broker and their trading platform
except themselves! These are the traders who will go back to their day
jobs and tell their colleagues that trading doesn’t work and that it is risky.

Everybody knows that these are nothing but excuses for those who have
given up. In fact, it’s a profession that brings to the table a lot of stress.
It’s a game of survival of the fittest.

If you want to make it in this trade, you’ve got to be able to take

the hits.

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© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

SECRET #19:
BE CONFIDENT IN YOUR SYSTEM

Back test your system to convince yourself on the effectiveness of it. If the
results of your back test are relatively positive, stick to it and be confident
in it.

SECRET #20:
BECOME A SPECIALIST

A lot of traders, especially forex traders, tend to trade many different

currency pairs all at once.

However, I’ve observed that some of the best traders out there are
specialists. Meaning that they trade only 1 to 2 currency pairs.

Reason? Different currency pairs behave differently especially in terms of

the volatility. The more you spend time in that currency pair, the more you
can understand the behaviour of it.

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© Copyright Karen Foo. All Rights Reserved.

 20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

TO END OFF…
Before I end off, these are just some basic tips to provide you with a good
head start in trading. Of course, the journey does not end here, there are
tons of details to be learned in the areas of trading psychology that I will
share in the subsequent programs or seminars and you are always
welcomed to join me in this exciting journey together.

For more trading tips and updates, follow my Youtube channel at :

https://www.youtube.com/KarenFoo

Feel free to drop me a message anytime if you do have any questions!

TO YOUR TRADING SUCCESS!

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© Copyright Karen Foo. All Rights Reserved.

20 SECRET PSYCHOLOGY OF WORLD-CLASS TRADERS

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