The Psychology of a Winning Trader


The stock market closed scorching hot on Friday…and finished with its best weekly gains of 2019. The S&P 500 surged by 4.4% and the Dow gained over 1300 points on the week.

Thanks to a dovish Fed and some weak economic numbers.

Now, I like to brag about how momentum stocks often trade on their own… that they don’t correlate with the overall market… which is true.

So a hot market doesn’t always equal a hot trading week for me.

That said, many of the stock trades I put on, simply didn’t work… and that’s part of being a trader – comfortable with being wrong and understanding that you can’t win every day.

I took almost two months off from trading…my ego is telling me to go full throttle… but realistically I should be working myself back in.

I even told my Millionaire Roadmap clients to forget about what I’m doing now and to focus on what Nathan Bear is doing.

I’m glad that some of you are listening:

“Good morning JB. I need to let you know I listened to your advice and focused only with Nate Bear setups and studied his material with my under 1K account. The month of May I was green $425 or 17% with 7 winners and 2 losers. This was my first green month this year.”

If you don’t know Nathan’s story let me tell you it:  he’s a former client of mine who has been trading stocks since 2008.

However, he was stuck in the mud for 8 years and his account was in the red (-40K)… living in an 1100 sq ft home with his family of six…

…that is until he found the Millionaire Roadmap program…  and went on to turn a $37K account to nearly $2M since joining.
 


(Father of four, and part-time trader, Nathan Bear had 15 +100% options winners this week. He teaches in the MRM chat room every day and shows clients his trades and real-time alerts. Not an MRM client? Then Join Now. )

The tail of two traders.

Here I am, analyzing and reviewing trades to get my mojo back. And on the flipside, Nathan is turning this market into his personal cash register….by knocking down fifteen +100% options winners.

And helping so many people along the way:

JB…up $12k on $25K account thanks to Nate Dogg….lol ~ Philip G.

Wow. Up $3920 since yesterday close. Green is good. Still digging out of a hole but well on my way. Thanks Nate and everyone. ~ Bryan A

TX Nate 25,000 to 38,500. in 2 days! ~ Kathy U.

Kudos to Nate and MRM. Started with 22K the week and ending with 35K. Thanks a lot.~ Omar A.

went from $800 start of the week to $2500 at the end of the week!! thanks nate. small account playing one contract at a time. ~ Y.C.

 up $8300 today. super happy w that. flat everything until Monday. helps sleep. ~ Travis R

 not a record day, but this is the first week i followed only the TPS pattern and i made $4k in the last three days! ~ Jason M.

(Nice week Nathan! And great job to all the guys and gals who are learning and applying what Nathan is teaching you. There is only one chat room you can find Nathan Bear, and its MRM, Join Now.)

Now, if you ask Nathan what he is most proud of, he’ll tell you that his success as a trader has changed his family’s life for the better… and it will give his children opportunities he never thought would be possible.

Of course, when you get on such a hot streak, and everyone around you is giving you high fives… your ego can really mess with you…

But regardless of how great and big you feel… the market is bigger than all of us… and can humble us quickly (something I know oh too well).

Nathan is fully aware of his accomplishments this week… but also knows that this is a dangerous time… because this is when most traders in his shoes:

  • Get loose and sloppy with their trades.
  • Trade bigger because they think they’ve figured it all out.
  • Stop doing research and working hard because they feel invincible.


But you know what?

Nathan is mindful of the dangers of trading with an inflated ego. As you’ll find out later, when he’s interviewed by Ben Sturgill, of the WealthWise Podcast.

Luckily for MRM clients, it means that will be spending most of the week teaching his strategies to clients and sitting on his hands.

However, it would be a shame if we didn’t go over some of his trades, especially his +1000% winner in MDB. Along with triple-digit winners in ROKU and WIX.

Read on for the details about those trades, as well as, Nathan’s exclusive interview with Ben Sturgill of the WealthWise Podcast.


The 100%+ Winner Trading System



Last week, Nathan Bear (one of my former students) caught on fire last week… knocking down a string of 100%+ winners… using his TPS system.

For example, MongoDB (MDB) was one winner he had… one of the trades was good for 1,000%+! Don’t believe me? See for yourself…


Now, if you don’t know what the TPS system is… Nathan is looking for a trend, a specific chart setup or pattern, and a squeeze.

Let me show you the basics of that with an example of one of his winners.

Nathan was watching this chart in Roku Inc. (ROKU) – of course, he sent an alert and the chart to clients.


If you look at the chart above… ROKU was clearly trending higher, disregarding the market selloff not too long ago.

Well, thereafter, ROKU formed a bullish pattern (the bull pennant / bull flag pattern).

If you don’t know what the bull pennant pattern is, we’re looking for the stock to have a strong run-up… followed by a period of consolidation.

You see, momentum stocks like ROKU can’t just go straight vertical… it’ll go up, stall, and then runup again.

So that took care of two parts of his three-step approach.

Next, Nathan Bear was looking for a squeeze.

If you look at the bottom of the chart, you’ll notice some bars… no these are volume bars… it’s actually the TTM Squeeze indicator.

With this, Nathan was looking for the TTM squeeze indicator to break above the zero-line, which would indicate the stock could move to the upside… all you’re really waiting for here is for the red bars to get above a level.

Here’s what happened with that trade.


Now, he had so many more trades like this… so I’ll just go over one more example before I get into the psychology of having a winning mindset.

Check out this chart in Wix.com (WIX).


Does this look a bit familiar to you?

It’s kind of line ROKU right?

WIX is clearly trending higher… and it was forming the bull flag / bull pennant pattern.

Again, Nathan was looking at the TTM Squeeze indicator.

With the stock starting to run higher and a bullish setup… he was anticipating the indicator to break above the zero line, an indication the stock could run higher.

Just by using his TPS system, the options he bought were up 100% on Friday…


Now, it’s great to have a string of winning trades… but there are a few things you need to keep in mind when you’re trading.

You might be wondering, “What’s Nathan going to do next?”

Sitting on his hands and remaining patient.


The Winning Trader’s Mindset



Trading isn’t like playing basketball… where you’re knocking down shots like Kawhi Leonard… then calling for a heat check…

… with trading, it’s best to focus on the process, not the profits.

Nathan Bear will be the first one to tell you, he’s going to sit on his hands and be patient after his legendary performance last week… because he understands the psychology of trading.

When you’re riding hot… it’s very easy to start gambling. Heck, it happened to me a few months ago…

….when I was riding hot trading small cap stocks, thinking I could just start trading options… and that didn’t end very well for me…

… it’s happened to Nathan in the past, and he knows that after a week where nearly every trade you touch turns to gold… it’s very easy to let your ego get in the way, thinking everything you’re doing will be right.

Especially when you trade options like Nathan and Jeff Bishop do, and consistently locking in 100%+ winners… you can get into the mindset of buying “lottery tickets”.

You see, with options, if your ego gets in the way, you might just start slinging options, getting into a bunch of trades… and have the lottery ticket mindset – thinking every options trade you get into will work, and you’ll make a bunch of money.

However, what can happen is your thesis is wrong and the options premium gets sucked out… and you give back all those gains you worked so hard for.

When you let your ego get in the way, you start to focus on the profits and making money… when you should be focusing on your best setups.

Well, Nathan Bear sat down with WealthWise Podcast host Ben Sturgill the other day to discuss his performance his next moves last week…

… and he mentioned he would remain humble and not let his ego get in the way because if he does, he can give a chunk of the six-figures he made last week. You can listen to it below.


You might be wondering, “Jason, why are you bringing this up, shouldn’t we just be focused on winning and piling on risk when we’re up money?”

No.

When you make money, you should look to protect it…

… and there were a few traders in the Millionaire Roadmap chat who also lock in some triple-digit winners… some even doubled their accounts…

P.G. : JB…up $12k on $25K account thanks to Nate Dogg….lol

B.A. : Wow. Up $3920 since yesterday close. Green is good. Still digging out of a hole but well on my way. Thanks Nate and everyone.

K.U. : TX Nate 25,000 to 38,500. in 2 days!

O.A. : Kudos to Nate and MRM. Started with 22K the week and ending with 35K. Thanks a lot.

Y.S.C. : went from $800 start of the week to $2500 at the end of the week!! thanks nate. small account playing one contract at a time.

K.S. : JB: took $9900 realized today and sitting on some $3,000 winners over the weekend!

K.P. : not a record but up 3983 realized today

M.K. : JB: $10,000 for me in 2 days!

J.L. : Im up $21,167 right now

J.M. : not a record day, but this is the first week i followed only the TPS pattern and i made $4k in the last three days!

T.R. : up $8300 today. super happy w that. flat everything until Monday. helps sleep.

(If you want to learn more about MRM and how it’s help three traders turn the corner and become millionaires, click here to find out how)

It’s great to see all of these traders having success, but they shouldn’t let their egos get in the way… because next week, their trades might not all be gold.


That said, Nathan will remain focused on setups providing good risk-reward using his TPM system… and not take massive positions…

… if you’re on a hot streak like Nathan, kudos to you… but remember to review your trades and take a step back, focusing on taking small risk and your best setups.

Now, if you want to read more trading lessons like these, bookmark this page here… or if you’re ready to take the same steps that Nathan Bear did to turn $37K into nearly $2M, click here to get started.

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