10X Your Mindset, 10X Your Trading PnL
Welcome to The Guided Trader’s Journey Newsletter!
The purpose of this newsletter is to: 1) stop new traders from losing all of their capital; and 2) build the foundations for long term trading success.
Let’s get into it!
Welcome back!!
I hope everyone is busy building their own trading processes and navigating the ups and downs of the markets!
This week I want to talk through what I learned from Steven Goldstein.
Steven was a trader at the highest level and is now one of the world’s leading trading performance coaches.
To be honest, the mental side of trading is definitely a weak point for me so I’ve reflected a lot of what Steven said in the interview.
I’ve pulled out my 10 biggest takeaways on “bulletproofing” your trading mindset.
(Not sure bulletproofing is a word but I like the sound of it lol)
Let me know your thoughts!
Letting Go: The Unseen Power in Trading
Letting go is a super power in trading.
It’s the ability to release the ego’s need for control, perfection, and instant results and instead focusing on the process.
It’s the classic: process focus v’s outcome focus
The ego wants certainty and immediate validation via quick wins.
Trading is full of uncertainty, so it’s pretty self explanatory as to why the ego may not have your PnL’s best interest at heart.
By learning to let go of the ego and remain grounded, traders can achieve better results, focusing on process rather than the ego’s need to be right.
Self-Perception and Trading Success
Traders often view themselves through a warped lens, which can lead to distorted self-criticism.
According to Steven, this is common—many successful traders still struggle with feelings of inadequacy, especially during challenging periods.
It’s helpful to step back and remind ourselves of past achievements and the external factors that can sometimes work against us.
This recognition prevents self-sabotage and strengthens the confidence needed to handle challenging market conditions.
A little compassion goes a long way.
Turning Setbacks into Strengths
Every trader has setbacks.
The most successful ones know how to learn from these challenges and move on quickly. The key is to forgive oneself, not dwell on the “missed” opportunities, and refocus on the next steps.
This ability to accept and forgive yourself for setbacks creates a mental environment that allows traders to focus on future opportunities instead of past mistakes.
Most importantly, embracing failures will mean we’re not down and out for too long.
Learn, iterate, improve and get back in the game because the market will open on Monday morning.
Recognizing and Preventing the “Death Spiral”
The “death spiral” is a state of unchecked emotions leading to a cycle of impulsive decisions and mounting losses.
It’s easy to get trapped in this cycle, often without even realizing it, as the impact of subtle emotional influences grows over time.
By spotting early warning signs, traders can avoid entering the death cycle.
This might sound easy, but it takes A LOT of self awareness.
An awesome trader, Garth Mackenzie, told me that he physically separates where he does analysis v’s where he puts in orders, which I think is the right approach.
You have to find what works for you, but try to create space for awareness.
Little moments where you can take a breath and really take stock of who is putting in the order.
What happened before the trade?
Are you at 100% or 75%?
Are you increasing your risk, was that part of the plan?
Creating space and recognizing these signs early-on can prevents a spiral of bad decisions.
Trust me, if you’re in an unchecked death spiral, you can hurt your PnL quite quickly.
Staying True to Your Own Process
In trading, following someone else’s strategy or taking trades based on outside influence can undermine confidence, making traders second-guess their actions.
I’ve heard quite a few traders saying that often the best trades tend to go against them initially, so if it’s not your idea and you don’t have full confidence in it, you’re very likely not going to take the heat.
To succeed, traders have to build and trust their own process.
This isn’t just about using a particular strategy; it’s about aligning trades with their unique strengths, knowledge, and approach.
I’ve made this point a lot recently, so just do it, you’ll thank me later.
The Importance of Self-Compassion
Trading is hard.
It’s a game where we lose reasonably often and not only that, we may have to miss opportunities too.
The longer you spend beating yourself up, the more damage it will do to your mindset.
So have a bit of self compassion.
We’re only human and markets are inherently uncertain.
Having self compassion will allow you to forgive yourself, build resilience and move on.
There will always be another trade and you need to have enough mental and financial capital to fight another day.
Mastering the Art of Detachment
Traders who succeed in the long run understand the value of being detached from their initial view and outcome.
Things are rarely static in markets and views can change.
Fundamentally or technically the setup may not be as strong as it was in day 1.
Great traders can objectively assess their current position and if it’s not the same, cut it and move on.
When traders become “married” to an idea, they lose sight of the bigger picture and often miss new market cues.
To quote the great Peter Brandt: “Strong opinions, loosely held”.
Reducing Behavioural Slippage to Reach Full Potential
Behavioural slippage is the difference between a trader’s potential and their actual performance.
And it’s not just in trading, it’s in everything.
It’s the gap between what you “could have” achieved and what you actually achieved.
By identifying the sources of slippage traders can make adjustments to reach closer to their full potential.
Top traders minimize this gap by working on their process continuously, ensuring that performance aligns with potential more often than not.
Trading as a Performance Activity
Trading is, at its core, a performance-based activity, similar to elite sports.
Just as athletes need to show up ready for each game, traders should also show up every day with the right mental state every day.
This state is known as the “being phase” in Steven’s performance process.
Mastering the “being phase” allows traders to enter the market free from biases, unresolved emotions, or the baggage of previous trades.
When traders engage from a clear, present-minded state, they perform more consistently and can respond to the market.
Self-Awareness and Coaching: A Game-Changer
Weirdly, I’ve found that just awareness in itself is sometimes enough to bring about change.
Working with a coach, in particular, can be a powerful way to increase self-awareness.
It allows a veteran trader and most importantly someone external to see the patterns, blind spots, and biases that often drive decisions.
Of course there is also the practicality of learning how to actually trade from a seasoned trader.
But they also provide the space for you to become your own trader and bring awareness via feedback during that process.
If you can’t afford a coach, start a trading journal.
It’s something I’ve been really poor at, but have just started doing consistently.
You’ll be surprised at what you learn.
Hope you enjoyed this newsletter, see you next week!
(This newsletter is not investment advice, all views are my own.)
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