Successful trading isn’t just about strategy—it’s about mindset. One powerful psychological tool you can use is mental contrasting —a process that helps balance optimism with pragmatism.
In trading, mental contrasting means setting clear, ambitious goals while also anticipating challenges and planning for them. This approach keeps you focused, disciplined, and prepared for inevitable setbacks.
Mental contrasting involves two key steps:
1. Visualizing Success (Optimism) – Set specific, ambitious, and realistic trading goals. This could be something like: “I will grow my trading account by 20% this month” or “I will stick to my trading plan without emotional decision-making.”
2. Identifying Roadblocks (Pragmatism) – Instead of assuming success will come easily, think about potential obstacles and plan how to handle them. Some common challenges include losing streaks, chasing trades (entering late due to FOMO), and technology breakdowns (internet outage, platform glitches).
For each obstacle, create a plan of action. By acknowledging these roadblocks in advance, and knowing what you’ll do when they arise, you’re less likely to be emotional and ineffective.
Traders often fail because they either are too optimistic and assume success will come easily, or too negative and let setbacks discourage them. Mental contrasting balances these extremes. It helps you stay motivated while also keeping you grounded in reality.
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To your trading success,
Mike Siewruk
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