Mastering Mindset and Practices in Trading

Alaina Gibbs

Alright, so let’s talk about one of the biggest misconceptions out there—this idea that trading is some kind of get-rich-quick scheme. You know, the flashy YouTube ads with people claiming they made six figures overnight? It couldn’t be further from the truth.

Natalie Harper

Oh my gosh, those ads. The ones where they’re lounging on yachts? Like, come on, we all know they’re just rented for the day.

Alaina Gibbs

Exactly! And that’s where so many beginners get tripped up. They jump in thinking they’re just gonna guess their way to success or, worse, rely on some magical “one-click strategy.” But, in reality, trading is a skill—a craft, really—that takes time, effort, and, most importantly, discipline.

Natalie Harper

And patience, right? Like, a lot of it. You can't just expect to double your portfolio by next Friday.

Alaina Gibbs

Absolutely. I remember when I first started, oh, I was terrible at reading candlestick charts. It felt like I was looking at hieroglyphics. I’d sit there for hours trying to figure out if what I was seeing was, you know, a reversal pattern or just noise. And then there’s the market volatility—it’s brutal when you don’t know what you’re doing.

Natalie Harper

Wait, didn’t you say you lost, like, half of your account early on?

Alaina Gibbs

I did. A Gold trade gone bad! I'll never forget it! I didn't know my trading platform well enough. basically-I didn't practice enough. I panicked and placed a new order instead of closing the previous one first. which created a spread that I knew nothing about at the time. By the time I got a hold of the help desk, I had to kiss 35 hundred dollars good buy- it’s humbling. I could’ve quit right there. But learning from that loss and others—it’s what made me a better trader. Looking back, it was never about beating the market. It’s about mastering yourself, and your mindset, and sticking to a strategy no matter what’s happening. That’s where the success comes from.

Natalie Harper

Right. And that’s what you see in the greats, too. Like, wasn’t Paul Tudor Jones all about discipline?

Alaina Gibbs

Exactly. He’s one of the best examples. Jones famously said, “The most important rule of trading is to play great defense, not great offense.” That’s the kind of mindset we’re talking about. It’s not about taking every trade and hoping for a win—it’s about protecting your capital and only striking when the odds are stacked in your favor.

Natalie Harper

So, no lotto tickets or taking shots in the dark?

Alaina Gibbs

Exactly. You just—

Alaina Gibbs

You know, Natalie, when traders hit a rough patch, it’s not really about their strategy failing. It’s almost always their mindset breaking down—that’s where the real challenge lies, staying disciplined when things don’t go your way.

Natalie Harper

Oh, a hundred percent. I mean, markets are already chaotic enough—you throw emotions into the mix, and you’re begging for trouble.

Alaina Gibbs

Exactly. Take fear, for example. How many traders panic when a position moves against them, and before you know it, they’re closing out early or doubling down impulsively? A resilient mindset—a mindset that sticks to the plan—that’s the thing that can save you every time.

Natalie Harper

Right, like, the plan is there for a reason. You gotta trust it. And hey, speaking of plans, let’s dive into those risk strategies you’re always talking about. The 1% rule—it’s seriously one of my favorites.

Alaina Gibbs

Oh, me too. So, for anyone who doesn’t know, the 1% rule is simple. You never risk more than 1% of your trading capital on a single trade. It’s about staying in the game long term—because if a few trades go sideways, which they will, you’re not wiped out.

Natalie Harper

And, just to add, it’s funny how traders sometimes treat "calculated" and "reckless" risks like they’re the same thing. When I was first learning about this stuff—

Alaina Gibbs

Oh, here comes a story.

Natalie Harper

Haha, yeah, buckle up. So, late one night, I’m bingeing these trading podcasts, and this guy’s just going on and on about how he flipped his account with one "all-in" trade. And I’m sitting there, notebook in hand, thinking, "This guy’s a genius."

Alaina Gibbs

Oh no.

Natalie Harper

Oh yeah. Turns out, he lost everything the next week—and I’ll never forget what he said after. "It wasn’t the market that ruined me—it was me." Talk about a lightbulb moment. That’s when I got what calculated risk means. It’s not crossing your fingers; it’s thinking ahead strategically.

Alaina Gibbs

Absolutely. It’s why we focus so much on things like trade size, stop losses, and, honestly, just walking away sometimes. Discipline and risk management are what separate the hobbyists from the professionals. Without them, you’re gambling, not trading.

Natalie Harper

And that’s where mindset comes in again, doesn’t it? Like, sticking to those rules—it’s not easy. That’s why this stuff is so important to talk about.

Alaina Gibbs

Exactly. Building that strong mindset, and trusting your strategies—it changes everything. The markets might be unpredictable, but how you respond? That’s always in your control.

Alaina Gibbs

Now that we’ve covered mindset, let’s bridge that with some actionable steps—because without consistent practices, even the best mindset can waver. The first cornerstone habit every trader should adopt? Start a trading journal.

Natalie Harper

Oh, for sure. And, let me guess, this isn’t just about jotting down wins and losses, right?

Alaina Gibbs

Exactly. It’s about logging your trades, your setups, even your emotions in the moment. What made you enter? Exit? What worked and what didn’t? It’s like keeping a mirror on your habits, and over time, patterns start to emerge. You can’t improve what you don’t track.

Natalie Harper

Right, it’s almost like therapy but, uh, for your trades.

Alaina Gibbs

In a way, yes! Consistency is key here. Making it a part of your routine—even if it’s just a quick note after each session—keeps you accountable. And accountability? That’s where discipline is born.

Natalie Harper

Speaking of discipline, what about self-doubt? I mean, every beginner hits that wall where they’re like, “Am I even cut out for this?”

Alaina Gibbs

Oh, let me tell you, self-doubt is a sneaky little companion in trading. When I first started coaching others, I watched my students succeed in ways I hadn’t yet. And I thought, “Wow, maybe I’m just not meant to make this work.” But—and this is the kicker—that success reminded me of what's possible. It reignited that drive to keep going.

Natalie Harper

Wait, so your students motivated you? That’s kind of amazing.

Alaina Gibbs

It was humbling, honestly. It showed me that consistency, replicable processes—they work, even if your confidence wavers. You just have to trust the system and lean into the discipline. Motivation will follow.

Natalie Harper

Okay, so for all the newbies listening right now, what’s, like, the starter pack for getting all this right? The “first steps” checklist?

Alaina Gibbs

Great question. Here’s a simple one to get started: First, define your risk. Use stop-loss orders like your life depends on them—that’s your safety net. Next, pre-plan your trades. Know your goals, and your entry and exit points, before you even hit the trade button. And, of course, keep that trading journal. Write it all down.

Natalie Harper

And don’t forget to take a breath, right? Panic trades never work out well.

Alaina Gibbs

Exactly, Natalie. Trading is about preparation, not perfection. It’s a long game, and every small step forward builds confidence and, dare I say, competence. Little by little, you get better, but only if you commit to the process.

Natalie Harper

Love that. Trading isn’t this big, scary mountain—it’s a bunch of little steps on a trail. You just have to keep putting one foot in front of the other.

Alaina Gibbs

Exactly. And on that note, let’s wrap this up by saying: Take your time, build good habits, and always put consistency over intensity. Trading isn’t about sprinting; it’s about showing up every single day.

Natalie Harper

Couldn’t have said it better. And that’s all for today, folks! Thanks for tuning in, and remember—trading success doesn’t happen overnight, but with the right mindset and practices, it’s absolutely within reach.

Alaina Gibbs

Absolutely. See you in the next episode- and happy trading!