When it comes to finding success in the stressful world of trading, the right psychological makeup is the key to success, says Justine Pollard.

When it's nap time for her children - Jemma, 3, and Luke, eight months - Pollard pulls out the laptop and starts trading. She started with shares and has since moved through options to contracts for difference (CFDs).

"All of the top traders I have met and read about say psychology is the key to successful trading," she says.

"I didn't understand this until I started trading full-time and had to come to terms with the emotional swings and internal dialogue you experience while in a trade.

"It took me some time to realise how important your mindset is in becoming a trader.

"In the end it's what makes or breaks you in the markets."

She says she has learned more about herself since she began trading in the markets full-time than in any other job. "I can say now that it has been a wonderful journey of self-discovery and growth, but in the first year it definitely did not feel that way."

When she first set out to take on the world of trading, Pollard sat down and worked out her strengths and weaknesses.

"I was a highly organised, determined, motivated and goal-oriented person, so I felt these characteristics would give me an edge," she says.

"However, I lacked patience and had a tendency to beat myself up after losing an existing trade."

Patience as a trader was elusive, she says. "I was always afraid of missed opportunities and the need to be in the market was very overpowering."

She became attracted to options trading. "Everything seemed to happen fast with options; in only a day or two you knew your trade was a winner or loser. The only problem was that I did very well in my first few months of options trading and started to focus on money rather than on good trading."

It caused her to overtrade, she says, which is not a very successful market strategy. "These are some of the issues I had to learn to deal with as part of my psychological development as a trader."

Pollard now says she prefers to trade in CFDs.

"I have traded a range of derivative instruments over the years and CFDs are my favourite.

"They are similar to trading shares and they don't expire like options and warrants. You can trade them in any time frame and they offer many benefits over share trading - such as low margin requirements, the use of guaranteed stop-loss orders, the ability to short-sell and a wide choice of global markets and different CFD instruments - shares, indices, commodities, foreign exchange and the like."

She says trading on the stockmarket is about challenging yourself.

"You will confront your own demons and you will hear that little voice inside your head that will put you down. It will tell you that you are not worthy, that you can't trade the markets, that you don't have what it takes, and other silly thoughts."

When you overcome those hurdles in your mind and trade the stockmarket in a disciplined way you can grow, she says.

A trading diary was a good way to understand your strengths and weaknesses as a trader, she advises. "Record the thoughts and emotions you experience each day. At the end of each week, review what you have written to determine if there are any patterns or bad behaviour that are limiting your trading potential and look at ways of overcoming these."

Seeking help from a mentor or sourcing books would further trading skills, she says.

"You are the most important factor in your trading. You are the one who makes the decisions and you are the one who decides what happens once you open a trade. It is what goes on inside your head that will make or break you as a trader."

You should develop self-awareness and understand your motives for trading, she says.

"Trading is not just about making money. It's about becoming the best trader you can possibly be."

Pollard has become so adept at trading she has even set up a website, http://www.smarttrading.com.au, offering private tuition over the phone.