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The goal of every trader is to achieve greater success. They want more consistency, more benefits, and more time to enjoy life. These goals are very worthy, but few traders achieve them. are you related to this?
Daily, weekly, monthly or yearly, set a profit target (get ‘x’ profit), set rules (follow your trading strategy perfectly), set desires (I can’t win). Don’t let emotions cloud my judgment), but somehow you seem to never achieve these objectives. find a way to lose stability in theI feel like I’m living in a movie marmot day — relive the same thing over and over again.
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why is that?
This is because “the same way of thinking that created the problem cannot solve the problem”. You’ve probably heard this phrase — it’s from the great Albert Einstein. Another variant of it is “What brought you here won’t take you there.” And if you think about it, it makes perfect sense. How can you expect to be successful in trading if you continue to be the same person who produces the results you are getting now? I’m not saying you need to be a different person, but at least you need to change a few things — your trading psychology!
The next level of your trading comes with the next level of your mindset. What does this mean? You have to introspect, search within yourself, and explore the beliefs, stories, and patterns that make you who you are today, but they don’t work well in trading.
I’m talking about things like:
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A steadfast stubborn: The reality of trading is that you don’t get the kind of security you get with a job at Time Clock Punch. Instead of paying timely salaries, markets offer rewards and bonuses to those who are adept at strategic risk-taking.
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Fear of failure: Failure is a very important part of success in life. So fear of failure prevents us from reaching our full potential.
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Unable to see own bias: As traders, we need greater ability and readiness to see through our own illusions and delusions and to self-correct on the fly.
Related: How Mindfulness Helps Traders Succeed
Ask yourself these questions
There are other systems of beliefs and behavioral tendencies to discover about yourself, but I think those are the main ones. Below are some questions you can ask yourself to uncover what is holding you back.
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What are my biggest fears and questions when it comes to trading and investing?
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Is my approach to trading too conservative or too risky? Why?
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What are my strengths and weaknesses as a trader and more broadly as a human being?
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What are my limiting beliefs about myself, the market, or trading in general that might hold me back?
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What external factors, such as market conditions or economic events, do you use as excuses for not meeting your trading goals?
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What changes can I control? what is not?
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What steps can I take to improve my trading psychology and technical skills?
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Are you setting realistic and achievable trading goals?
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What is it about the loss that upsets me so much? why? What if I wasn’t so afraid of loss?
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Are you consistent in your trading approach or do you constantly change your strategy?
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What personal or life factors affect your ability to focus on trading and make sound decisions?
It’s important to ponder these questions and be honest with yourself. Your answers will help you identify beliefs, excuses, patterns, and stories that are not helping you succeed in the marketplace. And pondering those answers can really make a difference in your trading psychology.
From there, ponder the following series of questions.
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What do you want to achieve with your trading starting now?
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What beliefs would you like to internalize as of today?
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What will be unacceptable in trading?
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List three objective, measurable action steps you can take daily, weekly, or monthly to keep moving towards your trading goals.
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How can I continue these steps from thick to thin?
RELATED: Trading Psychology 101 — How Traders Manage Their Emotions and Become Successful
look inside yourself
As of today, reject mediocrity. Reject the thoughtless way! Most traders live on autopilot, executing their presupposed beliefs and patterns in the market. Again, the next level of trading comes with the next level of mindset. We are asking you to reject what doesn’t work and focus all your attention, energy and time on developing the beliefs, habits and behaviors that work. No — you have to look inward and take control of your life. Because it doesn’t work as it stands! It doesn’t work!
We understand that looking inward can be a difficult process because not everything you discover about yourself is beautiful, shiny, or sophisticated. There are many aspects. There is a lot of pain in our hearts and minds because life is not fair. And facing it all takes a lot of courage because it’s uncomfortable. It is a rewarding journey. “If you face your fear, you are certain to die of your fear.” Have you ever heard this saying? That’s exactly what I’m trying to express here.
To make things clearer, let’s give a concrete example. I worked with traders, high net worth individuals trading US stocks, basically in the first hour of opening in New York. He has a very rudimentary trading strategy — he identifies long-term trends (every week), zooms in to five minutes, and trades long-term trends with tight stops just below his hourly lows at the beginning. Place the deal in the direction.
As you can imagine, given how tight his stops are, he spends his time reaping losses every single day. When he’s wrong, he’s wrong quickly, but when he’s right, he can stay on that deal for months and ride that sucker to Valhalla.
However, this trader was constantly haunted by the fear of returning open profits, so he often let go of positions prematurely. A small profit is not enough as the win rate is very low. He needs the occasional huge gain to offset many small losses.
So our collaboration consisted of identifying his limiting beliefs and emotional triggers. I helped him erase unproductive beliefs he was holding onto and develop a more positive and carefree approach to trading outcomes. introduced the technique.
If he had continued to trade with the same kind of behavior and mindset that brought him the results he got, he would have been stuck at the same level year after year. The next level of trading comes with the next level of thinking.
What beliefs, stories, and patterns do you hold, consciously or unconsciously? Ponder this question and the one above. Take your time and write down your answers. The possibilities are endless and await you in terms of growth and trading success.