Lesson 16 how to make foundational changes to your trading psychology. Welcome to Lesson 16. My name is Sam ADA. I'm a global macro Currency Trader and the owner of effects Renu calm. This is the advanced forex course for smart traders. market was at birth coldness said, the emotional burden of trading is substantial.
Mastery requires a willingness to commit to changing yourself. It's so self work that you get from where you are to where you want to be. When we approach the markets, we bring with us our personal problems and a number of biases that arise from the way our brain works. In many ways, we are poorly wired to be good traders. Our natural inclination is to cut our profit short and hold on to losses, the exact opposite of what works. Over time, if we can work through issues.
Not only will we become better traders, but it can have great benefit to our lives. Many traders report that the self development that they have gone through to become a good trader has had a transformational impact on their personal life to trading is 100% psychology market was advanced that believes that trading is 100% psychology. When you are trading the markets, you are trading, not the market itself, but your beliefs about the market. your beliefs are 100% psychological, that's trading as to. He also believes that anyone can be taught to trade by modeling the mental states and strategies of top traders. If you know what they do, and you can copy them, then you will be successful.
When it's not referring to a trading strategy that a trader might use, rather, he is talking about the way they conduct themselves in the market. This includes emotional control, discipline, viewing, trading as a game, not caring about money, etc, which we talked about in the last lesson. Where people fall down is even if they understand what it takes to win in the markets. They have stuff that comes up that stuff Some from being successful. This stuff could be a fear of success and aversion to risk taking or a need for excitement, or any number of psychological impediments. Though you know what to do you fail to execute.
Where does this stuff come from? According to ban from the maze of conflicting parts inside each of us. market was admati Swart says I was able to separate my ego needs from making money. You are Miss of conflicting parts inside. Ben supposition is that each of us has a mix of conflicting parts inside. Each of us might have a trade apart and excitement part a child part a parental part, or 200 or more parts, these parts of our vat of experiences we have had in their lives and they generally have good intentions for us, but not always the best intention for trading.
For example, the excitement part wants to make sure we live life to the fullest but this is very dangerous when it comes to trading. Trading out of excitement can lead to excessive risk taking in over trading. You may have a part that was brought up believing rich people are bad, or that money is the root of all evil. This part could hinder your attempts to make money in the market to help you avoid becoming bad. As you can see these parts unwittingly engage in self sabotage. Start with the foundations and the rest will change.
If you want to transform your surface, they will change this will have little lasting impact. If you focus on working on your trading system, you can spend years and get nowhere if the beliefs that you're upgrading from ill served. Instead, if you change the foundation, all the other elements in your trading plan will seamlessly click into place. And anonymous market was it said every market has a rhythm and our job as traders is to get in sync with that rhythm. I'm not really trading when I'm doing those trades, these trading being done but I'm not doing it the same And the art of trading. And then you mark it was as jack swagger interviews and unknown trader in the chip design and the art of trading.
After conducting the interview, the trader decided that he did not want his name published, as he talked about subjects such as Eastern mythology, dreams and intuition, and was worried about what his investors might think. Trading beyond the matrix bent up talks about a super trader who trades in a similar state of consciousness. This trader is consistently able to pull large multiples from the market an hour of trading a day. To achieve deep transformation, focus on exercises that strip away the ego and quiet the chatter of the mind. Anxiety anger in other negative emotions begin to disappear, and you will become more mindful of what's going on. This serves to make you much better at trading creating a self development plan.
It's beyond the scope of this course to cover the large range of psychological topics. They may help you try better. And there are far more qualified people in the field than me. But what I do want to do is encourage you to create your own self development plan. A self development plan will aid you in trading without interference from negative emotions, or non useful part. Exactly how you structure your plan will depend on your personality.
But it's a good idea to think about what you need to do to have the right mental strategies to trade effectively. market was at its a character said, I found it difficult to stay with the system while disregarding my own feelings. I kept jumping on and off often just at the wrong time. The first part of a self development plan is to conduct a review to identify your problem areas. A self review each day or week can give you the space to see what you've been doing right and wrong. If your performance has not been up to scratch, then you want to make sure you notice it.
Self Awareness is one of the first things you need to change Well, specific work around problems. Generally the most difficult part will be identifying any issues you may have. Once you know you have a problem, you can then go about seeking a solution that is accepted if you have what Ben calls emotional charge attached to the issue. If that is the case, you may need to do some clearing work. To learn more about this you can read trading beyond the matrix can bleep man tops peak performance course. portrayed a giant said Don't be here I don't have an ego.
Working on the foundation, you want to be consistently clearing the blockages to your true self and eliminating any negative emotions that arise. To do this make a regular practice of some of the exercises such as meditation, or the Course in Miracles. These practices will also serve to strengthen your connection to your divine technical way And market knowledge. Part of your self development plan should be to improve any technical aspects that need work. Perhaps you do not implement your ideas of the degree of accuracy that you would like, or you don't understand how to use rescue word ratios or multiples. Maybe a system is not achieving the desired result it needs improving.
The trading tribe process and coaching market was its acota believes in the value of having a support group to help you with your trading. One such group is a trading tribe. In his words, the trading tribe is an association of people who commit to excellence personal growth, and supporting and receiving support from each other. In your development plan include how you will meet with traders, they'll help your trading market was an ark Eve also places a large store and value in having the support and accountability of a trading group. You might also need coaching trading is a high performance endeavor. And just like In any other similar high performance fields, coaching can be a big help.
Market was a tom basso said, I think investment psychology is by far the most important element followed by risk control, with the least important consideration being the question of where you can buy and sell high value activities for traders. The following is a list of activities that are targeting change on a deep level income highly recommended to traders. You can read more about these in the written version of this listen. High Value activities include parts integration for interference, feelings release for emotions, reading the book The magic for gratitude. Completing A Course in Miracles for perceptions, dealing with wealth issues using the abundance book. On your mentality, you could read the market wizards books for quieting the mind irritation before thoughts that cause anger and fear, you could go through the work exercise by Byron Katie.
Change can happen overnight. Self work is an ongoing process. Once you get started, you will never stop. But the good news is that change can happen overnight. If you have an issue that you are able to effectively identify and deal with, your progress can be very quick. And market wizards van Tharp gave several examples of exercises that cleared significant blockages in the course of a day with a week or two of follow up integration.
This is particularly true if the changes happen at the foundations. In your coursework for this lesson, you will get started writing a simple self development plan. And then you will choose one or two exercises to begin with this week. Those few moments a day you take to work on yourself could not only change your trading, but your life so don't wait. I'll see you In the next lesson