Thursday, April 24, 2008
Wednesday, April 23, 2008
Bad Trader v's Successful Trader
BELIEFS
Bad Trader:
Money is important
It's bad to loose in the markets
It a battle, war, sea or animal and serious
No need to mentally rehearse each trade
I've lost before I start
Most people approach trading to make money and that is the primary reason they lose. Because money is so important, they have trouble taking losses and letting profits run.
Successful Trader:
Money is not important
it's ok to loose in the markets
Trading is just a game
Mentally rehearsing each trade is important 4 success
I've won before I start
In contrast, when you think trading is a game and play by certain rules, then it becomes easier to follow the rule of cut losses and run profits. In addition, because of mental rehearsal and extensive planning, top traders have already gone through all the trail and error in their mind before they begin. As a result, they know they are going to win in the long run, and it makes little set backs easier to deal with.
EMOTIONAL CONTROL
Bad Trader: No emotional control
Successful Trader: Strong emotional control
DISCIPLINE
Bad Trader: Lack of discipline
Successful Trader: Strong discipline
PATIENCE
Bad Trader: Lack of patience
Successful Trader: Extremely patient
RISK ATTITUDE
Bad Trader: Run losses Cut profits
Successful Trader: Cut Losses Run Profits
FAILURE ATTITUDE
Bad Trader: You can fail
Successful Trader: No such thing, just leant something
TRADING EMOTION
Bad Trader: Fear and greed
Successful Trader: Calm / confident/ detached from trading/ still
STRESS ATTITUDE
Bad Trader: Because failure exist they burn energy trading on stress = follows crowd mentality & irrational choices
Successful Trader: No such thing as failure own mind rational choices
LOOSING ATTITUDE
Bad Trader: Loosing attitude, anxious about losses, blames others for mistakes so has to get them to change Must win now
Successful Trader: Calm about losses, blames self for mistakes so change behaviour now, can lose now as will win in the future
TRADING MENTAL STATE
Bad Trader: Confused, scared, fear and greed trading state
Successful Trader: Strong peak appropriate trading state
MARKET KNOWLEDGE
Bad Trader: Weak knowledge Weak understanding of how it works
Successful Trader: Strong knowledge Strong understanding of how it works
MODEL OF TRADING
Bad Trader: Not tested model
Successful Trader: Test their model before applying
COMMITMENT TO SUCCESS
Bad Trader: Not committed to being successful
Successful Trader: Committed to being successful
COMMITMENT TO TRADING
Bad Trader: Not committed to trading
Successful Trader: Committed to trading
EXCITEMENT
Bad Trader: Experiences excitement when trades go well
Successful Trader: No excitement from trading, excitement from other areas of life
PERSONAL CONFLICTS
Bad Trader: Many personal internal conflicts with trading
Successful Trader: No personal conflicts with trading. Identities aligned.
DECISIONS
Bad Trader: Bad decisions - long and complicated When they can't decide what to do they follow the crowd
Successful Trader: Good decision - short and quick Calm and decisive
PERSONAL ENERGY
Bad Trader: Tired
Successful Trader: Energised
Bad Trader:
Money is important
It's bad to loose in the markets
It a battle, war, sea or animal and serious
No need to mentally rehearse each trade
I've lost before I start
Most people approach trading to make money and that is the primary reason they lose. Because money is so important, they have trouble taking losses and letting profits run.
Successful Trader:
Money is not important
it's ok to loose in the markets
Trading is just a game
Mentally rehearsing each trade is important 4 success
I've won before I start
In contrast, when you think trading is a game and play by certain rules, then it becomes easier to follow the rule of cut losses and run profits. In addition, because of mental rehearsal and extensive planning, top traders have already gone through all the trail and error in their mind before they begin. As a result, they know they are going to win in the long run, and it makes little set backs easier to deal with.
EMOTIONAL CONTROL
Bad Trader: No emotional control
Successful Trader: Strong emotional control
DISCIPLINE
Bad Trader: Lack of discipline
Successful Trader: Strong discipline
PATIENCE
Bad Trader: Lack of patience
Successful Trader: Extremely patient
RISK ATTITUDE
Bad Trader: Run losses Cut profits
Successful Trader: Cut Losses Run Profits
FAILURE ATTITUDE
Bad Trader: You can fail
Successful Trader: No such thing, just leant something
TRADING EMOTION
Bad Trader: Fear and greed
Successful Trader: Calm / confident/ detached from trading/ still
STRESS ATTITUDE
Bad Trader: Because failure exist they burn energy trading on stress = follows crowd mentality & irrational choices
Successful Trader: No such thing as failure own mind rational choices
LOOSING ATTITUDE
Bad Trader: Loosing attitude, anxious about losses, blames others for mistakes so has to get them to change Must win now
Successful Trader: Calm about losses, blames self for mistakes so change behaviour now, can lose now as will win in the future
TRADING MENTAL STATE
Bad Trader: Confused, scared, fear and greed trading state
Successful Trader: Strong peak appropriate trading state
MARKET KNOWLEDGE
Bad Trader: Weak knowledge Weak understanding of how it works
Successful Trader: Strong knowledge Strong understanding of how it works
MODEL OF TRADING
Bad Trader: Not tested model
Successful Trader: Test their model before applying
COMMITMENT TO SUCCESS
Bad Trader: Not committed to being successful
Successful Trader: Committed to being successful
COMMITMENT TO TRADING
Bad Trader: Not committed to trading
Successful Trader: Committed to trading
EXCITEMENT
Bad Trader: Experiences excitement when trades go well
Successful Trader: No excitement from trading, excitement from other areas of life
PERSONAL CONFLICTS
Bad Trader: Many personal internal conflicts with trading
Successful Trader: No personal conflicts with trading. Identities aligned.
DECISIONS
Bad Trader: Bad decisions - long and complicated When they can't decide what to do they follow the crowd
Successful Trader: Good decision - short and quick Calm and decisive
PERSONAL ENERGY
Bad Trader: Tired
Successful Trader: Energised
Tuesday, April 15, 2008
?????
Have you ever wondered why some traders make money easily, while others consistently make money only to give it back again or can not gain any form or consistency? Is there something that successful traders and investors do that makes them consistently successful? Is the difference found in their trading systems, technical or fundamental approaches, intelligence, skills, timing, luck, or their choice? The answers are to be found in none of these things.
All traders and investors have a blueprint ingrained in their subconscious minds, and it is this blueprint, more than anything, that will determine your trading and investing results. Your financial, trading and investing blueprint is the secret of trading success. 90% of trading success is how you think.
It is well documented, and many studies have shown that regardless of the size of the winnings, 80% of lottery winners lose all their winning and are actual worse off two years later. However, it has also been shown that many self made millionaires who lose all their money will usually regain it back within a few years. Why does this predictable pattern happen?
Two people could grow up in the same neighbourhood, go to the same school, have had the exact same education and yet this is were their similarities end. They could sit side by side at the same trading and investing seminar, learn the same information, but yet one could become wealthy from the information and the other could see their account wiped out. Why is this?
You can know everything about trading and investing, but if your blueprint is not set for trading and investing success, nothing you learn, nothing you know, nothing you do will make any difference in the long run - and if somehow you do make money trading and investing, you will most likely 'donate' it back to the market! You can have the greatest trading methodology, techniques, strategy, system, etc, but if you are not thinking correctly, the by product of a faulty blueprint will be your account will be wiped out. Or, you will give up and think it's impossible to win.
Everything you where told, everything you unconsciously modelled and saw people do, and your emotional experiences all regarding money, trading and investing are pre-determining the results you will experience for the rest of your life. We have all been taught and conditioned when it comes to money, trading and investing and this information is stored in your unconscious mind. Less than 4% of traders and investors have supportive money, trading and investing beliefs. By this, I mean, you will see money go from your account to those who have a blueprint, which enables them to be a successful trader and investor.
You could easily spend a fortune on studying trading and investing, however, if you don't learn to reprogram your thoughts, it will all be for nothing. Unfortunately your current trading and investing blueprint will tend to stay with you for the rest of your life.
By now, you're probably wondering what is your blueprint set for. Is your blueprint set for success or failure? If you want to know what your money, trading and investing blueprint is right now, look at the results you are producing.
What is your account like right now? What is the shape of your equity curve? Are you consistently making or losing money? What is your net worth? Are you experiencing consistent or inconsistent results with your trading and investments? Is making money hard or easy for you? Do you stick with one strategy, a few, or change around all the time? Do you manage or mismanage your money and account? Do you cut your loses and let your profits run, or do you do the opposite? Are you disciplined in your trading? Do you get emotional when trading?
WHERE YOU GAINED YOUR TRADING AND INVESTING BLUEPRINT AND THOUGHTS
As adults, we have all been taught and conditioned when it comes to money, trading and investing. Most of this took place during your childhood and teenage years.
These early influences shaped who you are today. If they were not the right influences, and are left unchanged, they will lead to self defeat and failing to financially succeed in trading and investing.
These influences were processed through 3 of our 5 senses. Things you heard, saw, and felt in relationship to money, trading and investing.
Everything you were told, everything you unconsciously modelled and saw people do, and your emotional experiences all regarding money, trading and investing are pre-determining the results you will experience for the rest of your life.
How The Past Things You Heard Accurately Predict Your Trading And Investing Results For The Rest Of Your Life
All the statements you heard or formed about money, trading and investing remain in your unconscious mind, and they are controlling your results. These statements once accepted by you will go into your unconscious mind, and form a belief, upon which you are automatically acting upon, and no logic will stop you doing otherwise. For example, if you believe money is the root of all evil or rich people are evil, and if you believe you don't want to be evil, then you will unconsciously be guided to get rid of the money you make, or fail at trading and investing. You may have been told to follow your rules, and for example, you may have a rule of getting in when the price is at a 52 week new high. However, if you were told and as a result you now believe that professionals short at 52 week new highs, your belief will stop you from entering the trade. When it comes to choosing between logic and things you heard that created your programming, your behaviour will always be guided by your unconscious mind. Your emotions will win nearly every time. If you were told, or you unconsciously formed the wrong beliefs about trading and investing, you will struggle to be successful. Most people have no idea what their beliefs are. You need a way to change them for good.
How The Past Behaviours You Modelled Accurately Predict Your Trading And Investing Results For The Rest Of Your Life
Whose behaviours did you learn when it comes to money, trading and investing? Unfortunately most people learn trading and investing in seminars or from books from people who make their money from teaching about trading and investing, rather than people that make/made their money in the markets; Successful professional traders and investors. If you leant the behavioural traits from the wrong person, again this will be imprinted on your blueprint. As children we learnt everything from modelling experts. This is exactly how you learnt to walk. You copied people who were doing it successfully, not from people who wrote books about it, or told you about it. You copied what you saw working. If you copied/modelled the wrong behaviours, you will struggle.
How Your Past Emotional Experiences Accurately Predict Your Trading And Investing Results For The Rest Of Your Life
The emotional meaning you associate with money will drive your feelings and behaviour. If you feel or attach nothing but pain or negative feelings with losing money, then taking a loss is hard to do. If you have a built in desire to be right, because it feels wrong not being right, again you will struggle with trading and investing. If you have had nothing but negative emotional experiences with money, trading and investing, again you will struggle with money, trading and investing for the rest of your life, unless you learn how to change this. You need a way to unlearn the wrong emotional meanings that you have unconsciously installed.
Change your programming and you change your results and destiny.
All traders and investors have a blueprint ingrained in their subconscious minds, and it is this blueprint, more than anything, that will determine your trading and investing results. Your financial, trading and investing blueprint is the secret of trading success. 90% of trading success is how you think.
It is well documented, and many studies have shown that regardless of the size of the winnings, 80% of lottery winners lose all their winning and are actual worse off two years later. However, it has also been shown that many self made millionaires who lose all their money will usually regain it back within a few years. Why does this predictable pattern happen?
Two people could grow up in the same neighbourhood, go to the same school, have had the exact same education and yet this is were their similarities end. They could sit side by side at the same trading and investing seminar, learn the same information, but yet one could become wealthy from the information and the other could see their account wiped out. Why is this?
You can know everything about trading and investing, but if your blueprint is not set for trading and investing success, nothing you learn, nothing you know, nothing you do will make any difference in the long run - and if somehow you do make money trading and investing, you will most likely 'donate' it back to the market! You can have the greatest trading methodology, techniques, strategy, system, etc, but if you are not thinking correctly, the by product of a faulty blueprint will be your account will be wiped out. Or, you will give up and think it's impossible to win.
Everything you where told, everything you unconsciously modelled and saw people do, and your emotional experiences all regarding money, trading and investing are pre-determining the results you will experience for the rest of your life. We have all been taught and conditioned when it comes to money, trading and investing and this information is stored in your unconscious mind. Less than 4% of traders and investors have supportive money, trading and investing beliefs. By this, I mean, you will see money go from your account to those who have a blueprint, which enables them to be a successful trader and investor.
You could easily spend a fortune on studying trading and investing, however, if you don't learn to reprogram your thoughts, it will all be for nothing. Unfortunately your current trading and investing blueprint will tend to stay with you for the rest of your life.
By now, you're probably wondering what is your blueprint set for. Is your blueprint set for success or failure? If you want to know what your money, trading and investing blueprint is right now, look at the results you are producing.
What is your account like right now? What is the shape of your equity curve? Are you consistently making or losing money? What is your net worth? Are you experiencing consistent or inconsistent results with your trading and investments? Is making money hard or easy for you? Do you stick with one strategy, a few, or change around all the time? Do you manage or mismanage your money and account? Do you cut your loses and let your profits run, or do you do the opposite? Are you disciplined in your trading? Do you get emotional when trading?
WHERE YOU GAINED YOUR TRADING AND INVESTING BLUEPRINT AND THOUGHTS
As adults, we have all been taught and conditioned when it comes to money, trading and investing. Most of this took place during your childhood and teenage years.
These early influences shaped who you are today. If they were not the right influences, and are left unchanged, they will lead to self defeat and failing to financially succeed in trading and investing.
These influences were processed through 3 of our 5 senses. Things you heard, saw, and felt in relationship to money, trading and investing.
Everything you were told, everything you unconsciously modelled and saw people do, and your emotional experiences all regarding money, trading and investing are pre-determining the results you will experience for the rest of your life.
How The Past Things You Heard Accurately Predict Your Trading And Investing Results For The Rest Of Your Life
All the statements you heard or formed about money, trading and investing remain in your unconscious mind, and they are controlling your results. These statements once accepted by you will go into your unconscious mind, and form a belief, upon which you are automatically acting upon, and no logic will stop you doing otherwise. For example, if you believe money is the root of all evil or rich people are evil, and if you believe you don't want to be evil, then you will unconsciously be guided to get rid of the money you make, or fail at trading and investing. You may have been told to follow your rules, and for example, you may have a rule of getting in when the price is at a 52 week new high. However, if you were told and as a result you now believe that professionals short at 52 week new highs, your belief will stop you from entering the trade. When it comes to choosing between logic and things you heard that created your programming, your behaviour will always be guided by your unconscious mind. Your emotions will win nearly every time. If you were told, or you unconsciously formed the wrong beliefs about trading and investing, you will struggle to be successful. Most people have no idea what their beliefs are. You need a way to change them for good.
How The Past Behaviours You Modelled Accurately Predict Your Trading And Investing Results For The Rest Of Your Life
Whose behaviours did you learn when it comes to money, trading and investing? Unfortunately most people learn trading and investing in seminars or from books from people who make their money from teaching about trading and investing, rather than people that make/made their money in the markets; Successful professional traders and investors. If you leant the behavioural traits from the wrong person, again this will be imprinted on your blueprint. As children we learnt everything from modelling experts. This is exactly how you learnt to walk. You copied people who were doing it successfully, not from people who wrote books about it, or told you about it. You copied what you saw working. If you copied/modelled the wrong behaviours, you will struggle.
How Your Past Emotional Experiences Accurately Predict Your Trading And Investing Results For The Rest Of Your Life
The emotional meaning you associate with money will drive your feelings and behaviour. If you feel or attach nothing but pain or negative feelings with losing money, then taking a loss is hard to do. If you have a built in desire to be right, because it feels wrong not being right, again you will struggle with trading and investing. If you have had nothing but negative emotional experiences with money, trading and investing, again you will struggle with money, trading and investing for the rest of your life, unless you learn how to change this. You need a way to unlearn the wrong emotional meanings that you have unconsciously installed.
Change your programming and you change your results and destiny.
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