“Trading is the hardest and easiest profit to ever make.” Wallstreet subscriber
When one begins to develop awareness of their own inefficiencies (usually through great losses) and realizes
Since there is more work involved in trading than he had originally imagined, he usually begins to work on some sort of Holy Grail trading system.
This stage can last for years, but sooner or later there comes a point where one realizes (if they haven’t given up yet) that there is no such thing as a permanent and infallible trading system.
The real key to success is a deep understanding of market structure and how its psychology relates to this whole process. When this shift in perception – or paradigm – occurs, it creates a flood of conflicting emotions for the trader.
He knows that there is a possibility to enrich himself beyond his wildest dreams; The markets provide us with this opportunity at every moment.
A trader can clearly see his success before his eyes; However, something inside of him seemed to be disrupting his ability to seize it.
The market is a challenge for many traders, the challenge or battle also takes place on the inside where thoughts and beliefs combine with the unacknowledged and unmanaged feelings that drive behaviour. This results in traders not being able to act in their best interest.
As ‘incompetent’, they realize that they are not as ‘expert’ as they thought when they first started. Moving into this state of unconscious incompetence can be daunting, especially if it comes so abruptly through huge and heavy losses. Such a sudden realization – for example when you meet people who are clearly more competent than you, or when someone holds a metaphorical mirror of your true ability – can be distressing.
This is a very difficult stage where most judgments and doubts against oneself are formed. This is where most people give up.
They assume that trading simply requires a special talent they were not born with unfortunately. However, this is the stage where it is real
Learning and change begin for those who persevere.
There is nothing esoteric or even delusional about trading success. Of course, it is those who have the staying power who test it, but there is nothing unusual about this.
It can be achieved by anyone. As far as I know, no one is born with any special trading talent or uncanny ability to predict the markets. There may be a predisposition to better self-control and better adaptability, but that’s it. This is something we others cannot improve.
When we think about it, good trading is a function of three things:
— How much do you participate in the markets?
— How adaptable are you?
— How much self-control do you display
These three points work together and are all sine qua non. You must be able to participate in (and survive) the markets so that you can acquire the right knowledge and skills to help you navigate them. Also, you must be highly adaptable. This means that you have to accept the changes in the markets, learn from the mistakes that you will undoubtedly make, and accept the failures that you will certainly encounter. You have to control your impulses so as not to enter into low-probability trades; the farm bet on any one trade; Or let the little losers turn into something so huge that they put your entire account at risk.
The degree to which you fail to develop or work on these three points is the degree to which he will reach
Your progression into stagnation.
I know there are some complicated books that have been written on the topic of trading psychology – sometimes in multiple sizes – but it doesn’t have to be that complicated. It is not rocket science that is required here. You don’t even have to delve into your past and decipher every belief you’ve acquired since your childhood that has caused you to shoot yourself every time you trade.
You can, but you don’t have to. All that is required is a clear understanding of what you need to change, how you need to move forward to facilitate those changes, and then come up with the right plan in order to help you get there.
Then, you must diligently implement the plan so that consistency of trading becomes a complex part of your identity. This is the hardest part and only very few can do it.
It is not easy to confront our demons and put an end to some deeply entrenched behaviors. However, I wrote this article with the assumption that you desire business success strong enough that you are willing to “erase” all the conflicting beliefs that stand between you and your goal.
When you break it down to the most basic level, and change your trading results, your behavior, your life is the only logical consequence of desire.
If you really want something, you will find ways to make and facilitate the change, whatever that may be. One thing I would like to point out is that craving is not to be confused with cravings.
I strongly believe that there is a clear distinction between the two. Desire is an expression of longing. Pursuing what we desire gives meaning to our lives.
Passion is an expression of need. When we are on autopilot and therefore unaware, we tend to crave things. When we stay centered in our awareness and consciousness, we can desire things and align our actions with our intentions so that both are in harmony.
Awareness allows us to determine what is really important to us. Desire leads us forward. On the other hand, passion is the attachment to desire and it is the poison that will devour you. This will make you associate your happiness with the thing you want, so that you will melt in complaint if you don’t get what you want. Moreover, it will hinder your ability to make rational decisions. For example, in trading, this will result in you making decisions based on your beliefs about wrongdoing, money, your self-esteem, and a myriad of other beliefs.
Adapting to the constant changes that are fundamental to the markets means that we change ourselves because we make ourselves available to learn more about them. Therefore, to eliminate cravings, you have to get rid of ignorance.
If you want consistent results, this should be an obvious step to take. Keep the flame of curiosity and wonder alive.