In the zone - working with your beliefs Flashcards
Contradiction, patterns imply consistency, but each market movement is in the end unique - similarities are only surface level
be expectation free
you simply look open-mindedly at what info and opportunities the market is present and place trades with risk accepted
where does consistency come from?
consistency is a result of a carefree, objective state of mind where we make our minds available to perceive and act upon what the market is offering IN THE NOW MOMENT (NOW = past trades have no fear or euphoric impact on how you perceive market for the next trade)
Making mind available = nothing to prove, aren’t trying to win or avoid losses, or get money back or get revenge, just taking advantage of the opportunities the market gives up
Carefree = confident (not euphoric)
- carefree is free from fear, hesitation, compulsion, NOTHING IN MARKET IS THREATENING
To be at peace with with outcomes you must have accepted the risk
Making mind available =
nothing to prove, aren’t trying to win or avoid losses, or get money back or get revenge, just taking advantage of the opportunities the market gives up
Carefree =
confident (not euphoric)
- carefree is free from fear, hesitation, compulsion, NOTHING IN MARKET IS THREATENING
To be at peace with with outcomes you must
you must have accepted the risk and accepted 5 fundamental truths
1 - anything can happen - just one trader can tip the balance of a price
2 - don’t need to know what will happen next to make money - market is only threatening if we expect things to happen - causes emotional pain
3 - Wins / Losses are randomly distributed - every loss doesn’t put you closer to win, and same vice versa, mind will fall into trap of looking for confirmation of edge then go in heavy as next will be an edge, or overdo analysis to protect against upcoming losses, these all mess up minds ability to see clearly information market is presenting us
4 - Edge is nothing more than indicator high probability of one thing over another - this is NOT gathering evidence trade will works using parameters you use (not random parameters you don’t usually use, adding random variables makes it impossible to know what works and what doesn’t), you are just gathering evidence edge it there and then putting on the trade.
5 - Every moment in market is unique - don’t fall into association trap, our minds are wirred to spot patterns, this moment is the same as before etc., reality is, each moment in the market is unique, they can be similar, but they are unique, none are similar, accepting this removes expectation and opens mind
4 - Edge is nothing more than indicator high probability of one thing over another - this is NOT gathering evidence trade will works using parameters you use
why avoid random / new parameters when confirming an edge is there?
taking into account random parameters you don’t usually use, adding random variables makes it impossible to know what works and what doesn’t
what is association trap?
5 - Every moment in market is unique - don’t fall into association trap, our minds are wirred to spot patterns, this moment is the same as before etc., reality is, each moment in the market is unique, they can be similar, but they are unique, none are similar, accepting this removes expectation and opens mind
what does acceptance of risk stop market information being associated with?
Stops market information being assocaited with pain?
This opens minds to see opportunities that would otherwise be obscured due to fear or pain, or mental contradictions
perception growth example - candle charts used to look scary, now they don’t because i can read them
another perception growth - accepted risks fully, now market charts show me opportunities as i have clear mind, fear free, carefree
being at peace with not knowing what will happen next allows for interaction with market with objection perspective
this is best state of mind to spontaneously enter the zone, focusing on UNIQUE market opportunities, the NOW of the market (no one moment is the same)
