Trading In The Zone Flashcards
Lack of consistency come from ______
Attitude
The winners have attained a mindset that allows them to remain __________, __________, and above all else ____________, in the face of adverse conditions
Disciplined, focused, confident
Most have not accepted what about a trade
That is has a non guaranteed probable outcome
4 Primary Trading fears
- Being wrong
- Losing Money
- Missing out
- Leaving money on the table
Confidence comes from?
Trust in yourself
How to become unafraid?
Truly accept the risks
____ not the _______ is responsible for my success or failure as a player
Me, market
The degree to which our mind is focused on _______ _______________ is the degree by which we create the very experience we are trying to avoid
Pain Avoidance
The more one has to ____ (or ___ ____), the less tolerance one will have toward info that might indicate we are not getting what we want.
Win, not lose
If you aren’t _________ _____________ for your results then you might believe you have nothing to learn
Completely responsible
I can’t _______ or ___ to _____ ______ from the market. Rather I will let the market unfold and take advantage of opportunities I see
Expect, try to get stuff
Do the best traders use courage to get through the fear?
No, they don’t have fear because they have accepted emotionally all the risks and just act on +EV opportunities
It is your job to perceive ____________, not threats
Opportunities
If you have a few losing hands in a row, your mind will perceive the next opportunity as ______ ______
Overly risky
After winning a few hands in a row the next opportunity will be perceived as _____ _____
Not as risky as it is
The best players believe, without a shred of a doubt, that _______ __ _________. This
Will prevent the mind from associating the now moment with the outcomes of the most recent past
Anything is possible.
The markets most fundamental concept
It can express itself in an almost infinite number of ways
Believing or assuming that ___ _____ will be the cause of virtually every error
You know
Most effective and functional trading beleif
Anything can happen
Every moment is ______ and ___
Unique and new
Unless we train our mind to perceive the ___________ of each moment, that ___________ will automatically be filtered out of our perception
Uniqueness
Taking every ____ increases sample size and gives opportunity for the ____ to play out in their favor
Edge, edge
Unsuccessful traders are obsessed with _______ __________ because they crave the sense of certainty it appears to give them
Market analysis
The typical trader desperately seeks __________ where it doesn’t exist. Ironically if he accepted the fact that _______ does not exist then he would create the __________ he craves: _______ that __________ does not exist
Certainty, certainty, certainty, certain that certainty
The wrong attitude before an investment vs the right attitude
Wrong: you convince yourself that your trade will work and you are essentially saying, you know everything about the market people how they react, which is absurd
Right: we accept in advance of the event that we don’t know how it will turn out and this acceptance keep our expectations neutral, and open ended
Any expectation about the markets behavior that is _______, ________, ______, instead of _______/__________ is unrealistic and potentially damaging
Specific, well defined, rigid….neutral/open ended
What has the potential to create the most unhappiness and emotional misery
An unfulfilled expectation
If there is a difference between what we want or expect and what the market is offering then what happens
Our pain avoidance mechanisms kicked in, and to protect ourselves we rationalize justify make excuses and willfully, gather information that will neutralize the significance of the conflicting information
We need to be rigid in our ______ and flexible in our ___________
Rules, expectations
What is the problem with our pain avoidance kicking in when the results differ from our expectations?
The pain avoidance can block, distort, or diminish info
The more rigid, the expectation, the more we have to….
Bend, violate, or break our rules to accommodate our unwillingness to give up what we want in favor of what the Market is offering us
5 Fundamental Truths of a Probabilistic Mindset
- Anything can happen.
- I don’t need to know what is going to happen next to make money.
- There is a random distribution between wins and losses for any set of variable that define any edge.
- And edge is nothing more than an indication of a higher probability of one thing happening over another.
- Every moment in the market is unique.
If you believe you know something then what happens
The moment is no longer unique and therefore known and you can’t perceive what the market is offering leading to errors
You can project and predict an edge while at the same time…
Not expect the market to do anything in any moment
What do we distort info based on?
Our expectations
What are expectations?
Beliefs projected into some future moment
What is the only agenda you should be coming to the game with
To let the market unfold in any way
It chooses and to be in the best state of mind to recognize the opportunities
What is the universal response when the outside world expresses itself in a way that doesn’t reflect what we expect or believe to be true
Emotional pain
Market info is only threatening if
You are expecting the market to do something for you
If you don’t expect the market to make you a winner you have
No fear of losing
The only evidence you need to make an investment
Whether the variables you use to define edge or present at any given moment
Beliefs take on a life of their own and therefore
Resist any force that would alter their present form
Best way to deal with beliefs
Gently draw down the energy of them so that it doesn’t have the potential to act as a force on our perception and behavior
What is a creative experience?
When you encounter something that goes against previously held beliefs
When you truly believe you don’t need to know, you are thinking in _________ and it won’t
Probabilities, block, distort, or discount or deny anything the market is offering to us about its potential to move in any particular direction
Anything we feel guilty about can have an
Adverse effect on self-worth
Subconscious self sabotaging beliefs can manifest in the form of
Lapses and focus attention, or allowing yourself to give into distracting thoughts
The more you think you know the
Less successful, you will be
What belief can act as a primary source of energy
The belief that I am a successful player
What can cause momentary lapses and focus and concentration resulting in error?
Distracting thoughts
What is self-discipline?
The mental technique to redirect our focus of attention to the object of our goal or desire
What to do when a conflicting thought or thought that we don’t desire comes up
Redirect the energy to the objective belief and draw energy away from the other beliefs
