Trading In The zone - Taking Respnsibility Flashcards
To be a successful trader you must create a new version of yourself who is disciplined, takes full responsibility for things, and acts free from fear in a methodical focused way.
How to get here….?
Program insane success and a number and characteristics
What two tools are essential ?
Begins with W and D
A willingness and desire to Learn
Your mental environment must be sculptured for trading
The best traders have a mental structure that allows them to act free from fear and recklessness
Eliminating fear it one half, what is the other?
Developing restraint
Need mental structures to counteract negative effects or euphoria and overconfidence for a string of winning trades
Why is winning dangerous?
If you haven’t learned to monitor and control yourself it will bite you bad
The consistent you see is where? (Begins with M)
It’s in your mind, not on market analysis
The Zone is ?
It’s flow, free from fear, like when running in rugby without fear, just reacting and analysing effortlessly
You don’t have to get deep flow, just create conditions to creat PWA - positive winning attitude
Accepted results whatever they are
Traders when they first start often have this care free attitude, they get reckless and lose it after some losses
A PWA carefree attitude should be based on
Some Winning trades
Or
A positive winning attitude you deeply hold
It’s the positive winning attitude
Are expectations good or bad?
Very dangerous
When not fulfilled they hurt
Trading isn’t about predicting what the the market WILL DO
It’s just setting up for what it may or may not do with the trade having TOTALLY accepted the responsibilities ahead of time
Only the very best trader accept what???
TOTAL RESPONSIBILITY FOR OUTCOME OF A TRADE IS ACCEPTED BEFORE ITS EVEN PLACED
What is taking complete responsibility
It’s understand all results are totally self generated
2 Consequences if you don’t take complete responsibility?
- You’ll have an adversarial relationship with the market that knocks you out of flow
- You’ll mislead self into thinking market analysis can solve your challenges
Fighting the market never works, why are you fighting?
- You’re really fighting the negative consequences of not accepting the market owes you nothing
How to take advantage of the unlimited opportunities the market presents?
Get into flow - see the patterns and trends
What’s a key blocker of success? And a symptom?
Not accepting fully responsibility for what happened
This causes some to fall into the “just do more market analysis trap”
For a startup it’s JUST BE BUSY as opposed to getting in the zone and focusing on the next action and using cortana AGI for educo effortless decisions
Determination can be misused if guided towards in depth market analysis. To be clear, learning about the market is fine, learning about the market as a reflex to a loss is doing it for the wrong reason and will subtly send a trader in totally the wrong direction
What feeling do we get when we lose?
Revenge trading, terrible mindset, the opposite of accepting the outcomes
There’s expecting, requirement of a win and prediction imbued in revenge trades
As soon as a trader thinks he knows something about the market that can prevent him from feeling pain what has happened….?
The trader has sealed his fate to become a loser
Is learning to avoid pain in the market good?
No, it’s the subtle but certain way a trader becomes a loser. If a trade learns Elliot Wave, Fib, support and resistance, pattern recognition, RSI and all the rest to avoid pain, he’s lost before he starts.
This loss given the work will be all the more frustrating. He learned and the more he learned the less it helped
Why?
When he trades, he does so with fear, with hesitation, second guesses, doesn’t put on trades with clear signals
He is ignoring the attitude problem that MUST be solved
If a trader is trying to prove something can that help?
NO - traders trying to prove something, if you HAVE to win you are inviting pain and fear into your decisions due to expectations
Our minds try to shield us from pain how?
2 ways
Rationalise
Justify
Can keep you in a losing trade for ages
1 - What will a fearful traders subconscious do?
2 - What will a fear fee trader’s subconscious do?
Fearful
1 - his subconscious will exclude or alter useful information given by market due to fear of pain
Example - staring at candles, and very few green ones give them hope as opposed to accepting the trade has gone against them
Fear free
2 - his subconscious will collate info and offer up ideas and solutions effortlessly and stress free
What do markets generate consistently, But not always
Patterns - these work well but aren’t always correct
Preventing pain by trying to avoid loss is the Achilles heel of a trader who hasn’t accepted the market fearlessly
Was is trying to avoid pain pointless
A trader focusing on not making a mistake and thus makes more is like the tennis player or golfer who focuses on mistakes and also makes more
Risky scenario? And holes a trader can get sucked into?
Positive feelings can come from spotting a pattern in data, and falling into the “I have a way to not avoid pain trap” gets many a trader
Learning more and more about the markets only to avoid pain will compound issues
The more deliberate the learning to avoid loss the more expectation there is from markets which poisons the IN ZONE attitude essential for consistent wins. This cycle or learning and failing then learning even more to correct this ends in the trader quitting, or then recognising it’s their perspective that’s the challenge, not their knowledge
Euphoria from winning…what mistakes are common
In some creates supreme confidence (nothing will go wrong)
- over trading
- too big a position
- violating rules
Traders, 3 groups
A bit less than 10% are consistent winners
30-40% are consistent losers
40-50% tare book and bust traders, big wins and big losses
- these boom and bust traders always wreck themselves after a long winning streak
Euphoria is the enemy
Everyone has a different threshold when confidence and euphoria takes over
The moment it takes hold the trader is in deep shit
- break rules
- ignore risk
- overtrade, too big a bet
Deflecting euphoria is essential for consistent wins
Blaming the market for failure is the same as putting an infected bandage on a wound
It kind of helps as it protects your confidence and flow but this approach will bite you later
We are responsible for developing our own winning attitude
Winnings trades are not going to give this, that’s fake wining attitude
The market won’t do it for you
NO AMOUNT OF MARKET ANALYSIS WILL COMPENSATE FOR A WINNING ATTITUDE
LOTS OF analysis poor attitude = losses
No analysis great attitude - wins
Think Camilla with exams at Newcastle, she did no work and just aced them - not like some work, she did NO work
An example of accepting responsibility that causes a counter intuitive point
Pros and others are separated by full acceptance of the risks
If you have accepted risks things like “courage” and “nerves of steel” are irrelevant
There’s nothing to fear, the market is irrelevant
Very few go into trading with the correct approach to responsibility and risk
Most ppl - start our care free, then get scared, and fear grows from there reducing potential
Pros don’t avoid risk but embrace is
How this mental shift occurs is hard to pin point which is why too traders find it hard to put into word the reasons for their success (like when I asked how to prepare for Main Board)
