Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Trading Mindset > Trading Zone > Flashcards

Trading Zone Flashcards

1
Q

Flashcard 1: Principles of Consistency
Front: What are the seven principles of consistency?

A

Back:

I objectively identify my edges.
I predefine the risk of every trade.
I completely accept risk or I am willing to let go of the trade.
I act on my edges without reservation or hesitation.
I pay myself as the market makes money available to me.
I continually monitor my susceptibility for making errors.
I never violate these principles.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Flashcard 2: Objective Identification
Front: What is the first principle of consistency?

A

Back: “I objectively identify my edges.”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Front: What is the second principle of consistency?

A

I predefine the risk of every trade.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Front: What is the third principle of consistency?

A

I completely accept risk or I am willing to let go of the trade.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Front: What is the 4th principle of consistency?

A

I act on my edges without reservation or hesitation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Front: What is the 5th principle of consistency?

A

I pay myself as the market makes money available to me.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Front: What is the 6th principle of consistency?

A

I continually monitor my susceptibility for making errors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Front: What is the 7th principle of consistency?

A

I never violate these principles.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Flashcard 3: Being Objective
Front: What does being objective mean in the context of trading?

A

Back: Being objective means there’s no potential to perceive any market information from a painful or euphoric perspective.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Flashcard 4: Objective Mindset
Front: How can one become an objective observer in trading?

A

Back: One needs to think from the market’s perspective and understand that every moment in the market is unique.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Flashcard 5: Illusion in Trading
Front: What is referred to as an “illusion” in the context of trading?

A

Back: When traders are not objective or connected to the “now moment opportunity flow,” leading to trading errors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Flashcard 6: Typical Trading Errors
Front: What are the common trading errors one might commit?

A

Back: Hesitating, not defining risk, refusing to take a loss, prematurely exiting a winning trade, and letting a winning trade turn into a loser, among others.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Flashcard 7: Five Fundamental Truths
Front: What effect do the five fundamental truths about the market have on traders?

A

Back: They keep trader expectations neutral, focus on the present moment, and help eliminate trading errors, leading to increased trust and confidence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are the five fundamental truths?

A
  1. Anything can happen.
  2. You don’t need to know what is going to happen next in order to make money.
  3. There is a random distribution between wins and losses for any given set of variables that define an
    edge.
  4. An edge is nothing more than an indication of a higher probability of one thing happening over
    another.
  5. Every moment in the market is unique.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Flashcard 8: Market Perspective
Front: What’s the first objective in relation to the market’s perspective?

A

Back: Integrate as a dominant belief, “I objectively identify my edges.”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Flashcard 9: Transformation
Front: How can a trader achieve a transformation to think from the market’s perspective?

A

Back: The transformation starts with a strong desire and self-discipline. A trader should have a clear objective and focus on consistency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Flashcard 10: Conflicting Forces
Front: What might conflict with a trader’s goal for consistency?

A

Back: Desires to impress others, be right about predictions, experience euphoria, or fulfill an addiction to random rewards, among others.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Flashcard 11: Desire
Front: Why is desire crucial in this trading process?

A

Back: A clear, intense desire for consistency is an absolute prerequisite for the process to work. It’s necessary to overcome other conflicting motivations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Flashcard 12: Desire’s Force
Front: Why is desire highlighted as a force in the passage?

A

Back: Desire can be used to create a new dimension to one’s identity, shift energy between conflicting concepts, or change memories from negative to positive.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Flashcard 13: Making up your Mind
Front: What does “making up your mind” imply?

A

Back: Deciding what you desire with such clarity and conviction that no internal or external barriers stand in your way.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Flashcard 14: Time vs. Focused Desire
Front: How is deactivating internal conflicts related to time and desire?

A

Back: De-activating conflicts isn’t a function of time but of focused desire. However, clarity and conviction might take time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Flashcard 15: Self-Discipline Role
Front: How is self-discipline important in achieving consistency in trading?

A

Back: In the absence of extreme clarity and conviction, the technique of self-discipline over time can help integrate consistent trading beliefs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Flashcard 16: Obstacles to Consistency
Front: What might serve as obstacles to achieving consistency in trading?

A

Back: Other motivations such as trading for euphoria, impressing others, fulfilling an addiction to random rewards, or being right about predictions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Flashcard 17: Desire for Consistency
Front: Why is wanting consistency important?

A

Back: One has to want consistency enough to give up all other trading motivations that aren’t aligned with achieving consistent success.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Flashcard 19: Achieving Transformation
Front: What are the prerequisites for transforming one’s trading mindset?

A

Back: A clear and intense desire for consistency, along with the willingness to refocus on that desire using self-discipline.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Flashcard 20: Trading Desire’s Power
Front: How powerful is a clear desire aimed at a specific objective in trading?

A

Back: Such a desire can instantly shift one’s mental structure, deactivate internal conflicts, and change the context of memories.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Flashcard 23: Desire vs. Existing Beliefs
Front: Can one’s clear desire coincide with their current beliefs about trading?

A

Back: No, desire does not need to coincide or agree with current beliefs. It can create new beliefs and override the existing ones.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Flashcard 24: Role of Clarity in Desire
Front: Why is clarity in one’s desire emphasized in the passage?

A

Back: Absolute clarity ensures that there are no lingering doubts, and the force of resolve can overcome any internal or external barriers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Flashcard 25: Meaning of “Make up your Mind”
Front: What is the deeper meaning of “make up your mind” in the context of the passage?

A

Back: It refers to achieving such clarity and conviction in desire that nothing can hinder or distract from the set goal.

30
Q

Flashcard 27: The Force of Conflicting Motivations
Front: Why might conflicting motivations prevent one from achieving consistency in trading?

A

Back: These motivations, such as seeking euphoria or wanting to impress others, might be so strong that they prevent one from even beginning exercises aimed at consistency.

31
Q

Front: What role does self-discipline play in overcoming challenges?

A

Back: In the absence of unwavering clarity and conviction, self-discipline can gradually align one’s actions with their desire for consistency over time.

32
Q

Flashcard 29: Beginning the Transformation Process
Front: What is the starting point of the transformation process in the context of trading?

A

Back: The trader must possess a powerful desire for consistency, so much so that they’re willing to forsake all other conflicting motivations.

33
Q

Flashcard 30: Active Contradictions vs. Desire
Front: Can active contradictions remain unchanged throughout one’s life?

A

Back: Yes, unless there’s a clear desire to change, the imbalance between conflicting beliefs can remain throughout one’s life.

34
Q

The first principle of consistency is the belief, “I objectively identify my edges.” The key word here is
objectively

A

Being objective means there’s no potential to define, interpret, and therefore perceive any
market information from either a painful or euphoric perspective.

35
Q

The way to be objective is to operate out of

A

beliefs that keep your expectations neutral and to always
take the unknown forces into consideration.

36
Q

Remember, you have to specifically train your mind to be
objective and to

A

stay focused in the “now moment opportunity flow.”

37
Q

Our minds are not naturally wired
to think this way, so to be an objective observer you have to learn to

A

think from the market’s
perspective.

38
Q

From the market’s perspective, there are always unknown

A

forces (traders) waiting to act on
price movement

39
Q

from the market’s perspective, “every moment is truly unique,”

A

even
though the moment may look, sound, or feel exactly the same as some moment logged away in your
memory bank.

40
Q

The instant you either decide or assume you know what’s going to happen next

A

you will automatically
expect to be right

41
Q

what you know, at least at the rational level of thinking, can only take into
consideration your unique past, which

A

may not have any relationship to what is actually happening
from the markets perspective.

42
Q

any market information that is not consistent with your
expectation has the potential to be

A

defined and interpreted as painful.

43
Q

To avoid experiencing the pain, your mind will

A

automatically compensate, with both conscious and subconscious pain-avoidance
mechanisms, for any differences between what you expect and what the market is offering

44
Q

h both conscious and subconscious pain-avoidance
mechanisms,

A

will experience is commonly referred to as an “illusion.”

45
Q

In a state of illusion, you are

A

neither objective
nor connected to the “now moment opportunity flow.”

46
Q

” In a state of illusion, Instead, you become

A

susceptible to committing all the typical trading errors (hesitating, jumping the
gun, not predefining your risk, defining your risk but refusing to take the loss and letting the trade turn
into a bigger loser, getting out of a winning trade too soon, not taking any profits out of a winning
trade, letting a winning trade turn into a loser, moving a stop closer to your entry point, getting stopped
out and watching the market trade back in your favor, or trading too large a position in relationship to
your equity).

47
Q

The five fundamental truths about the market will keep your expectations neutral, focus
your mind in the

A

“now moment opportunity flow”

48
Q

. The five fundamental truths about the market will keep your expectations neutral, focus
your mind in the “now moment opportunity flow” BY

A

disassociating die present moment from your
past), and, therefore, eliminate your potential to commit these errors.

49
Q

When you stop making trading
errors,

A

you’ll begin trusting yourself.

50
Q

As your sense of self-trust increases, so will your sense of

A

selfconfidence.

51
Q

The greater your confidence,

A

the easier it will be to execute your trades (act on your
edges without reservation or hesitation)

52
Q

The five truths will also create a state of mind in which

A

you will genuinely accept the risks of trading.

53
Q

When you genuinely accept the risks, you will

A

be at peace with any outcome.

54
Q

When you’re at peace
with any outcome,

A

you will experience a carefree, objective state of mind, where you make yourself
available to perceive and act upon whatever the market is offering you (from its perspective) at any
given “now moment.”

55
Q

The first objective is to integrate as a dominant belief,

A

“I objectively identify my
edges.”

56
Q

The challenge now is, how do you get there? How do you transform yourself into a person who
can consistently think in the market’s perspective?

A

The process of transformation starts with your desire
and your willingness to refocus on the object of your desire (self-discipline).

57
Q

Desire is a force. It does
not

A

have to coincide or agree with anything that you currently believe to be true about the nature of
trading.

58
Q

A clear desire aimed squarely at a specific objective is

A

a very powerful tool.

59
Q

You can use the force of
your desire to

A

create an entirely new version or dimension to your identity; shift energy between two or
more conflicting concepts; or change the context or polarity of your memories from negative to
positive.

60
Q

You can use the force of
your desire to

A

create an entirely new version or dimension to your identity

61
Q

You can use the force of
your desire to

A

hift energy between two or
more conflicting concepts;

62
Q

You can use the force of
your desire to

A

change the context or polarity of your memories from negative to
positive.

63
Q

“Make up your mind.” The implication of “making
up our minds” is that we decide

A

e exactly what we desire with so much clarity (absolutely no lingering
doubts) and with so much conviction that literally nothing stands in our way, either internally or
externally

64
Q

If there’s enough force behind our resolve, it’s possible to

A

experience a major shift in our
mental structure virtually instantaneously.

65
Q

De-activating internal conflicts is not a function of time; it’s a

A

function-focused desire (although it can
take a considerable amount of time to get to the point where we really make up our minds)

66
Q

Otherwise,
in the absence of extreme clarity and conviction, the technique of self-discipline, over time, will

A

do the
job quite nicely (if, of course, you’re willing to use it).

67
Q

De-activating internal conflicts is not a function of time; it’s a function-focused desire, To get there, you must

A

“make up your mind,” with as much conviction and clarity as possible, that more than anything else you desire consistency
(the state of mind of trust, confidence, and objectivity) from your trading.

68
Q

you must “make up your mind,” with as much conviction and clarity as possible, that more than anything else you desire consistency
(the state of mind of trust, confidence, and objectivity) from your trading. This is necessary because if
you’re like most traders, you’re going to be up against some very formidable conflicting forces. For
example,

A

if you’ve been trading to get high from the euphoria of catching a big move, to impress your
family and friends, to be a hero, to fulfill an addiction to random rewards, to be right about your
predictions, or for any other reason that has nothing to do with being consistent,

69
Q

you must “make up your mind,”, because you’ll find the
force of these other motivations will not only act as an obstacle making the trading exercise I’m about
to give you veiy difficult, but

A

it could very well be strong enough even to keep you from doing the
exercise at all

70
Q

To even start this process, you have to want consistency so much that you would be willing to give up
all the other

A

reasons, motivations, or agendas you have for trading that aren’t consistent with the
process of integrating the beliefs that create consistency.

71
Q

A clear, intense desire is an absolute

A

prerequisite if you’re going to make this process work for you

72
Q
A

Trading Mindset (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions