I want to talk to you today about a topic that I feel is the most important aspect of trading.
It's called "The Psychological Gap."
It's what separates the men from the boys... and the winning traders from the losers.
Warning: Avoid the mistake of thinking this isn't important.
There's a big difference between fantasizing about trading and actually executing trades.
One person makes money while the other falls prey to limiting beliefs and fails to see a dime.
Having the right trading mindset is the key.
You might not know this because you're still committed to learning...
But just imagine for a moment... if you were to become motivated... you recognize you can develop a winning mindset...
And you feel excited because it's easy when you know what to do.
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OK, I hope you're getting pumped!
With that said, this is what winning traders do...
(1) Create a set of trading rules
Let's face it... rules are something most people resist.
In fact, virtually every trader I've ever known has resisted this process more than any other.
Most of us are attracted to the idea of trading for one main reason... Freedom. Would you agree?
Ironically, it is the attraction to the freedom you know successful trading can bring that can be a hindrance to creating a set of rules that guide your trading.
It's a paradox! Here's what I mean...
The process of creating structure in your life (typically the result of others limiting what you can or cannot do) inhibits your natural desire to freely move, express and experience new things.
In essence, you have been trying to break free from rules all of your life.
Understandably, when you get into trading because of the freedom of expression, time, and money it can provide... and you are told that winning traders create rules...
Well, the instinct is to resist.
When you begin to set up rules to guide you in the process of trading, and as you find yourself growing ever more confident in your self-discipline...
How surprised would you be to master the mindset aspect of trading?
Welcome to the winner's circle. You can do it!
(2) Focus On Being A Successful Trader
Now that you're enjoying the process of creating rules to guide your trading, it's not quite time to start flinging the cash at this or that trade.
You see, the majority of traders miss another critical step in fine-tuning their psychology.
I call it the ‘Process of Being’ and it has to do with visualizing success before you take your first trade.
Check it out:
Before a pro basketball player shoots his next free throw...
Before a brain surgeon steps into the operating room to perform a life saving procedure...
And before a professional speaker gets up to speak to thousands of people...
They all do one thing.
They rehearse in their mind's eye what they are about to do.
They are the best at what they do because of this mental rehearsal.
They put themselves into the position of being the best long before they ever do anything.
Don't let the simplicity of this step fool you.
Before you place your next trade, imagine you're sitting in front of your computer screen.
Contemplate the following...
► What exactly are you doing?
► What kind of trades are you making?
► What kind of position size are you taking?
► How are you responding to winning trades? To your losing trades?
► Are you calm, cool and collected? Do you have a smile on your face?
► Do you see the trade setup? How do you execute the trade once you see the setup?
► When the trade starts to dip against you what do you do?
► When the trade starts to go in your favor what do you do?
Be as thorough in your visualization as you possibly can.
To be the best trader you can be, focus on being successful before you start to trade.
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- Calculates position sizing and stop loss/take profit points automatically.
- Built in Nitro-mode for super fast trade execution so all your orders get filled.
- Anti-Spike technology ensures you don’t get whipsawed oil of a potential profits.
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(3) Take Full Responsibility
The next step to become a winning trader is to unwaveringly take full responsibility for the outcome of your trading. This is a critical component to your success.
By now you’ve created the rules that guide your trading. You’ve pictured yourself being a successful trader.
Now it’s time to actually trade.
This is where the rubber meets the road... and no matter what the outcome of your trading decisions you must take full responsibility.
Here's the thing. If you don’t follow steps one and two then it's quite possible you believe that trading is a random set of events.
We'll talk about uncovering limiting beliefs in just a moment.
If the markets were random, however, then it would be near impossible to create consistency in your results. What's more, it’s easy to shirk responsibility when an event is believed to be random.
IMPORTANT: If you truly believe the markets are random, stop trading right now.
Seriously. This can't be stressed this enough.
Instead, create rules or follow the rules of the system you're trading with (step 1)
Rehearse those rules in your mind's eye (step 2)
And let go of the idea that the markets are random (step 3).
Congratulations. You have just had a breakthrough.
Before you crack open a Budweiser and celebrate... let's make sure there's nothing lurking in your subconscious that could thwart your efforts to become a successful trader.
Uncovering and overcoming limiting beliefs is another step in the process of developing the winning trader's mindset.
First off, write this next statement down and commit it to memory.
"You don’t trade the markets, you trade your beliefs about the markets."
Consider the following example to help you understand this concept...
Let's say that your first experience as a young child with a dog was a bad experience. The dog barked and growled at you, and you got scared.
Because of this experience, you would likely have developed an immediate belief that all dogs are bad.
The truth is that only a very small percentage of dogs are bad.
But... because you're not able to use reasoning to determine whether a dog is bad or not, your child mind filters every new encounter with a dog through the original belief.
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- Calculates position sizing and stop loss/take profit points automatically.
- Built in Nitro-mode for super fast trade execution so all your orders get filled.
- Anti-Spike technology ensures you don’t get whipsawed oil of a potential profits.
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As a child, you are now under the spell of a negatively charged belief that has taken over your perception of the world.
The way to remove the hold this belief has on your mind is to shirt its energy away. For example, if you were to have other encounters with dogs that were not bad, the belief would lose its power over you.
New information (encounters with other dogs) will now be filtered through this positive energy rather than the negative energy making your experience with dogs non-frightening.
Now... picture yourself really getting this next point and find yourself excited to begin letting go of limiting beliefs.
"Your beliefs about the market affect your trading in the same way a child's belief about dogs affects his or her experience with dogs."
The moral of this story? Uncovering your beliefs about the market and about yourself is essential to becoming a consistently profitable trader.
OK... let's take it to the next level and begin shifting any limiting beliefs you might have about trading and the markets.
You'll notice when you do this exercise, as you realize how quickly you can do it too, which in effect causes you to become really good at it.
To begin, then, take out a sheet of paper and write down your beliefs about yourself as it relates to trading. You can start by using "I am" and "I feel."
For example...
► I am a good trader.
► I am a bad trader.
► I am impatient.
► I am patient
► I follow instructions well
► I don’t follow instructions well
► I am smart
► I’m not good at math
► I feel good about myself whether I win or lose
► I feel terrible when I lose
To take the exercise further, write down how you feel and what your experience with yourself is like when you are actually trading.
For example,
► I like it when the markets move fast.
► I don’t like having too many positions on at once.
► I feel really excited.
► I feel really nervous about this position.
► This position is going against me. It’s time to get out.
► I’ve already lost 4 trades in a row. I can’t lose another one. I’ll hang on until I make money.
The next step is to explore where these beliefs came from. There is no right or wrong answer. You are simply on a "limiting-belief finding excavation."
To better understand this process, let’s look at an example of a belief you might have about the market:
Good performance comes from timing my entry into the market just right.
As you ask yourself the various questions, write down your answers, as shown in the example below.
► Where did this belief come from?
Answer: I hear it all the time from the guys on CNBC.
► What does this belief make me do?
Answer: I spend a lot of time trying to find the perfect criteria for entering the market at the exact right place. I buy as many systems as I can. I’ve learned about every technical indicator known to man.
► What does this belief keep me from doing?
Answer: I don’t have to spend much time with anything else because I can get into the market at exactly the right point every time. I don’t worry about my position sizing strategy at all, and there is no need to spend much time on working on myself.
► How could this belief be limiting me?
Answer: I may think that entry criteria is the most important thing to making money. If I don’t make money then something is wrong with my entry criteria. I continue to follow the trail down the endless rabbit hole of indicators and system development at the expense of really learning how to trade.
► Is this belief helping me or hurting me?
Answer: This belief is probably hurting me since timing my entry is probably the least important thing when it comes to making money in the market.
► Can I change this belief?
Answer: I should be able to do so very easily by realizing that there are other things that are far more important to my success.
You want to get to the point where the limiting belief loses it power over you and more empowering beliefs take hold.
It won't be long before you'll quickly become aware that your beliefs are a major influence on the way you trade or don’t trade.
You can ask yourself the following questions to help identify your beliefs even further...
(1) What do I believe about the markets?
(2) What do I believe about trading?
(3) What trading methods do I believe work?
(4) What risk management techniques work the best?
BONUS: Here are the beliefs I have in answer to these four questions. The more you model these beliefs, the more quickly you'll adopt them as your own and, the more successful you'll become.
(1) I believe that the markets always provide me with an opportunity no matter what is happening in the world.
When there is a crisis in the world, there is even more opportunity when I understand how to take advantage of it.
(2) I believe that my initial exit strategy and my profit taking exit strategy are significantly more important than where I enter the market.
Why? Because I also believe, you must let your winners run and cut your losses short.
(3) I believe that Trend Following is the most successful method for trading. With that said my definition of trend following may be different than most.
I try to catch trends as close to the beginning as possible, add to my position when the market breakout, and add to my position again when the market has a pullback (if the opportunity presents itself).
(4) I believe the best risk management technique is a combination of fixed fractional position sizing and fixed ratio position sizing. I do not believe you should risk more than 2% of your account equity on any given trade.
Are you beginning to see just how easy it is to develop a winning trader's mindset?
You'll realize as you begin to shift your beliefs about trading; you experience nothing short of a miracle when you can understand the power of this exercise now.
In addition, you can download my CashFlow Trading Mindmap, as well. Be sure and review the mindmap before the next video is released in two days.
Video #3 is one not to miss!
I'll be doing a live training, and sharing some of my best-kept cash flow trading secrets. If the opportunity permits, we'll do some live trading, as well.
We'll talk about the three questions you need to be asking and answering to capitalize on Cash Flow trading opportunities.
You'll also discover the 4 main CashFlow trading methods you can use to siphon in cash from the Forex like a proverbial ATM machine.
The results from this trading approach will knock your socks off. You don't want to miss it.
Plus... I'm giving away one of my proprietary Cash Flow trading indicators. This indicator gives you real-time feedback on market trends to maximize gains & limit losses
You'll be able to download the indicator for Free.
And remember to enter the contest to win a Falcon 25 Trading computer along with a copy of my Forex CashFlow Method training course.
This Falcon computer is a beast!
Until then... Happy trading!
100% FREE Profit-Pulling Forex Software & Training!
Discover The Breakthrough Software That Executes Trades With Lightning Speed For Bigger Gains… More of the Time!
- Calculates position sizing and stop loss/take profit points automatically.
- Built in Nitro-mode for super fast trade execution so all your orders get filled.
- Anti-Spike technology ensures you don’t get whipsawed oil of a potential profits.
Download For Free
