Much has been written about the power of positive thinking, but based in mis-placed trading optimism and hope, these are the 6 most common damaging “positive” ways we can adopt to ensure we deliver consistent donations to the market rather than to your trading account.
Your Mission as you read:
a. How many ticks can you put beside these six?
b. For those that resonate then do something with what you read!
– Telling yourself the story that “I am a great/disciplined trader” (when you are not)
Be honest with yourself, own the results you have achieved (or not achieved) now and in the past and use them as the impetus for changing what you should do that you are are not doing.
You can chant all of the affirmations you want but BE REAL about where you are otherwise the lack of congruence between that “great trader” and what is real for you now will NEVER serve you.
2. Positive filtering
– focus on good results and ignore negatives
Anyone can have one result or even a few results that go their way and of course it is vital that you mirror what is good in your trading.
However there are two things about results:
a. There must be an honesty and balance of focus between those trades that go your way and those that don’t in terms of profit. The home run is no more nor less important than any other trade for it is the cumulative effect of your trading as a whole which determines your success.
b. So what is a good result anyway? For most unless it is profit it is not. This of course is a focus on the $ result of any trade. We know (and every experienced trader on the planet will tell you so) that it is not the $ result of any one trade that matters. Rather it is the informed and considered decision making that goes behind your actions, on a consistent basis, that will take you where you want to be as a trader.
– If a trade goes against me it is never my fault
Owning your trading results is fundamental to your long term success. The cornerstone of trading success is to take responsibility for your trading results, and recognize preventable errors, ascertain the cause (knowledge?/system?/execution discipline?) and adjust accordingly. If you fail to take ownership and place the blame (The market etc etc) then you will NEVER develop and grow as a trader.
4. What if ?
– talks yourself into action on false opportunities.
The reason for the “itchy-trigger syndrome” as i like to call it are multi-fold in origin, but really all can come down to the fear of missing out.
It may be that you think you can “feel-the market”, but the reality is that you should, indeed MUST, trade what you see NOT what you think otherwise you might as well throw that trading plan (and your cash) in the bin. It will happen that your premature entry or belated exit may create a few extra bucks on one trade but be assured that this, plus interest, will disappear shortly after.
5. Future orientation
– focus on you will do better in the future not what you could be doing now
OK so you DO see the merits theoretically of having a plan, getting the knowledge you need to, developing those systems around your trading e.g. time management, contingency, proper journaling and formal analysis of what and why you are doing, if you are to achieve your full trading potential…
BUT you haven’t..Yet.
You thought exactly the same things were important 3 months ago, or 6 months or 6 years and still haven’t made them happen…there is always an excuse why you didn’t do it yesterday and are not doing it today.
GET REAL….you are in the market now so you MUST work on these things NOW
6. Inability to disconfirm
– rejects evidence that may contradict positive view of you as a trader
So we have explored the common first 5 now we get to the real CASH thief!
We don’t like to think of ourselves as a failure, as that how we often view not doing the right thing. So we talk ourselves into a state of it not being so bad really and hey its not failure..its feedback as i have hear from a few of the Personal development gurus out there).
REAL DEAL to accept that any of the above may be your TRUTH NOW has got to be the first stage in you moving forward. OR you could wallow in your OK results (at best!).
Your alternative look for those out there who will back your stories, tell you if you chant religiously that “I am the millionaire trader” that the universe will deliver, or subscribe to whatever you hear, read or see that backs up what you are doing now. All of these may make you FEEL better in the short term but will not create that difference in your trading results that you desire.
It is of course your choice what you do from here, your mirror can be one of your greatest trading allies..have an honest look into it and take action and feast on the consequences or don’t and face the consequences of inaction…simple!
Trade safe and see you at the next LIVE options trading room session….reserve your place at http://hawkeyeoptions.com/pages/room/