You create conflict in your thoughts because you carry out some internal process with good intention and ignore other parts. Those ignored parts develop a conflict with other ignored parts. You lose control over it.
You know some of the basic conflict handling techniques which are becoming more sensitive to messages coming from your internal parts, changing the behaviour to something that is more acceptable and making suitable modifications to existing parts to fulfil all your intentions.
Now you realize that profit comes from a good internal model while losses are a result of limitations to that model. Many traders believe in the power of belief. All of them have certain values in common. When you want to change your belief to that of successful people, we suggest you follow the below-given list. Many of these are at the spiritual or identity level. Also, check how many of these beliefs do you already have.
Beliefs of a top trader
The universe has a purpose and is continuously evolving. When disastrous events occur in one’s life; they revert to who is the victim and behave as if the world is against them. After many years, they look to that event as a turning point in their lives. A lot of traders went bankrupt early in their trading career. They consider that as the turning point in their lives. Everything happens for a purpose.
You are part it, so when you change, you change it. What you think as reality is not reality. It is your internal representation of reality. So when you change your internal representation, you change the reality for you.
There is no such thing as a true belief. A belief which gives more choices is useful. A belief should not restrict your choice. Else, that belief cannot be a reality. Do not stick to any belief; be open to possibilities. You will have a much more flexible approach to life.
There is no success without commitment, but once you are committed, then the universe moves to support you. To be successful in trading, you must have the highest commitment. You should know your requirements, your goal and the model which works for you. Develop sensing mechanism to know when it’s not working. Refine your behaviour until you get what you want. The formula for success is will-power and determination.
Go with the flow. If you take the impulses that come along with trading and respond to them, there’s no real embarrassment if they don’t work. Your embarrassment should be if you don’t work. When you have this kind of belief, it becomes easy to bounce off of adversity and keep going forward. You explore some of the wonders of life and expect miracles all the time. We encourage you to adopt this kind of belief.
Whatever happens to you, you are in some way responsible for it. A fundamental attitude of investing is responsibility. If you accept responsibility, you get a lot of choices, and you can change. If you do not accept responsibility, then you become a victim. This does not give positive results. If you are blaming someone else for your mistake, then you will surely repeat your mistakes. If you are unable to get this attitude, then you can learn it using the top tasks of trading.
Trading is 100% psychology, so you must master it yourself. You should develop a mental capacity to recognize good trades and feel that the signal is correct. If you don’t use a correct mental strategy to execute your trade, then the system won’t work. Therefore, it is you who plays an important role in your trading.
Trading success has nothing to do with market analysis. You should find only low-risk ideas and trade them. Position sizing should also be done without fail.
Losing money does not mean you are making a mistake. In fact, you are making a mistake when you are not following your trading rules. Making a mistake could also mean not reviewing your trades every day and correcting them. A daily self-analysis is critical to peak performance in trading.
Proper position sizing is critical to trading success. If you don’t do position sizing, you can never be in overall profit. You should not risk more than a predefined percentage of your account. You cannot control risk if you don’t know that amount.
The golden rule of trading is to cut your losses short and let your profits run. This means you should take trades that offer you a minimum of 1R and profits should be in multiples of R.
Top traders acknowledge the importance of trading ecology. On the biggest problems, traders face, they don’t know how to value the things they are doing. Whereas, top trader are always conscious about their purpose, and they try not to upset themselves. This belief helps them to profit consistently and avoid disasters.
You need a business plan that will act as a working document in your trading. Developing such a plan might take a few years, but will simplify your trading process once you develop it. This plan should include the following:
- An analysis of yourself, including your beliefs, your strengths and weaknesses.
- Systems which will tell you the big picture, work under different market conditions and markets that move entirely on non-related concepts.
- A worst-case plan to be ready for any situation.
If these beliefs are most of your beliefs, well and good. If you don’t have most of these beliefs, start believing in these. For sure you will see better results. Also, as human beings, our purpose is to share uniqueness with other fellowmen. A trader does so by sharing his thinking with others through classes, seminars, and numerous one-on-one interactions. So whenever you can, try sharing your techniques and strategies with others. Get their feedback. Support novice traders, there is so much to learn from them as well. By doing this, you will only become a better trader while losing nothing at all. Do you agree with us? Let us know in the comments below.