Law of Attraction Subconscious Mind Power
When expert traders have been exposed to thousands of examples of intraday price and indicator patterns, their subconscious minds are able to extract patterns from the noise in a manner that they themselves cannot verbalize. This is implicit learning. As new information from the market arrives second by second, the subconscious mind integrates it with the old knowledge in a complex, Bayesian fashion. One or two pieces of discrepant information one or a few ticks against one's swing position, for example will not necessarily trigger a decision to abandon the trade. As the discrepant information accumulates, however, it changes the expert trader's estimates of the likelihood that the trade will succeed. The trade starts to feel wrong before the trader can put his finger on what's not right. That gut impression comes from an important place and is not just a subjective intuition. It is the result of a rigorous (subconscious) mathematical analysis
Learning to trade successfully on the Forex is about self-empowerment and independence. I personally believe that self-empowerment is learning how to fish and that dependency is all about being handed a fish to stay alive. I know there are many companies out there offering education, trading strategies, and even trading systems that claim to take you from rags to riches in a short period of time. Make no mistake, there is no holy grail You cannot buy any indicator or trading system that works 100 percent of the time any more than the airlines can buy an autopilot system that eliminates the need for pilots. If you are being courted by any company that is leading you to believe you can buy a trading system with buy and sell signals that will take you from rags to riches, you will be greatly disappointed.
If you picture in your mind the price action ofJCB Superstores, you may recognize three chart patterns a double bottom, a double top, and a dead-cat bounce. To knowledgeable investors, chart patterns are not squiggles on a price chart they are the footprints of the smart money. The footprints are all they need to follow as they line their pockets with greater and greater riches. To others, such as Tom, it takes hard work and pavement pounding before they dare take a position in a stock. They are the ones making the footprints. They are the smart money that is setting the rules of the game a game anyone can play. It is called investing.
As a result, most people don't believe in their ability to actually make big money in real estate. These negative thinkers erect a wall of excuses that blocks their vision. This wall prevents them from seeing the profit potential that lies in front of them. So, will you join the ranks of the naysayers Or will you open your mind to a promising future
Note The following is an excerpt from Gail Osten's interview with Brett Steenbarger in the March, 2003 issue of Stock, Futures, and Options (SFO) magazine entitled The Windmills of Your Mind and the Pathway to Your Trades . The entire interview can be accessed at www.sfomag.com.
Most investment decisions share three important characteristics in varying degrees. First, the investment is partially or completely iircvcrsiblc. In other words, the initial cost of investment is at least partially sunk you cannot recover it all should you change your mind. Second, there is uncertainty over the future rewards from the investment. The best you can do is to assess the probabilities of the alternative outcomes that can mean greater or smaller profit (or loss) for your venture. Third, you have some leeway about the timing of your investment. You can postpone action to get more information (but never, of course, complete certainty) about the future.
In commercial real estate, there are many different techniques that can be offered that look more attractive than they actually are. If you keep your own goal firmly in focus you can be more likely to stick to the techniques that take you closer to your goal rather than farther away. The key to this is to keep your goal clearly in your mind and not to deviate from any technique that will lead you away from the ideal. While you may give in or compromise in the end, it is best to leave that concession to the final moment. You should attempt to visualize the entire deal before you need to learn exactly where to make compromises.
Trading is a game that you set up and agree to. You only have two choices about how you will get to where you are going. The first is an unconscious method your mind will create your reality from your pictures ofthe past. And you know that it is most ready and willing to do that. In fact, that is one of the main functions of your brain's left hemisphere. But this part of your brain can only duplicate earlier situations IT CANNOT CREATE. In fact, your mind cannot accept the notion of creation or the notion of disappearance. Your only other option is to become conscious of your notions. A notion is another word for noticing. When you notice something (or get a notion), you give it your attention. When you begin to notice how you are noticing, you fall into AWARENESS. When you start becoming aware, you will be out there on the razor's edge of choice and always willing to make one. You will become aware that what you see on your brain screen is much more important than...
In one of my all-day seminars, I go through the following exercise It is important that you relate to my definition of a goal. It must be worthy by this, I mean that it should be worthwhile for your overall happiness and financial independence. It should also be measurable. This means that it should have a clearly readable timetable that will allow you to ascertain how far you have progressed toward that goal. That is the gauge that will help you make adjustments if you get sidetracked. Read over the following material and then let your mind take over. Better yet, have someone read this section to you. I want you to clear the slate in your mind. I want you to think only about the things I tell you to think of, remembering things from your past only to make the scenes I describe more vivid to you. Erase the mixture of colors in your mind, just as a child would wipe the blackboard with a dusty eraser. Now, all you see is that misty white slate a white mist fills your mind. Unlike dusty...
If you don't have the time to begin your real estate investment business, maybe in your mind, you don't really need to do it. Maybe you simply want to do it, and want alone may not be enough to get you started. After all, if you work during the week at another job, you will have to search for and evaluate property on the weekends. You'll need to make phone calls when you can during the week or in the evenings. There's always a way to make your dreams come true as long as they are truly your dreams.
Just as important as setting specific goals, you must visualize yourself successfully reaching those goals each and everyday. If you can't see yourself in your mind's eye as a success, there is I remember some advice I'd gotten from a very successful off-the-floor trader who's since past away, Just as important as setting specific goals, you must visualize yourself successfully reaching those goals each and everyday. If you can't see yourself in your mind's eye as a success, there is no chance you will become successful. It just won't happen
A caveat As you study, try not to let your mind wander. If you have experience with bar charts, P&F charts, moving averages, oscillators, technical formations, etc., don't think about them. They do not have anything to do with this study. We do use graphs, but they do not incorporate the aforementioned factors.
Once your goals are firmly established in your mind and you are under way with your plan, the critical steps are just around the corner. You must implement your plan with the financing techniques, and how you use them will become an important aspect of your success in real estate investing. All the financing techniques and tips described in this book can be utilized in combination with each other, giving you endless opportunities to best solve a problem at hand or seek the best format to buy or sell your real estate to take you closer to your desired goal. The subtleties of these techniques will begin to become evident Keep your goals constantly in your mind. Review them, update them, and work toward them. They are what will help keep you out of trouble. Your goals will keep you on the right track. The following list will show you many opportunities to the end result of disposing of real estate. Review this list from time to time to remind yourself that disposition of real estate is...
Other reasons aside, the primary reason that I suggested you use them is because their trading platform is so easy to use. A newbie trader with limited understanding should relatively easily figure out how to place market orders, entry orders, stops and limits. Other brokers' trading platforms are more complicated and far less intuitive for implementation of trades. When you are learning about Forex trading it is better to stay with the simpler to use brokers (FXCM & RefcoFX) as you don't need to clutter your mind with the mental gymnastics needed with the more complicated brokers. But by the time you are reading this eBook, Forex Sailing , I would now consider you to be somewhat more advanced in your understandings and ready to learn about the more complex brokers' trading platforms.
Your beliefs about the market create your reality of the market. Beliefs are assumptions about the nature of reality, and because you create what you believe in, you will have many proofs that the market operates the way you think it does. For instance, a trader who believes that the market is abundant and generous will act in such a way that he or she experiences abundance a person who believes that no one can make money from the markets will not receive money from the market. Each trader will have many experiences to prove that his or her personal belief about the market is really a fact about the market. You can change what you believe and thus change your experiences in trading. In this book, we are going to explore in detail how to trade each of the five dimensions. We will then put them all together for a profitable approach to decision making in the markets. We will also discuss our proprietary software, which eliminates most of the work and errors in analyzing the markets.
Visualization doesn't mean that as soon as you get the picture right in your mind, you will immediately produce the result. But it does mean that generally, over time, your trading decisions and actions can be adjusted to correlate with your new financial objective. Your mind continually scans large quantities of information. Then, it selects a very small portion of that information on which to focus. There are layers and layers of mental images that influence your every activity, and learning how to select among them is a major step in learning how to control not only your thinking processes but your behavior as well. Ifyou wish, you can become very active in this scanning and selecting process, and can actually choose consciously images and thoughts that will enable you to trade more freely, going beyond self-protective instincts that keep you from trading the way you would like.
You only go to parties when you've just made a sweet deal in the stock market. If you couldn't tell others of your shrewd stock picks and your latest killing in the market, there'd be little point to owning securities. While the thought has, hopefully, never crossed your mind of sending copies of a brokerage statement out to friends and relatives, you've been known on more than a few occasions to offer unsolicited stock tips and investment advice.
It's a great feeling, and it sometimes happens. But often it doesn't go quite that way. Often you get out with a loss. Sometimes you take a small profit and leave a big one on the table. Occasionally you change your mind and get out because of a news item. But more often you decline to take a position in the first place because of the news background. There are times when you would have bought the stock, but the market seemed too risky. There are other times when you moved in too soon, thinking the stock just couldn't go any lower. There are times when you bought too late, because you didn't want to take too much risk.
Do you want a small business, a medium business, or a big business Keep in mind that little businesses make a little money, medium businesses make medium money, and big businesses make big money. Does that change your mind So let me ask it a different way Do you want to make big money
I did not check the performance of rounded cups versus V-shaped cups, and I tried to limit my selections to the U shape. I consider Figure 10.2 to have the V-shape (but used it in the study anyway) and the other figures in this chapter to be U-shaped or rounded. You may find it easier to picture an inverted teacup in your mind as you search for it.
Buyers and investors are often more receptive to noticing the signs of a weak market than sellers may be. Sellers have a tendency to stay in a state of denial for a while, refusing to believe the market is taking a turn for the worse. They'll convince themselves that any slowdown is a temporary fluke or won't affect an irresistible property like theirs. Such a seller will be reluctant to consider a low offer. In this case, it's best to move on to the next deal rather than wasting time trying to get a reluctant seller to see the light. Nevertheless, keep this seller in the back of your mind and check back after a few weeks or months. By that time, the seller may have accepted the reality of the market and might be more agreeable to discussing your offer.
Borsellino states that the preparation to trade begins with a routine, such as workout, meditation or listening to music. This will clear your mind of all distractions and help you to get ready for the trading day. If there is a personal crisis or issue, it is better to sit on the sidelines and study the market than to trade with mental distractions. He makes clear that the primary objective for a trader is to make well-executed trades, not to make good money, and that the best traders are those who balance both personal psychology with technical analytic skills. A major skill for the trader to learn is when to trade and when to wait patiently on the sidelines, monitoring the market. In order to achieve psychological and technical balance, he suggests that a trader follows the Ten Commandments of Trading . The following rules are congruent with those of Jesse Livermore.
Learn to be totally honest with yourself. For example, when you follow your instincts and it works to your favor, imprint those feelings. It's like making a perfect swing with a golf club. When you feel the groove, you must imprint it in your mind so you can repeat it. On the other hand, if you take a profit totally by accident, be able to separate this feeling from the feeling you had when you honestly followed your instincts. Accidental wins are not repeatable, but instinctual trades are. Big difference
When you read business news, play it out in your mind. What good (or bad) can logically be expected given a certain event or situation If you're looking for an effect ( I want a stock price that keeps increasing ), you also want to understand the cause. Here are some typical events that can cause a stock's price to rise
The answers are all in the way you think about it. The irony is that trading can be as much fun and as effortless as your experience of it has been on occasion but experiencing these qualities consistently is a function ofyour perspective, your beliefs, your attitudes, or your mindset. Choose the term you are most comfortable with they all refer to the same thing Winning and consistency are states of mind in the same way that happiness, having fun, and satisfaction are states of mind. The threat of pain generates fear, and fear is the source of 95 percent of the errors you are likely to make. Certainly, you can't be consistent or experience the flow if you're consistently making errors, and you will make errors, as long as you're afraid that what you want or what you expect won't happen. Furthermore, everything you attempt to do as a trader will be a struggle, and it will seem as if you are struggling against the market or that the market is against you personally. But, the reality is...
In the process of becoming a professional FOREX trader, there are five levels through which it has been proved that practically everyone will have to evolve. Sometimes you might think that you have reached a higher level, just to find yourself again at level one or two. I like to use the following as a way to help determine where you are at a certain point in your evolution as trader. Assume that you are on your way to my office building to work with me as a professional currency trader. When you get to the lobby, you find out that all the professional traders in my office are on the fifth floor. The problem is that there is only one way to get to the fifth floor, and that is to work your way up. Obviously, you have made your mind up that trading currency is something you want to do, and you have committed to by investing in this book. So you decide to take the journey and start off on the first floor.
Not every trade can be a winning one. As a result, traders must be psychologically capable of coping with losses. Most traders, even successful ones, go through stretches of losing trades. The key to being a successful trader, though, is being able to come through a losing stretch unfazed and undeterred. If you are going through a bad stretch, it may be time to take a break from trading. Often, taking a few days off from watching the market to clear your mind can be the best remedy for a losing streak. Continuing to trade relentlessly during a tough market condition can breed greater losses as well as ruin your psychological trading condition. Ultimately, it's always better to acknowledge your losses rather than continue to fight through them and pretend that they don't exist. Make no mistake about it regardless of how much you study, practice, or trade, there will be losing trades throughout your entire career. The key is to make them small enough that you can live to trade another...
Sit or lie down as comfortably as possible and close your eyes. Imagine all the possible or impossible situations that your mind likes to draw. Do not say anything. Give yourself plenty of time and do not rush. Open your eyes as little as possible and remember as many details of your experience as you can. Remember what you saw, did, and thought Write your details on a blank sheet of paper. The house represents your mind or soul. Is somebody in your house Did you go inside to look around What did you find
That would do well if the market stabilized but how would you be doing if it did not While playing with options, don't forget that your mind gets played with while in the positions. Your proposed position has naked exposure and it's not like playing futures with a stop. Most less capitalized traders end up panicking and puking because the leverage of OTM options expands on them. Options positions should not be used with a day trader mentality. Options are better suited for a 'week' trader or a 'month' trader approach. Therefore (and please develop the good habit of limiting risk exposure, if not for you, for your family and dependants), for .10 or .15 less of a credit you can have the outside protection in the way of the November 95P 125C strangle (for 7 days anyway just until expiration) instead of taking on the short DEC strangle naked. By then, perhaps you will have made a bit of money or you can roll into a long OTM DEC strangles for a reasonable price. I don't think that I would...
Forcing him to do an inordinate amount of work with no rest and giving him intermittent beatings, they kept asking, Have you got your mind right yet, Luke Eventually, after considerable suffering, Luke finally told the prison bosses that he had his mind right. They said that if he didn't, and tried to escape again, they'd kill him for sure. Of course, Luke attempted another escape, and true to their word, the guards killed him. Like Luke, many traders, whether they realize it or not, are trying to have it their way by beating the market as a result, they get financially and emotionally killed. There are easier, infinitely more satisfying ways of getting what you want from the market, but first you have to be willing to get your mind right.
You need to let go of the fear of being wrong so that you can watch and observe the market from an objective clear viewpoint. If you can't let go of that fear, it will cause you to make mistakes and poor trading decisions. This is because if you concentrate on your fear, it will cause your subconscious to act out that fear and give you the losses you're trying to avoid. It will happen this way every time. That is just the way our subconscious mind works. What you think about is what you get. (We will talk much more about this in Section 3.)
Or, sit and quietly think about a trade that went very well, something recent, and picture in your mind doing that again. But let's slow things down a bit. Even if the trades you have prepared the night before have already opened, please take just 30 seconds and prepare yourself mentally. Sit quietly for a moment. Take a deep breath. Picture in your mind how you will react to seeing a profitable trade, or a losing trade. Imagine yourself handling the trade with poise and confidence, just like Spock would expect you to do.
I hope that after reading the first three chapters you are getting die idea that just because you are acting in the capacity of a trader, doesn't mean that you've learned the appropriate ways to think about what you do. As I have already stressed several times, what separates the best traders from everyone else is not what they do or when they do it, but rather how they think about what they do and how they're thinking when they doit. If your goal is to trade like a professional and be a consistent winner, then you must start from the premise that the solutions are in your mind and not in the market. Consistency is a state of mind diat has at its core certain fundamental thinking strategies that are unique to trading. Experiencing a few or more winning trades can convince almost anyone that trading is easy. Recall your own experiences think back to those trades that brought a stream of money flowing into your account when all you had done was make a simple decision to buy or sell.
In Part One of this two part series, I pointed out research that suggests that the subconscious processing of athletic performers displays a Bayesian quality, weighting recent events against past ones to respond to shifting patterns of circumstances. When a market shifts volatility, for example, the expert trader must integrate the new data with his or her large database of experience to anticipate the next tick or the next directional move. How much weight to give the new experience, and how much to alter that weighting with each fresh experience, is the task of the Bayesian. It appears that the subconscious mind is capable of performing sophisticated integrations of new and old data to anticipate future events. This allows for peak performance under fast, stressful conditions that do not permit conscious, explicit processing, such as those faced by fighter pilots, professional boxers, and scalpers.
The answers are all in the way you think about it. The irony is that trading can be as much fun and as effortless as your experience of it has been on occasion but experiencing these qualities consistently is a function of your perspective, your beliefs, your attitudes, or your mindset. Our minds are designed to automatically block threatening information or find a way to obscure that information, in order to shield us from the emotional discomfort we naturally feel when we don't get what we want. You won't realize it in the moment, but you will pick and choose information that is consistent with what you expect, so that you can maintain a pain-free state of mind. However, in the process of trying to maintain a pain-free state of mind, you also take yourself out of the opportunity flow and enter the realm of the could have, the should have, the would have, and the if only. Everything that you could have, should have, or would have recognized in the moment appeared invisible, then all...
Rich dad smiled and said, This is why you need to practice reading financial statements. Just as you learn more the second and third time you read or listen to someone, you learn more and more the more you practice being financially literate. More things come into your mind that your eyes often miss.
I You're content investing through one of the bigger fund companies with a broad array of good funds. For example, if you deal directly with one mutual fund company that excels in all types of funds (such as Vanguard), you can minimize your fees and maximize your investment returns. Given the breadth and depth of the bigger companies' fund selections, you should feel content centralizing your fund investments through one of the better companies. However, if you sleep better at night investing through multiple fund companies' funds, I won't try to change your mind.
When we learn to ride a bicycle, we train our subconscious mind to ride our bike. Once that is done, we don't have to think or remember how to ride a bike as we ride. When we learn to drive a car, we also train our subconscious mind. And that is why, once we have trained our subconscious mind to drive, we can drive and talk to someone else, eat a hamburger, think about problems at work, or listen to the radio and sing along. Driving is (hopefully) automatically handled. The same can happen with reading financial statements.
And it is probably the most important part in causing either profit or loss in trading. When one is dominant in the paraconscious part, everything works out effortlessly. The key word here is effortless. You can always tell from which part you are dominant because the market and the world are a mirror of your mind functioning- If you feel the world (market) is supporting you and that life itself is a support system just for you, you are operating from the paraconscious or the right hemisphere. If trading or life is a struggle, then you are coming from the idiot part of your mind, the conscious drunken monkey* part. If life seems to be a roller coaster with some very good and some very bad times, you are operating from yourcore. When you operate from all three parts of your mind, using them as they were biologically deigned to be used, then you are at your happiest and operating with the most efficiency.
Trading is hard there are more unsuccessful traders than there are successful ones. But more often than not, traders fail not because their idea is wrong, but because they became too emotional in the process. This failure stems from the fact that they closed out their trade too early, or they let their losses run too extensively. Risk MUST be predetermined. The most rational time to consider risk is before you place the trade - when your mind is unclouded and your decisions are unbiased by price action. On the other hand, if you have a trade on, of course you want to stick it out until it becomes a winner, but unfortunately that does not always happen. You need to figure out what the worst case scenario is for the trade, and place your stop based on a monetary or technical level.
I look at it this way, if you get all pumped up and glossed over with positive beliefs about your market success, your conviction will lead you to mismanage losing trades. That is why belief systems are so important to a trader. If your belief system tells you the current trade will be a winner-and it isn't-the need to confirm that belief in your mind will literally force you to let losses run, to stay with losers, something no successful trader ever does. An outrageously positive belief that the next trade or two will turn your account around or make a small fortune for you is most dangerous.
You need to change your behavior so that the mistake doesn't happen again. Every mistake can be changed into a trading success if it is thoroughly assimilated in your mind and action. In this way, you can commit other mistakes, but not this particular one again. If the mistake comes from your system, redefine and refine the strategy so that you don't encounter further problems in following its rules and signals in the future. As soon as you understand that the result of your trades has nothing to do with a mistake, you will be opening your mind to hundreds of possibilities, and you will be able to finally comprehend the very nature that lies behind every apparent mistake. Taking action properly will lead you to a successful trading career, where you never stop learning. The process will be slow and probably repetitive, but your attitude when dealing with mistakes and your constant work at finding out and correcting the situation gradually will shape your future as a trader and, most...
This is different to many other Elliott wave software programs available today, however, it is perfectly logical, because it works on the data at hand on a day-by-day basis - this is how we work as traders. You cannot change your mind about a current trade you may be in as time moves forward, so why should your software be able to
Just as a physicist knows that his kitchen table is composed largely of empty space between electrons, he still confidently uses it to support his lunch. You can live and trade in the world using a Westerner's view. At the same time you can begin to open your mind to the possibility that the alternate worldview has a validity of its own.
Negative emotions have a tremendous impact on your mind and body. They will affect all your thinking processes and become an obstacle to your trading. You can't feel happy, confident, and peaceful when you are having a negative emotion. You can't be in control either. The emotion takes hold of your mind and leads to wrong assessments or decisions. Accept your losses as part of the business. Learn from them, and try not to repeat the mistake in the future. Take some time off periodically in your daily schedule to relax your mind and your body. In this way, you can take the attention off the negative feelings and turn toward more positive thoughts. You could try to use some sort of meditation routine as a means to achieve peace of mind. Among other activities, physical exercise is an excellent way to get rid of all the accumulated stress, and it also keeps you healthy and thus more fit and energized when you come back to the trading charts. Listen to good music, music that elevates your...
Be aware of what you think, especially when taking a trade. Thoughts tend to materialize, independent of whether they are positive or negative. Do not judge yourself observe and detect any negativity arising. Replace negative thoughts with a positive counterpart. Use visualization as a means to make the negativity disappear, replacing it with a powerful and positive energy that fills your mind and body with renovated impulses. Feel strong, feel calm, and feel that you are in control.
The science of cybernetics gives us a very effective way to look at the human brain and nervous system. Our subconscious mind is actually a goal-seeking servo-mechanism, in other words an automatic human guidance system. Psycho-Cybernetics is the science of this human guidance system.
With the perspective of making yourself available, you know that your edge places the odds of success in your favor, but, at the same time, you completely accept the fact that you don't know the outcome of any particular trade. By making yourself available, you consciously open yourself up to find out what will happen next instead of giving way to an automatic mental process that causes you to think you already know. Adopting this perspective leaves your mind free of internal resistance that can prevent you from perceiving whatever opportunity the market is making available from its perspective (its truth). Your mind is open for an exchange of energy. Not only can you learn something about the market that you previously didn't know, but you also set up the mental condition most conducive to entering the zone. The essence of what it means to be in the zone is that your mind and the market are in sync. As a result, you sense what the market is about to do as if there is no separation...
If you don't have a system, you will trade your beliefs about the market. Here is the sad news, once you made up your mind about your beliefs you are not likely to change them. It's is like you have become insane. The only time when the insanity is cured is when you are out of money. Then you may say to yourself I can t believe how stupid that idea was. (Here's the really scary part, and most of the time this is the case.), you don't see your insanity, as soon as you get more money you are out to prove your beliefs again. Guess what happens You lose all your money again. It's amazing. It becomes a very profitable cycle for us professional traders. We love to take your money, and may even listen to your market tales. So a trading system for me solves that problem. My mentor told me If you want to win in trading, you have to have progress in knowledge. Progress in knowledge comes from your efforts to find fault with your theories, rather then prove them correct. We are not in this game...
What about the big winners Doesn't the old adage say that you should let your profits run Yes, it does, and it is probably good advice to listen to every now and then, but in trading it also has its price. The price is that you lose track of what is average. The really big winners are usually few and far between the rest are just a bunch of look-alikes there to confuse you. By staying away from all of them, you are freeing both your mind and capital to milk that big winner several times over in a sequence of average trades, while at the same time allowing yourself to step in and out of other markets as well.
Say that you're considering a stock investment and the company you're looking at has earnings of 1 million this year. You may think that's a nice profit, but in order for this amount to be meaningful, you have to compare it to something. What if you find out that the other companies in the industry (of similar size and scope) had earnings of 500 million Does that change your thinking Or what if you find out that the same company had earnings of 75 million in the prior period Does that change your mind
The second part is your mood when repeating the affirmation. If you don't believe it, feel doubts, or even have a cynical reaction to it, your feelings about the affirmation will be negative, thus increasing the negative patterns about the whole subject in your mind. For example, you could affirm, I am a successful trader. However, it might not yet be completely true, so you can't relate to the statement, and it even could trigger a contrary reaction. In this case, you could add, I am becoming a successful trader, and I am in the process of making lots of money with my trading. This would bring the reality much closer and still be positive and dynamic. The more you add positive emotions to your affirmations, the sooner they will come to fruition in your life.
A major concern has been raised that speculation in derivatives will result in the complete destruction of our financial institutions and monetary systems. Consider that even Alan Greenspan has warned that central banks are not immune to fraud and rouge activities. Consider that trading can bankrupt a county government. If this activity climbs the ladder to the state or federal level, we could see financial chaos. This is why it is particularly wise to keep market fraud in the back of your mind. However, the question of legitimacy should always be at the forefront of your mind when considering a currency fund, pool, or trading manager. Given the relative ease with which we can check registration status, credentials, and backgrounds, there are few excuses for getting involved in a trading scam. The fact that major firms have been deceived shows how dangerous the greed button becomes when unchecked.
My definition of a friend is one who perceives the best in you, and who wants the best for you. So I could not dismiss this feedback out of hand. If there's one thing I've learned in my brief trading career it's that closing your mind to events that disconfirm your expectations (and positions) is a sure road to the poorhouse. A good trader actively *looks* for facts that disconfirm his her hypotheses.
The picture you have of yourself will also determine whether or not you can be successful in trading. In other words, if you have a clear picture of yourself as a successful trader, that will go much farther than you can imagine in getting you to become and remain a successful, profitable trader. You will need to learn how to see that picture clearly in your mind. It is the only way to achieve success.
We often tell our traders, You have tried in every way to consciously solve your problems with no real effect You have tried this and you have tried that and have failed utterly. Now it is time to close your eyes and gei in touch with another part of your mind. The part that keeps you balanced in your chair, that pumps your heart and a thousand other things this part of your mind does for you every day of your life including dancing. Your conscious mind should decide where you want to go but without the unconscious mind's cooperation, you will not get there.
But the goal or picture in your mind must be within your capabilities. For example, in trading, if you picture yourself making a few hundred dollars a day or a week, then you can probably achieve that goal as long as you can see it in your imagination clearly enough. On the other hand, if you picture yourself making 5,000 everyday, no matter how clearly you picture that goal, it will be next to impossible to make it reality because it is probably not within your capabilities. The picture you have of yourself will also determine whether or not you can be successful in trading. In other words, if you have a clear picture of yourself as a successful trader, that will go much farther than you can imagine in getting you to become and remain a successful, profitable trader. You will need to learn how to see that picture clearly in your mind. It is the only way to achieve success.
I don't know what image comes into your mind when you think about trading forex. For many, it is the image of that super trader working with many screens, several phone lines, much action going on, everything moving fast and exciting. No, no and no If you have that image in your mind then simply erase it. I suppose Hollywood has a lot to be blamed for how the life of a trader is perceived by others Anyway, it's the complete opposite. Trading is boring. Sorry to disappoint you, but it is. If you are looking for excitement then trading is not for you. I always like to compare a trader with a hunter. The hunter waits for his pray with lots of patience as the trader waits for his trade. Waiting for the right opportunity is what will separate you from the crowd (the losers ).
1 Crank the volume Bark your bids as if you're a mad dog in control of the room. If you've ever had your parents yell at you, you know the effect this technique can have. It can rattle your opponent just enough to make him back off or make him think that you've lost your mind. Either way, you're in control.
We'll say you've already found a good income property, but the seller wants the normal 20 cash down. Let's assume that, even though you have a regular 40-hour-per-week job, you've made up your mind you are willing to work evenings and weekends to build real estate wealth. You don't have much money, but you're willing to do whatever it takes to get your investment plan in motion. To put it another way, you're ready to contribute yourself you're willing to substitute your time and energy in lieu of the cash down payment.
Any trading tactics must be based, in part on the proposition that feelings, intuition, call it what you will, enter into a trader's decisions. To some degree, we all have intuition. I sincerely believe that, through training, the subconscious mind can become receptive to thought and visual impulses, which will at some point in time alert (intuition at work) the trader to a piece of data he may have overlooked while scanning the Power Index line. Toward that end, I have included numerous graphs, each detailing one or two points dealing with the Power Index and Average Price. It is believed that, by breaking down points, individually or in twos, the ability to interpret the Power Index and the Average Price will be enhanced. This, in turn, will add to the store of knowledge in the subconscious mind, which, by extension, will sharpen the intuitive process. For this exercise, I have chosen the June 1984 S&P 500 futures contract. I include Figure 19, with further explanatory material, to...
Just as we meditated on the feeling of standing and walking, we can also meditate on the feelings of thoughts. Begin with a moment of your favorite meditation, just relax and clear your mind a bit. Then call on one of your grabby thoughts, perhaps a fear, or a desire, or an anger into your mind. Observe the thought and ask yourself What does anger (or whatever) feel like Is it a hot feeling or a cool feeling Does my body feel tighter or looser Is there an enjoyable element to this feeling, or is it only painful Just watch the thought step back and turn it around in your mind like an object that you are investigating. Does looking at your thoughts in this way change your reaction to the thought In what way If you find yourself getting caught up in the content of the thought, watch the caught-up-ness. How does it feel to be caught up in a thought like that
When you've trained your mind to think in probabilities, it means you have fully accepted all the possibilities (with no internal resistance or conflict) and you always do something to take the unknown forces into account. Thinkine this wav is virtually impossible unless you've
Etch into your mind never to make a comparison between two events or circumstances when only one is available. Sellers fall into this trap by making a direct comparison with the actual terms of a contract, as they would compare to what the seller wants. Ryan offered a price that was acceptable, a lot of cash (from the bank of course), and a second mortgage. He did not give the seller the option of taking cash instead of the mortgage. Buyers fall into this trap too, and get hung up on what they want. Ryan wants to purchase this property for the above -s tated terms. If there is no flexibility in his negotiations, he might have the property slip by. Likewise, if Ryan did not know about the pyramid he might try to get the seller to hold the second against the property being sold. Sometimes this works, but when the loan-to-value ratio is close to or at 100 percent, the normal secondary mortgage usually is not acceptable, and sellers know it.
Also remember, don't lower your stop once placed. If you do lower your stop, you are allowing for more loss than you originally planned for. You're also letting current action change your mind. It's better to get stopped out, and then get back in. Like riding a horse and you fall off. So what do you do You get back on
One part of your mind uses scientific techniques for discovering what is true. And let me quickly add here that I am not all that interested in what is true, because truth changes. It was truth that Zeus ruled the world. It was truth that the worid was flat It was truth that Nixon was not a crook. It was truth that Oilie North was a patriot. It was truth that heaven has streets paved with gold. It is academic truth that the markets are a random walk. No, I am not interested in the truth I am much more interested in lies that work. The main element of the scientific approach to finding the truth is to eliminate the things that are not true. This is known as creating a null hypothesis. Let's take the unfolding understanding of the mind. At a very deep level there simply is no such thing as your mind. There are only thoughts parading through and telling you that you are conscious and awake. As a sort of parallel, there is no such thing as a crowd, there are only groups of individual...
He sees all this using as many details as he can. You see, the details are very important with visualization techniques. The clearer you see the picture in your mind, the better your subconscious (success mechanism) will work to get you to your goal. But remember, the details are extremely important. The reason is your mind cannot tell the difference between an imagined experience and a real experience as long as there is enough vivid detail.
The idea is to create a carefree state of mind that completely accepts the fact that there are always unknown forces operating in the market. When you make these truths a fully functional part of your belief system, the rational part of your mind will defend these truths in the same way it defends any other belief you hold about the nature of trading. This means that, at least at the rational level, your mind will automatically defend against the idea or assumption that you can know for sure what will happen next. It's a contradiction to believe that each trade is a unique event with an uncertain outcome If you really believe in an uncertain outcome, then you also have to expect that virtually anything can happen. Otherwise, the moment you let your mind hold onto the notion that you know, you stop taking all of the unknown variables into consideration. Your mind won't let you have it both ways. If you believe you know something, the moment is no longer unique. If the moment isn't...
Keep in mind that your potential to experience emotional pain comes from the way you define and interpret the information you're exposed to. When you adopt these five truths, your expectations will always be in line with the psychological realities of the market environment. With the appropriate expectations, you will eliminate your potential to define and interpret market information as either painful or threatening, and you thereby effectively neutralize the emotional risk of trading. The idea is to create a carefree state of mind that completely accepts the fact that there are always unknown forces operating in the market. When you make these truths a fully functional part of your belief system, the rational part of your mind will defend these truths in the same way it defends any other belief you hold about the nature of trading. This means that, at least at the rational level, your mind will automatically defend against the idea or assumption that you can know for sure what will...
Whenever you value a building, divide the problems you find into two piles (1) economically unsolvable and (2) opportunity-laden. As your talks with tenants reveal the strengths and weaknesses of the as is property, you're valuing the property as it stands today. But at the same time, you're constantly rolling ideas through your mind. How might you profitably improve the property tomorrow Through the eyes of a critical buyer, you find faults and profit-draining negatives. Through the alert eyes of an entrepreneurial investor, you visualize ways to turn a lump of coal into a diamond.
Initially, you should only paper-trade to get comfortable. Eventually, work yourself in with smaller lots to continue to maintain your comfort and confidence levels. Remember that you are not initially looking to make big profits. In fact, you should try to take scalps even on small shares, knowing that as you get more comfortable scalping V* and points on 200 shares, you will automatically be trained to take the same scalps on 1000 shares. You are trying to train that autopilot inside your mind. This can only be done through constant repetition until you can literally take 7* to 7z scalps on stochastics bounces with your eyes closed. Congrats, there is your money maker You may cringe at the idea of just taking 7* to 72 scalps, but that is more than the average spread trade for a market maker (usually V )- As you get proficient with order routing and scalping, those 1000-share scalps can turn into 5000-share scalps. They add up
Why Because there are always unknown forces operating in every market at every moment, it takes only one trader somewhere in the world to negate the positive outcome of your edge. That's all only one. Regardless of how much time, effort, or money you've invested in your analysis, from the market's perspective there are no exceptions to this truth. Any exceptions that may exist in your mind will be a source of conflict and potentially cause you to perceive market information as threatening. As a result, your mind will automatically start scanning the market for the same pattern, circumstance, or situation that existed the last time you correctly predicted its movement. When you find it, your state of mind will make it seem as if everything is exactly as it was the last time. The problem is that, from the market's perspective, it is not the same. As a result, you are setting yourself up for disappointment. What separates the best traders from all the rest is that...
The mind's eye is a key term in using visualization techniques. This is where you do your visualizing. It's very much like when you read a book or someone tells you a story. You don't just listen to the words, you see the pictures in your mind's eye using your imagination. their mind's eye, they don't see them as clearly as they probably could. Remember, we said earlier that the mind can't tell the difference between an imagined experience and an actual one as long as the images are vividly imagined. Well, the problem is most people don't see the pictures clearly enough. Through time, their imaginations haven't been used enough to stay sharp and focused. So you will have to strengthen your imagination so that you can see the mental pictures extremely clearly in your mind's eye. Actually, there is a better term that Dr. Maltz uses instead of the mind's eye. He actually calls it The Theater of Your Mind. It works well because everyone is familiar with a movie theater. The screen, the...
We think when we lose that we need other techniques, more information, a new indicator, or an entirely new approach. What we really need is a new mind. All our trading problems could be solved by a change in the mind. The conscious mind is committed to the course of solving the problem by keeping the status quo. If you are a losing trader, you most likely are going to stay a losing trader until you change your mind. Now that you are convinced you need a new mind, let us see how our core works.
It will last only a short time (and you have to make up your mind quickly) It is true that markets sometimes make mistakes and that these mistakes can lead to arbitrage opportunities for those who happen to be at the right place at the right time. On this investment, that happens to be you if you act immediately. It will work only for investors with specific characteristics (and you have them) This is perhaps the most effective of the sales pitches because it has the best chance of being true. If you are different from other investors (you have lower transactions costs or a different tax rate), you may very well find that what looks like the right price to others offers riskless profits for you.
When you completely accept the psychological realities of the market, you will correspondingly accept the risks of trading. When you accept the risks of trading, you eliminate the potential to define market information in painful ways. When you stop defining and interpreting market information in painful ways, there is nothing for your mind to avoid, nothing to protect against. When there's nothing to protect against, you will have access to all that you know about the nature of market movement. Nothing will get blocked, which means you will perceive all the possibilities you have learned about (objectively), and since your mind is open to a true exchange of energy, you will quite naturally start discovering other possibilities (edges) that you formerly couldn't perceive. For your mind to be open to a true exchange of energy, you can't be in a state of knowing or believing that you already know what's going to happen next. When you are at peace with not knowing what's going to happen...
The best use of the option is, as has been stated, when you know you are going to buy. This is the time when you get the full benefits of gaining time without having the expense to carry the property. Later techniques, such as sweat equity, and other barter strategies where time (yours) and effort (also yours) are what is at risk, can also incorporate the option into the overall plan. Continue to open your mind to the concept that what you are really doing is moving assets, and that time and effort are but two of those commodities you have when you play the real estate game.
It is very beneficial to be physically and mentally relaxed before doing the visualization exercises. Here is a simple technique to use in the theater of your mind to bring on relaxation. 1) Sit down in a comfortable chair or lie on a bed. There should be no other distractions. Turn off the TV, radio, and the lights. Go into the theater of your mind. See yourself in a comfortable theater getting ready to watch a movie about you. 3) Lie down and imagine your body's a series of rubber balloons. There are two valves in your feet. They open and air escapes from your legs. Your legs collapse until they are empty and lie flat against the bed. A valve now opens in your chest and your whole body begins to collapse limply against the bed. Continue this exercise with the arms, the neck, and the head. You don't have to do this in bed. If you're in the office, try to fix a picture of yourself in your mind's eye of yourself lying in bed doing the exercise. You will actually feel the relief from...
Slope is quite significant in that it highlights, at times, unmitigated upward and downward pressure on the Average Price. As you draw in the top-to-top or bottom-to-bottom trendlines, fix firmly in your mind the angle of ascent or descent for that contract. They will repeat and your analysis will be more effective when you learn to recognize the usual slopes of the contract's price.
Why Because there are always unknown forces operating in every market at every moment, it takes only one trader somewhere in the world to negate the positive outcome of your edge. That's all only one. Regardless of how much time, effort, or money you've invested in your analysis, from the market's perspective there are no exceptions to this truth. Any exceptions that may exist in your mind will be a source of conflict and potentially cause you to perceive market information as threatening. If each moment is like no other, then there's nothing at the level of your rational experience that can tell you for sure that you know what will happen next. So I will say again, why bother trying to know When you try to know, you are, in essence, trying to be right. I am not implying here that you can't predict what the market will do next and be right, because you most certainly can. It's in the trying that you run into all of the problems. If you believe that you correctly...
A functional level is, one where you find yourself just naturally operating out of a carefree state of mind, perceiving exactly what you need to do and doing it without hesitation or internal conflict. However, I do have a word of caution for those of you who have already looked at the exercise. On the surface, the trading exercise looks so simple that you may be tempted to do it now, before you thoroughly understand the implications of what you are doing. I strongly suggest that you reconsider. There are some subtle yet profound dynamics involved in the process of learning how to install new beliefs and change any existing beliefs that are in conflict with the new ones. Understanding the trading exercise itself is easy. Understanding how to use the exercise to change your beliefs is another matter entirely. If you do the exercise without understanding the concepts presented in this chapter and the next, you will not achieve the desired results. It is also important that you not take...
As with any auction, be careful to not bid too much Don't overpay for a property. Always remember that your profits are made when you buy. Keep that in the back of your mind at all times, in all situations. Auctions sound like a great way to get a good deal, but they might not necessarily be. For example, suppose you're interested in a property at an auction that has a starting price of 200,000. The same exact house down the street is for sale for 225,000. The auctioned property has a lot more activity in terms of prospective buyers because it's 25,000 cheaper than the property that's for sale for 225,000. But in the end, you might get a better deal from the owner selling the house than you would get at the auction because the hubbub over the lower price might actually cause the price to go up. The 200,000 house might end up costing 250,000 or even 300,000, while the same house down the street can be bought directly from the owner with time to thoroughly inspect what is being offered.
Ideally, you should keep notes on your strategy in a stock trading log. That way, you are making the notation at the time of the transaction, when the strategy is still fresh in your mind. The notation should briefly mention how the trade fit into the specific strategy and possibly the overall plan you have prepared.
Overtrading is a common mistake many traders make resulting in bad results and mental exhaustion. Set your times and be disciplined enough to trade only between those times. Rest and relaxation is and extremely important part of trading. It allows you to clear your mind, focus, reload your energy levels and attack the market again.
I'm a discretionary trader, Chris points out. This means that I have certain trade rules, which provide me with a trade setup, but I decide on a, let's call it gut feeling whether I take the trade or not. I have tried a few times already to build a successful mechanical trading system, but I was never able to boil my trade rules down to a mechanical system that I could trust enough to trade. On the other hand I have accepted that my subconscious mind is a better computer than my mechanical skills will ever be. Maybe if I tried my hands at neural nets, I could come up with a working mechanical trade system, but then I would not understand the rules any longer and that means I would not trust it enough to trade it. The subconscious mind will not give clear instructions it communicates through feelings. You need to learn to listen to them, if you want to use its power. But if you do, it can be a nearly unlimited resource you shouldn't ignore. To teach or program your subconscious mind...
One thing you should do is establish a reward-to-risk ratio below which you will not enter a trade. I talked about this in detail in Chapter 10 so I just want to refresh it in your mind now, as it is a crucial step in establishing your risk parameters. If you are making a proper money management plan you need to work on establishing a level that you find acceptable to make a trade at. At the very least you need to know what the risk is and what the potential gain is and make sure the reward is greater than the risk You should also take into account the chance of the trade working. Though I look for a 3 1 ratio as a minimum, I will make a trade at a 2 1 ratio if the setup is a particularly strong.
Writing the Globetrader blog I maintain to this day has made me accountable. I started the blog because I hoped that by sharing my approach to the markets, older, wiser traders would read it and question me or point me in a different direction by commenting on my ideas. Fortunately for me some of the comments I received proved invaluable and are now an integral part of my trading system. You don't need to write a public blog, but writing about your thoughts in a trade, how you see the markets, or what constitutes a trade setup structures your approach to the markets. Right now I'm at a point in my development as a trader where I try to dissect that gut feeling I wrote about earlier, so I can consciously see why my subconscious mind just gave me a clear Go ahead and take that trade signal. Or why it just questioned an otherwise wonderful looking signal and is proven right a minute later. By writing about these trade setups, I can relive the feelings I had when the trade opportunity...
To track the range, start the range total off at zero. Then, add the current session's actual range to the range total, and do so every day. At the same time, increment the of days by one, again starting at zero. By clicking on empty space in the spreadsheet, the average daily range will be calculated for you. Nowhere else is this average available. It is important to know how much a tradable breaths on average so that you can get your mind around the possible range for the current session. The Canadian dollar breaths 33 ticks on average per day, at US 10 per tick.
This overall, four-point plan is relevant to both traders and long-term investors. The principal difference will be the amount of time between progress reviews. Obviously an active trader, in the market on a daily or even intraday basis will need to review his progress on a much more frequent basis than someone who makes transactions as infrequently as three or four times a year. Even on the latter schedule, it is important not only to review the progress you have made but also to monitor any major economic, financial, or technical changes that may have occurred. It is easy to slip into complacency by getting into the habit of closing your mind to what goes on in the markets.
To be able to trust your warrior skill and intuition, you must first come to understand the nature of trusting and through understanding, allow your trusting beliefs to naturally evolve into faith. To have beliefs formed within your psyche, which you can trust and have faith in, you must also patiently practise your trading system until it is firmly committed to your subconscious mind where it will be transformed into unconscious competency. This is one of the most common and destructive forces that a trader must face. It is intensive and short term and is a block to action. As a trader, you may need to quickly close your position or even open a position to offensively gauge the market. In order to clear your mind of the debilitating fear it would be necessary to refocus your attention to the present moment in order to initiate the tactical action required.
Here is an exercise that will help you learn specifically how to develop and use self-discipline in your life. The purpose of this exercise is to help you learn how to use your mind in different ways. You'll be training your mind to stay positively focused on what you consciously want. You will also learn how to gauge internal resistance from belief systems, and how to build mental resources for taking conscious control of your life.
Don't buy if the property doesn't feel right. Take your time when you are in escrow to be certain this is the right investment for you and that it all makes sense. Better to change your mind before you purchase the property than after, when you are knee-deep in large expenses.
Phase 1 Denial of loss - Some traders have acted as if they have not lost a significant tranche of their trading account. Losses must be properly accounted for or reality will manifest in your mind as anger. Step 3 Exercises for the spirit - For the spirit, continue to walk peacefully but steadily, your mind still feels specific thought or intent, and allow the intuitive mind to fill your consciousness and psyche. This often renders messages and lessons of a much higher order, and you will experience a mindless enjoyment of a feeling of faith that all things, including loss and fear, occur for the higher good. By this time, no more than 15-30 minutes, you can be back at the start of your Misogi walk and back to your old self. You will feel refreshed, re-centred, and reasonably ready to re-engage the market when the opportunity again presents itself.
Relaxed trading needs confidence, not just at the conscious level (that is the easy part). But, as 75 of trading is a psychological affair that can only be mastered if your subconscious mind is also satisfied that you have a valid trading methodology. To be a competent analyst satisfying your mind at a conscious level is sufficient, but to be a truly competent trader it is your subconscious mind that must be totally satisfied. How can we attempt to do this
In reality, you do not select the property you are going to buy, but instead you select property you would like to own. The time between wanting to own it and actually owning it has yet to come. It is highly possible that once you begin negotiating to buy, you will change your mind about the property in the first place. Price and terms the seller is willing to take can be the deciding factors. Or, as you continue to progress in the selection process you might start negotiating on one parcel of land or one building only to find another which suits your goals better than the first. In that event, simply break off negotiations and go on to the second property.
You have progressed well along in the buying or selling process if you have a contract. As a buyer, you haven't made up your mind sufficiently unless you are at that stage, and as a seller, nothing happens until there is an offer that can generate a contract. On to the next stage.
Once you have a general overview of the market, you can begin planning your trading responses to a number of different scenarios that may take place during the day. Not only does this exercise your mind, but asking yourself what will happen if the Euro breaches 1.3560 or what will be the market reaction to a weak retail sales number also helps make your trading reaction to these events automatic.
To achieve your goals, you need to internalize them and keep them foremost in your mind at all times. What is right and proper for the position trader or for the short-term trader is not necessarily good for the futures trader. If you find yourself wanting to ride profits or losses overnight, you
Buffett is telling us that he does not need the market's prices to validate Berkshire's common stock investments. The same holds true for individual investors. You know you have approached Buffett's level when your attention turns to the stock market and the only question on your mind is Has anybody done anything foolish lately that will give me an opportunity to buy a good business at a great price
As you drive through downtown or cruise around your neighborhood, every commercial property you whiz by is managed by the owner or a third party, called a professional management company. Apartment complexes, office buildings, shopping malls, shopping centers, ministorage centers, warehouses, and mobile home parks must be managed in some fashion. Open your mind to the possibilities for yourself.
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