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They can very clearly define their behavior because of their internal values, beliefs, and rules. |
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Now am I saying that successful traders never get upset? Hardly. They do get upset. However, they have the ability to represent being upset in a way that strengthens their abilities, beliefs, and virtues. Upon experiencing a loss (or a series of losses) that causes their perceptions to become destabilized, successful traders will often close out their positions. They will then do something that allows them to put some time between that loss and the next trading decision. By allowing some time to elapse, they can question the internal representation that their mind is currently experiencing. By asking intelligent questions about why their perceptions became destabilized, they are able to make better, more empowering distinctions. |
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Novice traders are tempted to avoid thinking about the market when they become upset. Professional traders know that whenever they want to avoid thinking about the market, it is the exact time to begin questioning their perceptions of the market. Excellent traders know that they cannot let losing trades bother them emotionally. When they recognize that they are on a losing streak, they trim down their activity and wait it out. Professional traders believe that attempting to trade with the same number of contracts or with the same frequency during a losing streak is emotionally exhausting. Their goal is to start seeing black ink on a consistent basis, before scaling back up to their regular number of contracts or frequency of trading. Outstanding traders are able to acknowledge that the losing trade occurred in the past, allowing them to make new distinctions so they may refine their methodology. By placing no emotional energy into a losing trade, they are able to more accurately perceive the losing trade. Successful traders are always focused on the instant of time they are trading in, and what they are going to do to profit from the price action. While they are actually trading, they forget what happened in the past until the trading day is overto do otherwise is to change focus from the present to the past. They know that focusing on the past while trading only guarantees future losses. |
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So how do novice traders change their beliefs about a loss? How do they get rid of the anger, pain, and resentment they feel toward the market? Once again, the way it is done is by realizing that every time these negative emotions come up they must be placed into a constructive context. Half the battle is realizing that the negative beliefs must change. The other half of the battle is to take the time and energy to change them. By using the techniques already mentioned, you will be able to change old beliefs and create new beliefs that prevent you from using your old beliefs. Do you know what your beliefs about the market are? |
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