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know that when measured over time, their profitability will be a reflection of the quality of their beliefs and virtues. |
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My goal in writing this book has been to state the cold, hard truths of trading. While I was at Lind-Waldock, the fundamental truth of trading was irrefutable. It is unavoidable to notice the irrefutable truths of trading when you talk to hundreds of different traders each month. Far fewer books discuss the psychological aspects of trading than discuss some technical aspect of the market. The vast majority of books focus on an "external" technical methodology. Far fewer adequately address the far more important "internal" character traits that successful trading demands. If you get nothing else from this book, get this: If the great majority of individuals are doing what you anticipate doing, and they are getting results that you want to avoid, then by God do not do what they did! |
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Every chapter of this book is designed to get you to understand the key beliefs all successful traders depend upon. Everything discussed is under your direct control, for you to gain mastery of. All it takes is a willingness on your part to decide to accept responsibility for your trading performance. The most important concept to understand is that it is your existing beliefs that have brought you to where you are now. If where you want to go is someplace different, then you must come up with the beliefs that will let you accomplish that goal. Before you can come up with these new beliefs, you will have to make a decision. You must decide to discard or modify old beliefs and obtain some new, enabling beliefs. |
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In order for you to take that step, you must first clarify what your present beliefs are. When you know what beliefs you are currently using, you will be able to determine if they are helping or preventing you from becoming a better trader. You will have to decide if they are based upon a virtue or a vice. All great traders have a solid grasp of their values and beliefs. They walk their talk, because they have a deep inner power. People have power when they congruently live by their virtues and beliefs. The power of successful traders to consistently earn profits is based on their ability to consistently increase their virtues and diminish their vices. |
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For many of these successful traders, a significant event that created immense emotional stress forced them to decide exactly what beliefs and virtues they were going to live and die by. When they made the decision on what their new beliefs would be, they also made a decision to consistently apply them. This decision meant that no matter what, even if it brought them pain, they would not waver in applying their new beliefs. |
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Most successful traders realize that it is not the price movement of the market that is controlling their profitability but the way they perceive and |
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