Category Archives for "Trading Psychology"

The Forex Trading Psychology Archives – Mind Muscles for Traders Edge

Can you imagine your trading success?

Are you able to visualize your success as a trader?

If you can’t imagine your success as a trader, fully, completely and with joy, success is difficult to achieve.

Having worked with dozens of traders as a coach and hundreds of traders in my courses, one of the first things I ask the traders to do is to describe themselves as successful traders. Many are unable to imagine this state at all. The response to the task is sometimes confusion, sometimes withdrawal, sometimes sadness and sometimes diversion. This wall can be created from our core identity, our belief system and patterns of behaviors that, over time, do not support this vision.

A famous quote from “A Return to Love” by Marianne Williamson (often misattributed)  is one that rings true for many of my clients.

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, ‘Who am I to be brilliant, gorgeous, talented, fabulous?’ Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.”

To see our own light and power can conflict with early beliefs we established to protect ourselves. These beliefs had the positive intent to create security at a time when we didn’t have many options.

Now when I see a trader self-sabotage, and I ask them to visualize their success, it becomes easier to see the barriers that they have erected for their own safety, but no longer serve them.

So, this assignment I am about to give is important. The more you feel you don’t want to do it, probably the more important it is for you TO do it.

Create a mock brokerage statement one year from now from the state of being the success you want. It should be detailed. Additionally, create a more detailed of how your success looks.

  1. How many trades you made
  2. Win/loss ratios
  3. Biggest winner/loser
  4. Maximum risk taken
  5. Days with no trades
  6. Other criteria that are important
  7. P&L daily/weekly/monthly average
  8. Number of setups missed
  9. Number of setups taken
  10. Number of “off strategy trades”
  11. Additional unique metrics that measure your success

Remember, this is from the state of being a successful trader. This isn’t magical “manifesting” where you all your trades are winners. This is reality. What will your numbers look like given who you are, how you trade and how the markets can screw with you?

Next, imagine what this is like. How does this change your life? Write down the DETAILS of how becoming a master trader with consistent profits impacts you, your family, friends and community. Do you move? What do you buy?

Most importantly, how does it FEEL?

Now, look at these same number that are from your recent past. What needs to change?

OK, now you are able to vision the future, see the details and start to make specific changes that serve you better.

 

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