In the zone - thinking like a trader + Trading excercise Flashcards
What’s the simplest description of trading?
It’s pattern recognition in numbers
Why is trading so hard for most?
intellect vs other reasons perhaps?
It has nothing to do with intellect, it’s because you need to accept the five fundamental truths and have these beliefs have loads of energy in them - without a shadow of a doubt
Operating in the unknown is hard, and the more you think / more analysis you do, the harder it can be
Why is trading so hard for most?
intellect vs other reasons perhaps?
It has nothing to do with intellect, it’s because you need to accept the five fundamental truths and have these beliefs have loads of energy in them - without a shadow of a doubt
Operating in the unknown is hard, and the more you think / more analysis you do, the harder it can be
Exercise that will integrate truths about the market at a functional level in your mental environment
Three stages of traders development
1st - The mechanical stage
2nd - subjective stage
3rd - intuitive stage
1st - The mechanical stage
a - build self trust necessary to operate in an unlimited environment
b - learn to flawlessly execute a trading system
c - Train mind to think in probabilities (the five fundamental truths)
d - create strong unshakable belief in your consistency as a trader
2nd - Subjective Stage
a - use whatever you have learned about the market movements to do whatever it is you want to do (can use anything, moving averages for example)
3rd - Intuitive Stage
a - This is the trading black belt, the most developed stage, we cannot ‘try to be intuitive” it is spontaneous - many good traders have good intuition, but their rationale mind blocks action
How to integrate trading principles and 5 truths…. (see daily journal on GoodNnotes in iPad for lists)
Need to create a set of experiences that are consistent with them - trade.
- Objectively see edge, identify it without expectations - FREE FROM PAIN OR EUPHORIA BEING ANYWHERE IN SUBCONSCIOUS when looking at market information (these block and contradict intuition and objectivity of other traders)
- NO MOMENT ONLY - this market moment is unique
- must think from the marketers perspective - not our own
how to be objective
think from the markets perspective, not from our own
When doing Ironman, I almost sent selfie half way through to celebrate to Lara, but I stopped, I know I’d pay for that early celebration with reduced will power later (the marshmallow test was passed in not sending the selfie)
In trading - what is the equivalent
Trading is for me, and so I can give Harry tips on when market might turn (Nils can assist)
Trading to impress friends and family and lecturing them about it isn’t the point and trips up traders as they’ll pay for this mindset later (like I would have paid for the selfie has I not passed the marshmallow test when doing the ironman)
