Beliefs That Bank: Trade with Your Mind

How Mindset Can Be Your Secret Trading Weapon

Here’s something to consider before the week ahead…
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Dr. Van K Tharp, Trading Psychologist and author of multiple trading books said this:
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​“Your beliefs become your reality. To change your reality as a trader, first change your beliefs.”
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​The concept here is that your conscious or subconscious beliefs will shape your perceptions, decisions, and ultimately trading performance.
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So what are you supposed to do?
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Stand in front of a mirror and tell yourself “I’m a great trader” when your P&L is clearly giving evidence to the contrary?
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Good luck with that!
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A far better way to build beliefs is to create habits and actions that align with the belief you are trying to build.
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For example:
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#1 Belief:
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​“I am becoming a disciplined trader”
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​Actions:

  1. Journaling
  2. Logging mistakes
  3. Slowly improving discipline month-to-month

#2 Belief:
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​“I am committed to trading excellence”
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​Actions:

  1. Solid trade review process
  2. Pre-market prep
  3. Time for study and analysis

These aren’t lies you’re telling yourself.
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These are thoughts you can turn into beliefs with your actions.
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​When your thoughts and actions combine that’s when powerful things happen.
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​You think something, and then prove it to be true with your actions…
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Do this enough times and it becomes a belief.
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And beliefs, according to our pal Dr. Tharp, makes sh*t happen…
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​“Your beliefs become your reality. To change your reality as a trader, first change your beliefs.”
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​Perhaps something to work on this week…