Overcoming psychological issues in trading with the power of words may sound simple but it isn’t because it takes time and lots of practice. One of the biggest issues with traders is a pattern of negative thinking — after all, it’s hard to have a positive outlook when you are losing money.
While you may be skeptical regarding how powerful words can be then I suggest you go read my article on how the US Army uses the power of words to transform a soldier’s psychology.
The biggest obstacle in overcoming psychological issues in trading is your thoughts. Our brain generates over 50,000 thoughts a day. Monitoring all those thoughts is a huge task. However, there is an easier way to start.
Overcoming Psychological Issues in Trading with the Powerful Statements
Instead of monitoring all the thoughts that literally pop up, rewrite the Soldier’s Creed for your own goals. Make sure you keep the power words (I am, I will) as they have a direct impact on the statement (more about that later).
I am a winning trader.
I will never accept defeat.
I am fearless.
I will never lose faith in my indicators or trade setups.
I am disciplined and mentally tough.
I am a calm and efficient trader.
I execute trades with precision.
I always maintain my mental discipline.
I accept the profits that the markets are giving.
I am a professional trader.
I am a winning trader.
Notice the power words are still intact. Only the “expectation” has changed. These are the REQUESTS. Now comes the hard part.
Write these down and post them in places that you are likely to see them everyday. Repeat them before getting out of bed (at least twice). Repeat them at night before going to bed. Visualize yourself being a winning trader. Visualize profits going into your account. Visualize calmness, fearless, and being a professional. (This is known as the EXPECTATION stage.)
If you catch your mind drifting into negative territory, reign it back by repeating these requests. After a negative trade, immediately start repeating your requests. Meditate using these statements.
Do this for a minimum of 90 days (yes 63 is the average it takes to change but that is with total immersion). Even if you are sick, on Saturday, Sunday, during vacations, and holidays. Don’t worry over the how, why, or what. Instead focus on memorizing, requesting, and expecting these things to happen.
If you feel anxious, fearful, or “out of sync” with the markets, start repeating the statements. You are changing your mindset and it takes a lot of practice.
Sometimes the progression is fast, sometimes slow. Whatever it is stick with it for the full ninety days. You should begin to see small changes (sometimes big changes) but again stick with it. Our expectations will be realized as goals.