by Adrienne Toghraie, Trader’s Coach

There has been a lot of talk about how the lack of good communication is a major problem in our politics and in our lives. While we over communicate in the area of blogs, twitters and tweaks, face-to-face communication is becoming a thing of the past.

In face-to-face communication people have to confront problems where they do not necessarily have the answers, do not want to face the truth about what is happening, or by answering the question it will lead to a larger problem where there are more difficult questions to answer. Perhaps the present day models of how people communicate have an affect on how we communicate with ourselves.

Let’s look at the importance of how a trader’s communication with himself can make the difference between success and failure.

 Thoughts influencing action

While we do not think about how thoughts affect action on a regular basis, we think thoughts constantly. Very often those thoughts are repetitious and lead to taking unintended or undesired action. Thoughts such as:

  • If I am wrong, I will have to answer to my spouse

  • If I get in too soon or too late, I will miss my best opportunity

  • What makes me think that I really know what I am doing?

  • The last time it worked when I broke my rules

 Change the conversation

Most of us monitor the conversation we put out to the world because we have experienced the consequences of not filtering our thoughts. If we do this for others, we should also consider doing it for ourselves in order to have a better outcome.

 Here is an example of how you might consider speaking to yourself:

“I have improved on my technical skills and have worked on my psychology to get a better outcome. With my continued education, I should expect and enjoy better results.”

“I am a good trader who makes good choices because I follow my predetermined strategy. I learn from the actions I take every day.”

Or, more simply stated:

 “Every day in every way I am becoming a better trader and better person.”

 Change the conversation with others

If someone says to you that you are a gambler, you are throwing away money and that you will never be a trader, your answer should be:

“I appreciate your concern. I know that you have my best interest when you give me advice. Trading is a profession where people do earn a living when they incorporate the right principles and take the right action. I have a business plan where I intend to be risk adverse and take only calculated risk based on a tested strategy. If for some reason I do not earn money, I will do what is necessary to adjust my strategy, or take care of any self-sabotage before risking any more money.”

 Or, more simply stated:

 “I take calculated risk that has been tested to be profitable.”

Of course, you must consider that if you have not been producing profits, perhaps the well-meaning people in your life are justified in their comments to you.

Conclusion

Conversation has an influence on your taking action. When you take the time to listen to what is being said, you might realize that changing that conversation to be more positive would have a better influence on your producing higher profits in your trading.