I know a trader, let’s call him Leon. He day trades Futures. He has been actively trading for several years. His profits are erratic and undependable, often going dramatically up and down in the same session. When Leon is making money his confidence soars and he feels like he is a power trader. On the other hand, when he loses money, which is more times than he cares to admit, he feels like a failure, a loser and stupid. For quite some time Leon has wondered why he can’t be consistently successful, and why his drawdowns tend to be much larger than his profits. He wonders this even though he has no Business Trade Plan, doesn’t consistently document his trades and despite having numerous rules, tends to violate them regularly. Leon doesn’t have a clue and wonders why he can’t get different results even though he continues with this pattern of behavior. Leon is out of control and unless he changes he is headed for a financial ice-cold shower. Are you Leon?
If you want to change your behavior, you must first change your thinking and since much of your thinking is driven by your unconscious, you must become aware of your underlying self-sabotaging beliefs that drive thinking, emotions and behavior. Trading is arguably the most difficult business venture on the planet; why? Because we are talking about money, and with every tick while in a trade you are either gaining or losing money. But, it goes beyond that. Money is not only the cornerstone of our society, it is tied up in your identity. If you are winning it, you often feel powerful, competent, intelligent or “good looking” and if you are… Continue Reading
