One bright day in the middle of night two dead boys rose to fight. Back to back they faced each other, drew their swords and shot one another. A deaf policeman heard the noise, and saved the lives of the two dead boys. If you don’t believe this lie is true, ask the blind man, he saw it too…Author Unknown

One of the most important questions for a trader to ask everyday is “What do I believe that is not true?” And how do we know the truth? The markets tell us. It really is that simple, and yet so difficult for most to accept and practice on a daily basis.

Beliefs must be accessed regularly because at any given market moment, the trader is the composite of his or her beliefs. Fortunately (for some) and frustratingly (for others) beliefs about the markets are fungible and fluid. They can change from minute to minute; the successful trader is in the flexible flow with this– and changes accordingly.

Beliefs of Successful Traders

  1. The markets provide a constant stream of opportunities.
  2. If I miss an opportunity, another will come along.
  3. If my position is stopped out, the hypothesis that got me into the trade was incorrect.
  4. I take one trade at a time, and stay in the moment with it.
  5. I strive for excellence, not perfection.
  6. I maximize profits by losing small.
  7. I am not my trade.
  8. I take complete responsibility for my thoughts, feelings and actions in the markets.

Beliefs of Unsuccessful Traders

  1. I must be trading something all the time.
  2. If I lose on a trade, I feel angry, frustrated, sad or sick. If I win on a trade, I am a happy camper.
  3. If I don’t get on board with the hot tip of the day, I will miss out.
  4. The markets are out to get me.
  5. I am unwilling to take the stop-out, so I am turning this trade into an investment.
  6. If I just keep studying and looking and reading, I will find the magical formula/indicator/guru to lead me to riches.
  7. Everything has to be perfect for me to get into a trade
  8. If I win, I was skillful. If I lose, I was unlucky.

Diligent examination of beliefs and the courage to change them is an ongoing challenge that must be conquered if the trader is to move to higher levels of success.

All personal breakthroughs begin with a change in beliefs…Tony Robbins

Janice Dorn, M.D., Ph.D.

www.jtrader.us