Extract from my upcoming book – The Truth About Trading….
This is a very important topic, I’ve written a lot in this book so
far about beliefs, and we trade our beliefs in the market, and
how these impact our trading.
But not just our trading, wealth building as well and all other
areas of life.
I’ve done a lot of work with a lot of traders in unpacking those beliefs, and I’ve seen first-hand the power of doing that and the impact it has on making your trading phenomenally successful.
Not marginally, but phenomenally.
The different is chalk and cheese.
But a lot of guys have said to me – ‘I don’t know what my beliefs are…’
That’s a common thing.
A lot of people say they don’t know what they believe.
Their beliefs are fine, they’ve got no beliefs, and so on.
There’s 101 stories about beliefs.
Well, there’s many ways in which it’s very easy to find out what your beliefs are.
I want to talk about a couple of them, this is a big and complex topic, so I will cover some basics here and will be covering in more detail in my next book.
There are beliefs you have about the market, and you can identify them with your language.
That’s the first one.
The second one is you can identify your beliefs not just by the language you use, but by the excuses you make as well.
And the words you use for those excuses.
They are two clear ways in which you can start understanding the beliefs that you hold about trading.
Now, there are a minimum of three different types of
beliefs in which you bring to trading.
It is important to understand these and work with them – and master your relationship with them..
The first one, are the beliefs you have about the strategy you trade.
By default, there are beliefs in the strategy. For example, in the Tribe of Traders, we have a strategy that assumes that price is going to continue the trending, once it bounces off the 20 EMA. For POGO, it’s the 20 EMA. For BUGSY, it’s the 80 EMA.
That belief, though, has been thoroughly and totally back tested, and has an average 83% likelihood that it will do that, that’s a belief.
By the very nature of a strategy that you’re trading, no matter what strategy it is, there’s a set of beliefs.
But even in that strategy that you’re trading, there are sub beliefs that you bring.
For example, within POGO, for example, we require two cycles that price action creates on the chart – in the direction of the trend, and then price to interact with the 20 EMA, and after that price to continue in the direction of that trend.
But then the beliefs we project onto that, into those cycles, some people say, ‘Well that’s not a cycle. This is a cycle to me’.
There’s different beliefs about different types of cycles.
Be that as it may, there’s enough leeway in that particular strategy to cover for a wide variety of beliefs associated with quality of cycles, types of cycles, and so on.
But there’s a set of beliefs with the strategy that you’re trading.
Tribe of Traders strategies have been thoroughly back tested, has an average of 83% success rate, therefore likelihood or probability that it will do what we belief is high!
Then there are two other sets of beliefs we bring to our trading.
Bearing in mind, this is not just to trading.
This is also to wealth building and all other areas of our life, relationships, work, health, social, you name it.
The first one is so when you go to trade – are you trade ready or are you not?
What is your state as you go into trade?
What’s going on in your life as you go into trade?
Have you got more month at the end than money?
Have you just had an argument with a loved one?
Are you struggling with children?
Are they not passing exams?
Are you worrying about grandchildren?
Whatever is going on in that moment will impact your beliefs on the market, on trading, and your relationship with trading. That’s the one.
The second one is way more fundamental and deep seated, which is around your self-worth, essentially, which has a direct impact on your net worth.
There’s a direct correlation between the level of your self-worth and the level of your net worth. 100%.
Whereas your self-worth is spirit and soul, the net worth is a physical manifestation of what your self-worth is.
So what is your self-worth?
Where is that?
What is at?
What’s driving it?
What’s holding it back?
What’s compressing it?
What’s suppressing it?
But also, what is your relationship with money?
What are your thoughts about money?
What are your thoughts about wealth?
What’s your relationship with money and what’s your relationship with wealth?
There’s another set of beliefs that you’re bringing to the market when you’re trading.
So that’s at least three!
Accept the fact that trading is largely mindset, and start addressing it from that angle rather than just the trading.
You will have a transformational experience, not just in trading, but in all areas of your life.
That’s why trading is the gift that keeps on giving.
But, let’s leave that aside and focus on how we identify what the beliefs are that we have or carry around our trading.
And that is language.
The power of language.
I just don’t understand why it is not considered such an important part of our life.
The words we use, how we use them, when we use them.
Not just the verbal words and the energy that they contain, but their energy behind it, the emotions behind it.
And also, the language we use in our mind.
Language is the number one giveaway, what you think about, what you feel about, and what you actually say and when you say it.
That is the ultimate giveaway to what your beliefs are. 100%.
In any one of those three examples, as I said, there are a minimum of three ways in which we bring beliefs to the market or to wealth building, language will be one of the biggest indicators to what those beliefs are.
Just ask yourself, the language that you’re using, the words you’re using, is it supportive? Is it not supportive?
Where does it come from?
What’s driving it?
That is the most important work that you can be doing to powerfully impact your trading right now.
You could turn your trading around 100% without any doubt in my mind once you start working on that.
Start getting clarity on what the language that you’re using, where it comes from, does it support you does it not support you, what is the energy behind it.
What is the feeling behind the words?
How often do you say something…
Like in a relationship, you say something to your partner and your partner reacts to it. And you say, ‘Well, I didn’t mean it like that. It’s not what I meant.’
But yes, it is what you meant.
It’s not what you really wanted to say, but it is what you meant.
Have the courage to face up to the fact that your language is a very clear indicator of what your beliefs are, and look at the different ways in which beliefs are impacting your trading.
Start being 100% honest with yourself…
Knowing that being that honest with yourself is possibly the hardest thing you can do.
Have the courage to stand up to what is revealed to yourself, after all what is the worst that could happen doing this?
What is the worst that can happen?
Because the best that can happen is your trading transforms 100%, and you will reach your target.
This is the work that I’m doing with so many guys in the Tribe of Traders, and I can see the difference.
I have a very hands-on relationship with our traders in the Tribe of Traders, and I can see those guys that are embracing the power of their beliefs that drive their thoughts, drive their actions, which also create their results.
Those guys are thriving.
Consistently getting successful weeks and months.
Do you want to be one of them?
Because you can.
Because the only thing that’s stopping is accepting the fact that it’s your beliefs that are holding you back and your language is a very clear indicator of what those beliefs are.
So get clarity on your language to understand your beliefs, find out where those beliefs come from.
Are they supportive or not?
And you have the choice, whether you want to hold onto them or not.
Because 9 times out of 10, the beliefs that you’re carrying that are not supportive are not actually yours.
They’re something you picked up at some point in your life going back, and they’re no longer relevant today, but you’re still carrying them with you today.
And they are directly impacting, not just your trading, but your wealth building in general as well as your life.
Unlock that. Get clarity on your language.
Dealing with your language and assessing what’s the driving force behind it, and you will have freedom….