Last week, we looked at factors that can affect your success quotient as a trader.
This week, we would be progressing from where we left off and look at two pivotal points which can make or break your journey as a trader.
The idea is to implement these into your trading system and learn as you move ahead in the market.
Yearn for Self Discipline
To remain focused on your objectives, you need to redirect your thoughts and attention to your objectives.
So, when you attempt to inculcate self-discipline in your own self, you are basically attempting to create a new mental framework for yourself.
What you shall understand from this statement is the fact that self-discipline is not a trait that a chosen few are born with.
It is a skill that anyone and everyone need to learn.
Moreover, adopting this technique can be exceptionally helpful in transforming your own self and preparing your mental state to trade effectively and successfully.
You may be faced with a scenario where your objectives and goals may be contradicted with certain beliefs, which for this discussion, will be called contradicting beliefs.
To be able to achieve an alignment between your objectives and mental state, you will need to get rid of the negative and contradicting beliefs.
By the end of this process, you will come out as a person who believes in just the right things and is completely prepared to conquer his or her.
The absence of conflicting thoughts also ensures that there is no distraction from thoughts, rationalizations and mistakes.
The last thing that you need to pay heed to is the fact that it is possible to change beliefs in view of the fact that beliefs are a form of mental energy.
It isn’t possible to create or destroy energy, but what you can certainly do is that you can transform one form of energy to another.
This simple law of energy conservation from your junior school physics class comes into practice here.
When you deactivate one belief, you suck out all its energy and use this energy to energy another belief, which in turn becomes powerful enough to alter your perceptions, behaviours and interpretation.
Self-discipline will be required at any juncture of your trading career where you are facing contradicting thoughts.
This skill will help you integrate all the positive beliefs into the system in such a manner that they will start acting like a dominant and powerful part of your mental system.
Your consistent work in this direction shall get you to a point where the ‘right trading principles’ will become such an essential part of your existence that you will no longer require self-discipline or any other skill/technique to achieve consistency in your trading results.
It is important to state here that consistency isn’t synonymous with a few winning trades.
You don’t really need a skill to win a trade or a few consecutive trades for that matter.
You just need to make a guess and if the luck is on your side, you will be the winner.
Keeping this in mind, trading is no different from a coin tossing game.
Consistency, in the present context, is a state of mind that will not let you think in any way that can be detrimental to your trading success.
An important thing to note here is consistency will become a part of you.
So, you will not have to try for it and if you have to try for it, you haven’t achieved it yet.
Once you have identified all the positives and deactivated all the negatives, you have no other option but to think positively.
At this point in time, you will not need to try for positivity.
It will come naturally and effortlessly.
It is at this stage of a trader’s career that people mistake for self-discipline.
In fact, the truth of the matter is that you have learnt to work with a completely different set of beliefs, which are completely in alignment with what you wish to achieve.
Believe in Consistency
Achieving consistency in trading as an objective is a very abstract goal.
So, you will need to break it down into well-defined smaller goals.
Simply, you need to identify the step-by-step process that you will need to undertake to reach your goal.
Each step is a sub-goal for you.
Having the belief that you are a consistent winner is essential for you to gather within yourself the grit and zeal to work forward for the same.
However, the human mind does not believe in anything or change an existing belief until you give it a reason to do so.
You need to make these principles a part of your system at the most fundamental level to achieve consistent success in trading.
However, for this, you will need to expose your mind to experiences that are in line with these principles.
Although, trading is much more difficult and complex in nature, but the process and the underlying principles remain the same.
From the perspective of the market, every single moment of trading is completely different and holds no resemblance to any of the previous experiences.
So, you can never expect to know what will happen next or believe that you will be right in what you are expecting.
This is in contradiction with how your rational mind works.
Your rational mind relates and associates present situation with past experiences to derive interpretations and make decisions.
As and when, the market does not behave in the manner that you expect it to, the experience will be filled with pain and frustration.
Pain avoidance mechanisms that exist in our fundamental mental framework work to ensure that we do not face any pain as a result of the differences that may exist between what the market information has and what you are expecting it to have.
So, these pain avoidance mechanisms force you into a state of illusion.
You see only what you want to see and what is in line with what you believe.
In such a scenario, making common trading errors may be commoner than usual.
When you train yourself to think otherwise and not get into this state of illusion at all, you will make lesser mistakes.
With time, you will learn to trust yourself, which shall become a source of your self-confidence in the long run.
Self-confidence is capable of playing an instrumental role in making trade execution easier for you for the simple reason that you will no longer be hesitant to get into or out of a trade.
However, how you can get there still remains an unanswered question.
For this, you will need to think from the perspective of the market on a consistent basis.
Therefore, you need to undergo a mental transformation, which in turn requires you to refocus on what you want.
This requires a lot of self-discipline on your part.
If you have clarity in your objective, the conviction to succeed and the self-discipline to take yourself forward, you must be able to do your job nicely.
But, before anything else, you will need to make up your mind.
This is extremely essential in view of the fact that as part of your trading journey, you are going to face many conflicting forces.
Therefore, a clear and intense desire to make a change or initiate the process of transformation is a bare essential for any trader.