Special thanks to Adrienne Toghraie on the guest post below:
How many times have you heard yourself say, “If this happens, this will follow”? While stating and following a declaration can, in many cases, be a good thing, it can also be the very thing that siphons your ability to become a trader.
Declarations such as:
- I will stop trading when I lose a certain amount of money
- I will stop trading when I have a certain amount of losses in a row
- I will give trading up if I cannot make a certain amount of profit
- If my trading strategy does not produce the trades, the profits and/or any other expectations I have for it, I will find another strategy
Following up on these declarations could be what is necessary for you to save yourself from greater loses and a profession that is not right for you. This follow-up will put you in the category of those who have tried and failed in becoming a professional trader.
Ask yourself, if declarations for negative outcomes are a pattern in your life to:
- Protect you from doing damage to yourself and others
- Keep you from losing face
- Keep you in control
- Hold you back from the outcome you really want
Patterns of negative declarations
Bill recalled to me that when he was a young boy his father would say to him. “Okay, you can try this, but if you are not successful, then you must give it up.” This is where it started that Bill’s biggest dreams and goals would not be realized.
Bill did manage to become a college graduate in engineering, get married and have 2 healthy sons. This life would seem like a success story had it not been for the fact that Bill wanted to study economics and finance. He wanted to marry the girl of his dreams, but quit after she said she was busy on the day he asked her for a date.
Bill was introduced to trading and knew that it was what he wanted to do. His wife gave her support when he showed her his plan. In his plan it stated that he would give up trading if he lost five thousand dollars and continued with other declarative statements that were sure to lead him to failure. He has become a simulation trader.
While declarations can keep someone from their dreams and goals, they can be the very thing that will make dreams and goals come true or protect you from going in the wrong direction. Declarations such as:
- Those that help you to change course
- Those that lead you to a progression of each next positive step towards your goals
- Those that assist you to change for the good of all concerned
- When it is the next logical step to take to accomplish a goal
Declaring to be a top trader
For Cliff becoming a top trader was what he knew and wanted to do. Failure was not an option. In his business plan he made declarations such as:
- After my plan and testing are complete, I will simulate trading and will only trade when I have proved to myself that my strategy can earn a profit.
- When I trade in real time, I will only continue if I am able to follow my rules. If I cannot, I will get help.
- When my friends and family let me know that I am stressed out, I will take some time off.
Cliff is enjoying his life as a professional trader.
It is important that the declarations that you make to yourself and the world are ones that will serve to lead you to your goals and dreams. Remember that you are the one who makes the choice in what is being stated and promised. Choose your declarations wisely.
To learn more from Adrienne about the pyschology of trading and to receive Adrienne's free weekly newsletter, please go to: Trading on Target
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Risk Disclaimer: Past performance is not indicative of future results. Futures trading involves substantial financial risk. Views of guest commentators do not represent those of TradingPub.com. Article intended for educational purposes only and not meant in anyway as a solicitation to buy or sell certain securities. Please consult your personal financial adviser before using this information for your own trading purposes.