I do not understand the Market.
How do you feel when you believe this about yourself? Examine the following statements and see which ones cause the biggest emotional reaction – these are the ones you want to work on.
- Powerless
- Hopeless
- Stupid
- Like I am wasting time
- Frustrated
- Tired
- Angry
- Afraid of losing the money
- Afraid of looking stupid when I open a “wrong” trade
- Hesitated
Whatever you believe about yourself is what you are. So how do you think you would be feeling if this believe did not exist for you, if it would have completely disappeared?
- Free
- liberated
- Empowered
- Willing to pull the trigger on my trades
- Willing to explore the Market without resistance
Is it possible to understand the Market at all? Once again, the main question here is what do you believe “understanding” to be. Depending on how you define “understanding” it might be possible to understand the Market or it might be not.
What is understanding?
- Knowing where the Market will go
- Knowing why the price moves on the Market
OR - Knowing what the possible outcome of my trades could be
Consider which one is easier to understand about the Market. When you need to know where the Market will go, you are bound to be frustrated most of the time in your trading. If you simply need to know what could the outcome of your trades be, you will bring clarity to your trading.
If you really want to understand the Market in terms of knowing where it will go, why is that?
- Do you want to avoid losses?
- Do you want to prove that you are right?
- Do you want your trades to be ideal, absolutely perfect?
- Do you want to have confidence in your actions?
Remember, that each of the above questions must be broken down into aspects. Your belief system is extremely complicated and the answers are not likely to be found by scratching the surface.