When you look at the chart about to take a trade, you are still hesitating, still unsure whether this is the right one. You are still uncertain about pulling the trigger.
Remember – it will always be like this!
No matter how much you trade, this feeling of uncertainty for the outcome of any one trade is not only to be expected, but to be desired. This is the feeling that tells you – you perceive the Market correctly.
Recognize the uncertainty, accept it with a smile. The nature of trading lies in this everlasting uncertainty, never being sure about the outcome of any given trade. Having accepted the uncertainty – pull the trigger, take the trade.
If you already have a solid system, then over the next 20 trades you will turn a profit, of which you can be certain. If you are still in the process of fine-tuning your system, it is only possible to fine-tune through placing these trades amidst all the uncertainty the Market throws at you.
Be comfortable with ambiguity. Take the fear out of equation by accepting that losses are needed to turn a profit, by accepting the uncertainty as the core part of the game. You are only afraid of something you try to avoid. Fear dissipates as soon as you embrace that which you are afraid of.
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.
- Like I am wasting time
- Afraid of losing the money
- Afraid of looking stupid when I open a “wrong” trade
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?
- 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
- 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.
The Market can do nothing to hurt you, nothing can cause any damage to your reality, so why is it that we find it hard to just relax? How much easier our job would be if we would follow the Market, instead of following our thoughts about the Market?
The reality of the Market can never do anything that would cause you stress. Only your interpretation of the Market – your thoughts about it – cause emotions and prevent you from being detached.
Yes, it is important to have a trading system – a framework inside of which you view the Market. A trading system will cause you to interpret Market’s actions, so it must be constructed in a way that avoids all inner conflict. However, if you are unaware of your thinking, even the best trading system will fail because you will not be able to follow it precisely. You will never notice when faulty thinking enters your mind and causes you to choose incorrect interpretation of the information Market puts in front of you.
Until we learn to just relax and listen to what’s going on inside, there is no point to try building a trading system. The conflict our unconscious mind tries to hide will be projected into our trading and ensure our failure.