As I write this, it’s March 28th 2022…there is war in the Ukraine…the stock market is up and gold and silver are down…which is the opposite
of what should be happening. The point is to just follow price action and volume…don’t have an opinion…look what is actually happening right in front of you. Technical analysis and using a chart for a trader is like looking at an x-ray or ultrasound…it shows us what is really going on…then we add market psychology so we can understand the behaviour of the market because behaviour never lies…what are they actually doing? I would add one more element to your trading and that is mindfulness. Sounds a little woo hoo…I know…but it will help you immensely. It’s not so easy to develop mindfulness or a higher consciousness but I highly recommend that you do. Trading is all about probabilities…risk vs reward…technical analysis is the first skill…trading psychology is the second skill and where most traders stop their learning…but if you really want to elevate your trading and money making capabilities you need to add mindfulness.
What does that mean? If you have done your homework and are ready to put on a trade you might find a little voice in the back of your head saying things like…what if I’m wrong?…what if I lose money…what if the trade goes against me? You need to become mindful of your trade. You should not have any hesitancy on pulling the trigger on that trade. But you did…why? You listened to something in your head…a belief from somewhere that you might be wrong. After all, trading is a zero sum game right? Someone wins and someone loses on this trade. You thought you were right and someone on the other side of the trade thinks they are right. If you listen to this little bit of doubt in your head, you do not have the confidence to make this trade. Why are you not sure 100% that you are correct? You are not trusting your decision…and that is a belief system that you need to work on…where did it come from?
You used technical analysis…you read the market psychology of the day…you have a strategy and system that works for you…you used money management with risk vs reward…you have a hard stop or a mental stop based on where you would exit in case the trade goes against you…and you still had a voice pop up that held you back from placing the trade or made you think twice…that’s mindfulness. You aligned everything to make a successful trade…why think twice about it? You need to listen to that voice that showed you that all systems were go…that’s your higher self talking…you need to tune into it…listen to it…that is what you need to work on…being confident not doubtful…in everything you do, not just trading. In many ways trading is a metaphor for what happens in life…you need to have a plan and work your plan…no doubts…confidence and positive energy. We’ll talk about this more in other blogs. In the meantime, watch your thoughts…question your beliefs about the markets…build your skill levels…and work on your mindfulness…think positively, no negative thoughts allowed. Until next time…Richard
