Mental Trading
Energy is...
2.
3. 4. 5. 6. 7.
Law of Polarity
Everything has an equal and exact opposite ( Negative / Positive)
Law of Rhythm
Everything is moving in perfect rhythm and speed ( can you catch a wave)
Law of Relativity
Everything is relative Cause / Effect Do not always compare with others Action leads to Reaction
Law of Gender
Both male and female necessary for creation Giving / Taking
Mental Trading
All about you as the trader Relationship with the Universe Certain principles and laws of life that are eternal How you use your energy How you think Can you think in probabilities? Can you implement all these life principles into your trading ? Can you trade without fear and without trying to be right every time? Can you handle discipline? Can you forget the failures of the past ? and not stress about the future? Can you think and discipline yourself into a successful MASTER trader?
The quality of your life is directly related to the questions you ask yourself Anthony Robbins
Mental Trading
Universe and you are one Rules of Universe apply to you as well There are certain rules of life by which you will succeed Rules of life are also the rules of the market Daily psychology by which you live will become your trading psychology by which you will trade There are clear reasons for trading failures (trading habits) You Must trade with a positive expectancy You must have a purpose (much bigger than the markets and money) Your thoughts are everything You create your success and failure In the Thinking process, things can vibrate to you and away from you
and
The Secret
Your thoughts become things Your whole life is a manifestation of your thoughts (Lisa Nichols) Thoughts create feelings Thoughts and Feelings create your life To love yourself creates a new Dimension of YOU To NOT Love yourself push things away - relationship other and Universe
Believe
Positive expectancy
The Universe offers everything to everyone there is no partiality There is enough for everyone. If you believe it, you can see it, and if you can act from it, it will show up for you. And that is the Truth
Positive expectancy
Must feel good (and laugh) You have to love and honour yourself to feel good
Tell me, and I will forget. Show me, and I may remember. Involve me, and I will understand. Unknown
Mental Trading
Tonight we will discuss:
The human beings that we are our energy, mind, ego How we link with the Universe, Why we do things? How we function, think, analyze, trade Brain, mind, emotions, senses, actions, fears What drives us, and Emotional state changes
Plan of action, How do we change things Apply all to our trading ..... that isif we want to improve
Mental Trading
Your thoughts are everything No manual for the powerful main frame computer (brain) To change a business Change management and people Change trading - CHANGE TRADER Your trading is a business Profits and Overheads (Business expenses) (Loch Ness Monster) Plan for the business and the people (MAP for yourself) Keep book ( plan, monitor, accountable ) IF YOUR LIFE IS WORTH LIVING, IT IS WORTH RECORDING Anthony Robbins RECORD RECORD RECORD DIARISE DIARISE DIARISE
...and still you loose money... Then you are out of control Your emotions run your trading
Hendrik Lindeque
Highs and lows 17 Year Journey Started 1990 Science of personal development (SPD) -Napoleon Hill 1990 Think and Grow Rich -Anthony Robbins 1990 Personal Power II -Deepak Chopra -Glen McQuirk -Dr John Stanko -Debbie Ford Invest 1994 Warrants 1998 TASSA 1996 Futures/CFD/ST 2002 Forex 2004
2000 Dr David Paul ShareDirect Seminar on Options and Warrants, Peak Performance Trading, Alsi 40, Forex trading Introduction to Mark Douglas, Eckhart Tolle and Nassim Nicolas Taleb and other.
TRIBUTE: REFERENCES
1. Dr David Paul (ShareDirect) Warrants and Futures Forex trading Alsi 40 Trading Peak Performance Trading Peak Audio Presentation Simon Pateman Brown - Psychology of trading in advance warrant trading. Dr Van K Tharp International Institute of Trading Mastery
2.
3.
TRIBUTE: REFERENCES
4.
Mark Douglas
Trading in the Zone The Disciplined Trader
5 6
TRIBUTE: REFERENCES
7 8. Ari Kiev Trading in the Zone Debbie Ford Dark side of the light chasers Spiritual divorce Best year of your life Napoleon Hill Think and grow rich Unlimited success You can work your own miracles Positive action plan
9.
TRIBUTE: REFERENCES
10. Anthony Robbins Personal Power 2 Get the edge Awakening the giant within Notes from a friend John Kehoe Mind power A Vision of power and glory Money, Success and You Nassim Nicolas Taleb Fooled by randomness The Black Swan
11.
12.
TRIBUTE: REFERENCES
13. Deepak Chopra How to know God The deeper wound Namaste Newsletter Stephen R Covey The 7 habits of highly effective people The 8th Habit Living the 7 Habits Victor Frankl Man search for meaning. Glen McQuirk Map 4 Life
14.
15. 16.
TRIBUTE: REFERENCES
17. 18. 19. Neale Donald Walsh Conversations with God Mark Tier The winning investment habits of Warren Buffet and George Soros. Robert Kiyosaki Rich Dad Poor Dad Rich Dad Smart Kid Rich Dad Guide to investing Rich Dads prophecy Retire Young Retire Rich Donald Trump and Robert Kiyosaki Why we want you to be rich
TRIBUTE: REFERENCES
20. Dr Joe Vitale The Attractor Factor Zero Limits
Nicole Elliot Ichimoku Kinko Hyo Clouds Procter and Frost The Elliot Wave Dr Joseph Murphy The power of your subconscious mind
TRIBUTE: REFERENCES
24. 25. Canfield, Hansen & Hewitt The power of focus Peter Curruthers The business warriors Petes weekly Crash proof your business Coert Coetzee Let there be light of wealth creation Edward de Bono Lateral thinking Six thinking hats Six value medals The thinking course
26. 27.
TRIBUTE: REFERENCES
28. 29. 30. 31. 32. T. Harv Eker Secrets of the millionaire mind. Nick Williams The work we were born to do. Rabbi Benjamin Blech Taking Stock. Timothy Ferriss The 4 hour workweek. Charles P.Garcia - A message from Garcia.
TRIBUTE: REFERENCES
33. Dr Wayne W. Dreyer The power of intention Manifest your destiny 34. Jim Rohn Seven strategies for wealth and happiness. 35. Dr Ron Jensen Make a life not just a living. 36. Byrd Bassett The book of excellence. 37. Dr Spencer Johnson Who moved my cheese?
TRIBUTE: REFERENCES
38. John G. Miller QBQ : Question Behind the Question. 39. John Feltovi 101 Ways to boost your business performance. 40. Peter Cheales I was your customer. 41. Rob Marsh Business success. 42. Glen Suiter The new creativity. Quest for the high road The mind of a fox
TRIBUTE: REFERENCES
43. Dr Kobus Neethling Am I clever or am I stupid. 44. Julie Morgenstern Time management from the inside out. 45. Jack Milne The streetwise investor. 46. Dr Myles Munroe The spirit of leadership. 47. Brian Tracey 21 Secrets of self made millionaires
TRIBUTE: REFERENCES
48. 49. 50. 51. 52. Steven Silhiger The 10 day MBA Kenichi Ohmal The next global stage. Jim Millar Financial fitness: the easy way. Jay Abraham 9 Pillars to business growth. Robert Pardo Design, testing and optimisation of trading systems.
TRIBUTE: REFERENCES
53. 54. 55. 56. 57. 58. 59. Dr Williams G. Hill Think like a tycoon. Dennis Conner The art of winning Caryl Winner Present yourself with impact. Alberti and Emmons Start up, Speak out and Talkback. Ball and Asbury The Winning Way Dave Morgan My feeling for fauna. Alpesh B Patel The Mind of a Trader
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Background
?
Day work .mental cases...
THE BEGINNING
PELVIC ABNORMALITIES
OVARIAN STIMMULATION
4 cell embryo
8 cell embryo
PGD Pre-implantation genetic diagnosis Blastomere Isolation / Embryo Biopsy Single cell Diagnosis
PGD - FISH
( Fluorescent In Sito Hybridisation ) Single cell technique
16 cell embryo
Blastocyst
Energy
In the Universe In the Trader In the Markets
Quantum Physics: What creates the world? ENERGY Can never be created or destroyed, it always was, always has been, everything that ever existed always exits, its moving into form, through form and out of form.
Energy
Energy determines emotions Experience = energy flow with emotion = meaning
Meaning beliefs
Belief: Feeling of certainty about the meaning of something Beliefs shape of our future (Inner belief system) Beliefs define parameters(i.e. definitions) Definitions create boundaries Boundaries inhibits the flow of information Restrictive thinking is Negative thinking Extremely effective in the negative way
2.
3. 4. 5.
7.
8. 9. 10. 11.
14.
15.
Honouring yourself. To have the best year of your life Debbie Ford
Summary: The Challenge in life and trading
Psychology of trading
Mark Douglas: 80% Mental and 20% Methodology
Van K Tharp: 100% Psychology. Everything you use; technical analysis, computer programmes, trading plan, methodology has a psychological undertone and background.
To think differently
Psychological gap Gap is between understanding trader psychology and the psychology of the markets. If you can understand this GAP then you can transform that knowledge in to trading profit.
MENTAL TRADING
Desire - Learning - Plan - Inspired action(Personal Power) Discipline + Visualisation = Success Success: 8 Div: Spiritual, family&relationships, intellectual, physical, financial, social, career&business, rest&relaxation
It is impossible to fail as long as you learn something. For every disciplined effort there is a multiple reward. Jim Rohn
There is no such thing as failure, unless accepted as such by the human mind. Napoleon Hill
We are incomplete and lacking. We want success to complete us. Success as compensation We want success to get something We have to act on the world to make things happen Physical reality is all there is We are separate from the world around us
WHY DO WE DO THINGS?
Everything in life we do for one of two reasons:
Avoid pain OR Gain pleasure EMOTION
Inspiration
Desperation
What drives us ?
Emotions Feelings
STATE CHANGE
Everything human beings do, is merely an attempt to change the way they feel Anthony Robbins
16 MBTI types
The Goldberg Five Factor Model was developed for personality traits to determine personality tendencies By applying this model, individuals fall into certain personality dimensions
Big 5 Types
Neuroticism
Extraversion
Agreeableness
Conscientiousness
Openness to Experience
Life
Market
Quit if things are tough Quit to cut losses
To be decisive Take control and charge To dictate Stamp out uncertainty Want to be right all the time. Snatching profits
Flexible with ever changing information Listen / follow the market Do not control OK with uncertainty OK with risk OK to be wrong
How do we think?
THINKING PROCESS
Neuro-anatomy Neuro-physiology
Visual Pathways
Internal environment
Mental Thoughts Emotions Experiences Memories Associations Perceptions Beliefs Dreams Fears Intuition
Senses to brain
Impulse energy transfer by code preset pattern Mind is the pattern making system
Creates Recreates Organise Recognise
Mind of effectiveness
Effective communication and interrelation system Creative - very creative Definiteness of patterns (right/wrong)
Thinking:
Conventional Analytical Deliberate Creative Vertical Lateral Horizontal Parallel Positive Negative
BEWARE !!!!!!!!!
Thoughts become things.
You have the ability to think things into being.
You create your own universe as you go along (Winston Churchill) What we think about, will come about (Dr John Demartini)
Cant go back and experience the past Cant move forward and experience the future
The past doesnt exist anymore and the future doesnt exist yet What do exist are endless sequences of now moments in which we experience our lives (and that we can trade in)
Negative energy
Painful memories Restrictive Inhibiting Perceive it as threatening Fear: brain will do anything to avoid pain/fear Discomfort Dissatisfaction
Ego
Your business is with your Conscious
Mind
You can use conscious/rational mind to influence your subconscious mind to change
anything
Subconscious mind
(Windhoek lager/Pinotage/Jameson)
Accept all info true / false /positive and negative Bed of soil it absorbs any seed of good or bad
Subconscious mind
Never sleeps Control vital processes It has the answer to all your problems or challenges
If you have continues thoughts or voices: Discard the thoughts in your head for what they really are:
just noises
Subconscious mind
Mental home of your thoughts and beliefs..thus.
The EGO
The EGO
Mind: Looks for food / thought / identity and sense of self
EGO
Recognize the voices in your head for what they are
You are the one noticing the voices. The thinker should be aware of the voices,
Spacious Awareness
Spirit says
There is nothing to fear Connection with all Fullness
Already is now
No need for competition Look in! There is an abundance of all we need
Withholding
Attack and defend Fight and compete Must have by getting
Defend
Surrender
.. SUCHNESS
of the Moment
NO SELF, NO PROBLEM
Buddhist master
In The Now
Life unfolds with ease in the Now
You step out of the content of your mind Your thoughts do not abort your attention anymore There is spaciousness There is stillness You are greater and deeper than your thoughts
Fear
FEAR
Fear results from conditions that cause physical and emotional pain Stress Anxiety Confusion Disappointment Conflict between beliefs and reality Perceptual distortion so you build defenses Denial Justifications Rationalization In state of distortion not sharing reality with the markets Illusion hide from the possibility of disappointment
FEAR
Forced awareness Disparity: between mindset and market Leads to breakdown of mental defenses Go in a state of shock
Your fear will become your primary motivation to act - from primary brain, not the tertiary brain and - definitely NOT from the subconscious brain
How fear will create the very experience you are trying to avoid
Perceiving something is a learned distinction Focus on: function of intensity of energy. Fear:
Very high degree of negative energy Profoundly limiting the effect on range of focus Narrows the range to focus on the object of our very fear
FEAR
As Motivator to do something:
Limits your perception Limits your opportunities Narrows down your focus Reduces your attention Redirects your focus on the very FEAR you fear Out of all Information you will only perceive
THUS
FEAR
The fear will systematically exclude the awareness of alternatives and opportunities Negative relationship between fear and perception Fear will immobilize people they cant act
Control of Fear
Must not loose objectivity Must never avoid fear / dont shy away / turn your back Must not fear FEAR
Recognize and Neutralize fear How do you neutralise fear? Determine, Define, Limit , Control, Embrace it
2.
3.
4.
Focus on loss
Trust yourself and build up confidence Change restrictive beliefs Create alternatives and choices
How do you break a bad old habit? And install a new empowering habit?
NAC: Neuro Associative Conditioning
1. Leverage: Must change
I must change it I can change it 2. Interrupt old pattern: Radical unusual action or sound 3. Condition in new habit: Do it, do it, do it Discipline
Reinforce and ANCHORING Emotion / pleasure / reward Link to a specific action or sound New behavior and new habit - destiny
But beware
Dont be Fooled by randomness / chance / odds Black swan effect (Nassim Nicolas Taleb) The impact of the highly improbable and highly unpredictable Google 9/11
The problem is, you hope when you should fear, and you fear when you should hope.
Risk
Think in probabilities to be flexible Fix the risk, to control it and use it positively
Losses: leaves you frustrated, depressed, it interferes with future decision making
Get Market Focused not trader or self focused But can you see losses as part of the greater plan?
Losing is winning
Losing = Winning
Taking small predetermined, well educated , well planned
In Technical Analysis:
More than 4 million technical patterns , figures, channels, lines, structures and formations
new and different set of information the other traders changed their minds So it is not a mistake or error, you are not a loser.
You are actually strong with authority you change ..swift, with conviction, strength and clarity You take control over the situation, you do not quit You adjust your position as you would do in any other business in life when circumstances change
No Mistakes in Trading
Just trading experiences
- Unpredictability
Macro level: - Large enough to sample - Total order
- Certainty
- Predictability Challenge: To think in probabilities. To accept both the Micro and Macro levels at the same time
To think in probabilities
1. Completely accept that you do not know what is going to happen next. 2. 3. 4. 5. 6. More importantly: accept that you do not need to know No ego involved Keep odds in your favour (edge) Execute trading model flawlessly, every time, trade after trade Relax: wait for probabilities or edge to play itself out
Only a few and the best can sit on their hands ( Dr David Paul)
To think in probabilities
Cannot predict all the other traders next moves All trades have uncertain outcome, therefore all trades are independent Therefore: Trade in the Now moment Every moment in the market is new and unique If you think in probabilities, then you have accepted all
To think in probabilities
The degree by which you think you know, or need to know what is going to happen next, that is equal to the degree to which you will fail as a trader.
make money
3. Random distribution between gains and losses for any given set of variables that define an edge 4. An edge is nothing more than a higher probability of one thing happening over another 5. Every moment in the market is unique
Energy vibration
Unique outcome
Think in probabilities
If you move that stop loss, you tell the world that You ( the special one ) know what is going to happen next.
Expectations
The market will express itself in a neutral way How will you interpret the information? What mood are you in? What is your personality group?
It is not the markets duty or obligation to make you feel well about yourself .. no ego boosting
Losses are business costs (overheads, cost to do business) Losses are the money I spent to make myself available to the market for the winning trades
Trading Success
7.
Decisions
It is just you
Decisions
In the end all decisions are really emotional thinking
(Six Thinking Hats. Edward de Bono)
Thus:
Thinking decisions are emotional decisions
The Zone
The Zone
Psychological state
You create the zone Focus / discipline / fully engaged You take a loss, you clear your head , you continue Dont get back at the market. Revenge = Ego
Yellow Zone
Yellow zone
Daily grind Only go through the motions Do not take risks Work only for security Boring / not rewarding
Being in the Zone Living in the Zone Gold zone: Magic Human
Outside physical universe Full of Highest Free and positive life-force Spiritual self Ability to control time, space, form and objects
Financial Blueprint
Let no thought of limitation enter your mind Robert Collier Rivers of money (Peter Curruthers) Piccadilly underground train station (Dr David Paul)
Financial Blueprint
Outer laws
Business knowledge
Inner laws
Financial blueprint The way you think Belief system
Money management
Investment strategies
Income grows as you grow. The roots create the fruits. The invisible creates the visible
Copy how wealthy people think Keep our commitments and become accountable for our actions
I create my life
Life happens to me
Blame / Complaining
It is an absolute must, backed by a definite plan, not just a wish or dream. No ifs, butt's or maybes Failure is not an option. Ask believe receive
Think Big
Think small
Same energy to think big or small The more people they help, the bigger the joy.
Focus on opportunities
Focus on obstacles
Rich people take educated risks To succeed financially they always Buy .something Do ...something Start Something What you think about you bring about Energy flows where attention goes Entering the corridor
people
Rich people hang around winners Like attracts like The Law of attraction
P
Smaller than their problems
If you have a big problem in life, all that means is that you are being a small person. Grow bigger than your problems.
You must be good at giving and receiving Never deny someone the joy of giving For every giver there must be a receiver and visa versa. Be the giver, but receive gracefully
Money will only make you more, of what you already are.
P
Get paid based on time
Rich people believe in their value and their results Poor people trade their time for money You must leverage yourself.
Think both
Think either / or
How can I have both? This question will change your life.
Rich people believe: You can have your cake and eat it too.
Middle class believe the cake is too rich so they will only have a little piece. Poor people dont believe they deserve cake, so they order a
Focus on assets and passive income Focus on savings Simplification / minimalist lifestyle Where attention goes, energy flows and results show.
Until you show that you can handle what youve got, you wont get anymore The habit to manage well, is far more important than the amount Either you control money, or money will control you
P
Work hard for their money
P
Let fear stop them
P
Think they already know
Remember:
There is no such thing as failure, unless accepted as such by the human mind It is impossible to fail, as long as you learn something The only limitations you have, are those that you have set up in your own mind. We have complete and unchallengeable control over our minds Genius: has taken full possession of his own mind and faculties
Find your voice and inspire others to find theirs The 8th Habit. Stephen R Covey
Debbie Ford
Ford Institute for Integrative Studies JF Kennedy University San Diego USA
Best year of your life Audio book
Life of
Enrichment
Abundance and
Billionaire
$bn
Warren Buffet
Prince Alwaleed Bin Talal Alsaud Abigail Johnson George Soros Khaled, Hayat, Hutham, Lubna &Mary Olayan
30.5
17.7
Self made
Inherited
25 38 39
George Soros: The Man Who Broke the Bank of England Born 1930, Budapest, Hungary. Began Quantum Fund in 1969 (originally called the Double Eagle Fund). Fund became the Quantum Endowment Fund in 2000. $1000 invested with Soros in 1969 would now be worth $5,142,300* Annual compound rate of return:28.6% $1000 invested in the S&P index in 1969 would now be worth $25,889* Number of losing years: 4 (1981, 1996, 2000, 2002) compared to 9 down years for the S&P 500 since in 1969.
Born 1930, Omaha, Nebraska Started managing funds in 1956 with the formation of the Buffet Partnership (dissolved in 1969) $1000 invested with Buffet in 1956 would now be worth $25,289,750* Annual compound rate of return:24.7% $1000 invested in the S&P index in 1956 would now be worth $73,860* Number of losing years: 1 (2001) compared to 13 down years for the S&P 500 since 1956.
15. Never(seldom) talk about what they are doing 16. Live below their means 17. It is not about the money. Love what you do, not what you own 15. Live, sleep and breathe investing 16. Know how to delegate = Teamwork.
Go within
The Secret The attractor factor In the Zone Discipline / habits
9. Monitor yourself
Navy Seals
A Silent Witness
I RESPECT YOU FOR COMING AND THANK YOU AND FOR YOUR TIME AND ATTENTION Enjoy your trading !!
For those who have learned how to break through the threshold of consistency, the money is not only within their grasp; they can actually take it at WILL
Psychological test
Emotional experience Bio rhythms Successful people operate at the nexus of their skills, interests and talents They love what they do wholly absorbed flow state gold zone Pleasurable, alerted state of consciousness feel at one with your situation
Health
Weight
Illness
Happiness
Result: The only way to change your outer world is first to change your inner world
The rational and emotional parts of your brain is thus dependent on one another
Your brain profile influences the way in which you recognize and deal with your emotions. This implicates that people with different profiles will react differently on their emotions
Managing expectations
We all believe in our own version of the truth Expectations come from what we know. To be wrong causes tremendous mental pain Protection against this pain then we protect ourselves against/from the very information we need to trade
How do we survive?
Visual Pathways
Benjamin Mays
What is your Passion? Should you trade at all? What is the definition of a successful trader?
Discover your spirit again. What gives you the attitude and consciousness of love, abundance and creativity? Follow your heart
Mastery of Self
What makes a trader successful?
The way he thinks:
Thought Ideas
Energy use
Mindset: focus, discipline and confidence
Find and develop a trading system that fits your personality and trading style Very few have the discipline to work the trading system until it is profitable Can a first time golfer compete against Tiger Woods and expect to win?