Archives of “instant gratification” tag

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Trading Decision-Making Process

  
  Education
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There is a huge difference between a wish and a decision. A wish is a negative and puts the trader in a frozen state waiting for something to happen (generally associated with trying to get even on losing trades). That is negatively charged energy. Decisions, on the other hand, are positively charged energy. It makes the trader take action. Taking action is taking responsibility. You alone are responsible for your current mental state or condition. Decisions can be both good and bad of course. The sooner the trader realized the bad decision, the sooner they can act to correct it.

The first step in the decision-making process is to realize that what you are doing is not working. Remember that falling down is a positive motions is you bounce right back. Make a list of the positive and negative things that will happen when you take action on the decision.

Don’t expect instant gratification if you make the decision. Decision-making is a process that begins with the first step but these steps are the foundation for a stronger behavioral structure. This structure will give you the confidence in your trading. Confidence plays a key role in successful trading. Having the confidence necessary for successful trading can help the trader in difficult trading environments. Whereas one trader lacking confidence and good decision-making skills may be frozen and unable to act, the trader who has taken the time to build this foundation will be prepared to take the appropriate actions.

Many times specific decisions a trader makes will not yield profits, they will result in a loss, but more importantly, it will position the trader to be able to recognize and act on the next opportunity. Practicing and applying this process will pay dividends throughout your lifetime.

What Stays Behind Your Intuition As A Trader

  
  Education
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There are about 7 billion people currently living on the Earth. Each and every single one of us has a different perspective regarding anyone and anything. Do you know why? Because everyone has slightly different past experiences and the way we see the world is determined by our memories. Without them, we don’t have a basis to compare to and without a basis to compare, we are lost. We don’t know how to feel. We perceive through association. We associate based on something already experienced.

I distinguish two types of intuition – inherent and acquired. Inherent is the one you were born with and it is the end product of hundreds of thousands of years of evolution aka trying to survive in the fields. We are wired to seek instant gratification without a deeper thought about the future consequences, we are loss averse and stubborn.Intuition

While the inherent (core) intuition is the pre-installed software, each and everyone of us is born with, the acquired intuition is the upgrade we get through life as it is based on everything we experienced. Your brain remembers everything, even if you don’t realize it. Of course you can easily recall only the most vivid memories as depending on your everyday activity the brain has prioritized what is important and what is not. (more…)

Trading Decision

  
  Education
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There is a huge difference between a wish and a decision. A wish is a negative and puts the trader in a frozen state waiting for something to happen (generally associated with trying to get even on losing trades). That is negatively charged energy. Decisions, on the other hand, are positively charged energy. It makes the trader take action. Taking action is taking responsibility. You alone are responsible for your current mental state or condition. Decisions can be both good and bad of course. The sooner the trader realized the bad decision, the sooner they can act to correct it.

The first step in the decision-making process is to realize that what you are doing is not working. Remember that falling down is a positive motions is you bounce right back. Make a list of the positive and negative things that will happen when you take action on the decision.

Don’t expect instant gratification if you make the decision. Decision-making is a process that begins with the first step but these steps are the foundation for a stronger behavioral structure. This structure will give you the confidence in your trading. Confidence plays a key role in successful trading. Having the confidence necessary for successful trading can help the trader in difficult trading environments. Whereas one trader lacking confidence and good decision-making skills may be frozen and unable to act, the trader who has taken the time to build this foundation will be prepared to take the appropriate actions.

Do the hardest work first

  
  Education
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The greatest performers in any field delay instant gratification in pursuit of their ultimate goal, which is to be the best they can be while pushing through less than comfortable situations.  For me, the hardest work is determining a loss target.  I firmly believe that the very best traders determine where a loss is to be taken before determining where money can be made.  It is difficult to consider how much you are willing to lose before you consider the instant gratification of adding to your bank account.  But it has to be so.  Accept a loss and delay the gratification of instant money for the reward of a lifetime of income.

Self-Discipline in Trading

  
  Education
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Having self-discipline is having the ability to follow through on your plans and goals.  Often times we get tugged in various directions and enticed by making choices that don’t help us along our path to our goals and fulfillment.

“The path of least resistance is what makes all rivers and some men crooked.”
                                                                                                                               – Napoleon Hill

Self-discipline is the ability to make the conscious choice (ultimately it becomes a habit) of doing the thing that will move you towards your goal – and sometimes it’s the hard or unnatural or unpopular thing to do.  It’s foregoing instant gratification for the longer term objective.  Typically, however, people operate on autopilot and this is dangerous when you have not yet developed the right ‘habits’ for success.

In the trading game, you must have self-discipline. You must look at the entire forest and not focus on one tree.  If you get too caught up in each and every trade, you will lose sight of the larger goal.

The key is to care a lot about your overall trading progress, but not care too much about any individual trade.

Your Identity also plays a huge role in this because if you see yourself as someone who lacks self-discipline, then all the will power in the world will not overpower this.  You are someone, in your mind, who lacks self-discipline.

So the key components to have self-discipline in Trading are: (more…)

Run Like A Thief!

  
  Education
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theifConsider the following, every trade must have two objectives: (1) procedure to manage initial risk, and (2) method to maximize profits. Two faces of the same coin!.
As traders we are trading our “hope and aspirations”, in the “belief” that the market “may” accommodate our expectations.
Hence, if there is no “instant gratification”, we must execute a planned strategy to “run like thieves, with or without the loot!”.

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