Jul 27, 2012

Trading Psychology Journal Part 3


Identifying and neutralizing beliefs that are no longer useful in helping one fulfill their objectives.
  • The next step is to properly integrate the five fundamental truths into your mental environment at a functional level.
  • Using technical analysis you can begin to define these patterns as edges. 
  • Any pattern defined as an edge is simply and indication that there is a high probability that the market will move in one direction or another. 
  • Believe in random results -outcome for each pattern is random relative to one another
  • Believe in random risk-Risk on each pattern is random relative to one another
  • Believe in sample size Trading 
  • At the macro level, over a large sample of events,
  • I will have a satisfactory outcome. At the micro level 
  • each individual event has a random outcome.’
  • Neutralise existing self 
  • sabotaging beliefs and adopt the Seven Principles of 
  • Consistency 
  •  make them a part of your identity by 
  • making them a part of your set of trading beliefs.
  • ‘If you believe it, you will create and perpetuate it 
  • because it will be a natural function and expression 
  • of who you are.’
  • ‘Your consistency happens inside your mind, not in 
  • the market.’

Creating and growing beliefs about trading, that promote objective observation and flawless
execution of one’s chosen trading methodology.
  • Practicable trading beliefs to adopt as part of my personality (the Five Fundamental Truths and the Seven Principles of Consistency).
  • Completed my understanding of the role that 
  • trading with a mechanical system plays in thinking 
  • from the market’s perspective.
  • Confirmed for me the reasons why a mechanical 
  • system is required for nearly everybody that 
  • attempts trading. I say nearly because there are a 
  • very small number of the population that I believe 
  • can learn to trade markets intuitively.




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