Lessons from the Pros

Featured Article

The Questions You Ask Can Mean Winning or Losing

Lisa finally closed the trade, but not before she had lost her daily limit in this one trade.  She was not happy about the outcome; however she knew that it could have been worse.  She said to herself, “Even though it is a lot of money, I am getting better at identifying zones and executing the trade according to my plan.”  She then shut down her platform and began to go through her end-of-trading-day routine.  It wasn’t as though Lisa liked to lose; it was just that she had learned to accept losses as a part of trading and knew that she had traded “as” a winner by keeping her rules and trading her plan.  This fact really helped her process the loss in a way that supported her rather than being an albatross around her neck.  What she told herself about the trade went a long way to helping her remain focused on what matters most.

Statements that you tell yourself can be powerful as they are the physical outcomes of what you think.  Additionally, statements can be used to focus your attention in order to remain on task and on purpose.  Another word for a powerful and positive statement is “affirmation” as in a statement of truth or an assertion.  However, did you know that as powerful as statements or affirmations are, to ask the right question can be even more intense and impactful?  Try this, say out loud the affirmation, “I plan my trades and trade my plans perfectly.”  What happened? Did you hear or sense in your head a voice that said, “No you don’t?”  Affirmations are an excellent way to hone your mind and address underlying negative thoughts about you and your trading that distract your attention and distort your judgment.  Furthermore, they can help you to create and maintain self-statements that are proactive.  But, affirmations alone can sometimes fall short when you are using them to directly deal with “limiting beliefs.”

You see, your mind is constantly asking and seeking answers to questions.  Consider for instance, a failed price pattern that you had played.  When your attention has been engaged you invariably will ask yourself three questions, which most times will be out of your awareness.  Those questions are: What is it?  What does it mean to me? And, what am I going to do about it?  These questions form a thought – feeling – behavior dynamic that will eventually lead to results…any and all results are built from this first.  Humans are wired to continually assess their environments…what is there, who is there, what is going to happen, and how should I respond, to name a few.  What if you were asked, “Why does the market discount all news?” Your mind would begin to search for the answer, rarely stopping to determine the veracity of the underlying premise.  Going further, if you are always asking and searching for the answers to questions, why not engage this process to ask yourself empowering questions that will force you to change your thought patterns from negative to positive in order to answer them?  Take the statement “I am a flawless trader” to which the mind might reply “yeah, right!” and change it to an empowering question, such as, “Why am I a flawless trader.”  Try it, ask out loud, “Why am I a flawless trader?”  Immediately, your brain begins to search for an answer to that question.

What is important to understand is that you create your reality in two ways; one is by the statements you make, and the other is by the questions you ask.  Let’s explore the process:

  1.  Identify what you want in your trading. You can use your current trading issues to determine this.  An example would be to take your last negative trade where you violated a rule; as in, “I moved my stop.”  Then envision the goal of how you want to trade without this issue; as in, “I want to plan all my trades and trade all my plans.”
  2. Form a question which assumes that what you want is already true. For example, “Why am I so good at planning all my trades and trading all my plans?”  Your life is a reflection of the subconscious assumptions you make.  When you ask the question you are changing your communication with your inner self and bypassing structures of limiting beliefs that would hamper an affirmation.   Try it.  Did you notice that there is no, “yeah, right!”; that is because your brain bypassed the trigger that would have been associated with a “true/false” statement.  You in effect have unleashed your mind to seek an answer to a question, rather than dispute a statement.
  3. Embrace the question. The process is built more on asking better questions rather than necessarily “finding the answer.”  By asking better questions your mind is focused on your “assets” rather than your deficits; that is, what you have rather than what you don’t have.  As a result of your mind bypassing the structure of your limiting beliefs and negative assumptions, you can begin to do things differently because you are “activating what you have” as your mind connects to the inherent positive assumption in the question, “Why am I so good at planning all my trades and trading all my plans?”
  4. Take new actions based on your new positive assumptions about yourself. You will begin to “look” at your trading from a new set of mental models and lenses based upon your new positive assumptions.  You can begin to activate your internal resources and think in ways that are focused on the actualization of your question.  Rather than being focused on “not moving stops” and trying to use will-power to keep your rules, you can remain focused on planning, patience and follow-through with greater confidence.   As you take action based upon what you have as opposed to what you lack, you can remain intentional about getting consistent results.

Affirmations are potent and can be used as a strong tool to maintain your focus on what matters most.  Additionally, it is important to understand and employ powerful questions as well, especially when you have identified a limiting belief about you or your trading.  Trading is arguably the most challenging venture on the planet and when you are in the trader trenches you’ll want all of your tools to master your mental game, keeping it handy and honed.  Your A-Game, not your B or C game, is the only one that you want to trade with.  Also, get my book, “From Pain to Profit: Secrets of the Peak Performance Trader,” which is available on Amazon.com.

DISCLAIMER This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.

Join over 170,000 Lessons from the Pros readers. Get new articles delivered to your inbox weekly.