YOUR WORLD IS BUILT ON BELIEFS
Not only do you have to deal with the emotions that are driven by the will to survive and affect your thought process. As a trader, you must also come to a new understanding of how personality psychology becomes part of the mechanism for managing uncertainty and probability in trading.
In the process of adaptation, your brain makes certain conclusions about your ability to lead in the face of uncertainty.
These conclusions (suggestions that have produced short-term benefits) are embedded in our evolving minds in the form of personal beliefs. These beliefs determine how you interpret or react to market data. It is these beliefs that must be discovered, explored and transformed in order to validate/prove your potential as a trader.
A trader has a silent partner who helps him to succeed or fail in trading day in and day out – this is his belief in his ability to cope with uncertainty. These beliefs of his are manifested in his trading account in the form of losses or profits. Your trading account, which is a reflection of your trading performance, becomes a window into your mind where your personal beliefs are given a place.
Therefore, by checking the status of your trading account, you can determine which of your personal beliefs are influencing the success or failure of your trading. That is why improving control over emotions and making more conscious decisions plays a crucial role in comprehending / unlocking the potential and controlling the trader’s mind.
Where biology intersects with culture in terms of adaptation, the challenge is to identify what beliefs are limiting a trader’s options, thereby becoming obstacles to his path to consistent profits.
As our developing brain adjusts to the environments in which our families, communities, and cultural backgrounds live, it – and later, the evolving/evolved mind – came to certain conclusions about its ability to manage the risk of uncertainty. These conclusions become our innate/ingrained beliefs that drive us to accept or avoid uncertainty.
Unfortunately, most traders are used to avoiding uncertainty. The very beliefs that limit traders’ own opportunities also keep people in dead-end jobs because they are afraid to fail. At the root of this problem is an acquired sense of incompetence, worthlessness, and powerlessness. These are the beliefs that traders bring into the trading process and it is these beliefs that need to be challenged and transformed into higher level/more useful beliefs.
EMOTIONAL INTELLIGENCE PLUS KNOWLEDGE
Fortunately, beliefs lend themselves to transformation. They are not cast in concrete, but are resistant to change since their inception. The beliefs that allow a trader to take on risk need to be developed over time. Unfortunately, there is no magic wand. The illusion of certainty will continue to shatter traders’ dreams of financial independence and personal freedom until they learn to manage their opportunities and probabilities.
There is no such thing as certainty in trading, only probability. The risk of loss will always exist. In reality, in order to trade, you will need to accept uncertainty and have a trained mindset.
This mindset should be able to accept the risk of uncertainty, not from a mindset that is afraid of loss, which grips the brain and mind, but from a disciplined, patient, fearless and impartial mindset that is able to accept life’s uncertainty and risk. . Trading becomes a way of personal development, caused by the need to rewire the mind for a new way of thinking based on probabilities.
REEDUCATION/RESTRUCTING THE MIND
Managing emotions allows a trader to develop the ability to control the strength of his emotions so that they do not take over his mind. When you are calm, the beliefs that determine perception can be explored through the lens of self-awareness training.
This is where personal development comes into play. The emotionally intelligent trader begins to shed the instilled/historical beliefs he or she has absorbed since childhood. She (or she) becomes the architect of her intellect. It is at this point that the methodology, platform, and retrained mindset takes the risks of trading from a disciplined, patient, fearless, and non-judgmental mindset – this is the ideal situation for managing probability in trading.