There's one question that I get asked more often than any other.

It goes something like this… 

I'm really frustrated because I've tried so many trading systems and nothing seems to work! What should I do next? 

So instead of typing out an answer to every single email, I thought that I would take some time to collect all of my thoughts in one blog post. 

If you are feeling frustrated with your trading, then this post is for you…

You are Not Alone 

Almost every successful trader has been in the position you are in now.

I have heard this story over and over and over, when interviewing successful traders. 

Therefore, the first thing you need to do is forgive yourself and make peace with the fact that this frustration is just part of the learning process. 

It's time to embrace the suck and move forward. 

This guide will show you the best process I know of to reboot your trading in a clear, systematic way.

When you follow these steps, it becomes much easier to figure out where you are going wrong and how to fix it. 

Step 1: Take Full Responsibility for Your Trading Results  

If you are blaming someone or something else for your trading losses, stop right now.

Everything begins and ends with you. 

So take a good hard look in the mirror and repeat after me…

I am 100% responsible for my trading results. 

Here are some ways that you might not be taking complete responsibility for your trading results: 

• Blaming your broker for running your stops 
• Blaming your job for not having enough time to trade 
• Blaming a trading course for not teaching you the right strategy 
• Blaming your mentor for not giving you enough attention
• Blaming Tim Ferriss because he hasn't figured out a hack for learning successful trading in 4 hours yet 

You get the idea. 

So before you move on, you need to take extreme ownership of your situation. Even if something may not seem like it's your responsibility, take ownership of it anyway.

Have a backup plan.

Have a backup plan for your backup plan. 

For example, you cannot control when your internet connection will go down.

But you can have your broker's app on your phone so you can still execute trades.

You can also figure out which coffee shops in your neighborhood have free WiFi, so you can still trade, even if your internet at home goes out. 

If you want all of the rewards of successful trading, you need to be responsible for the not-so-fun parts too.  

Step 2: Write Down Your Trading Strategy 

Do you have a real trading strategy or are you just parroting the last trading guru you saw on Instagram? 

I see a lot of traders start trading a strategy (with real money) that they learned the day before on YouTube.

Usually, they only watched the video once and only have about 80% of the rules right. 

I'm not judging, I've totally been guilty of that too.

But if you are wondering why you aren't getting the same results as the trader in the video, then this is one possible reason. 

There's nothing wrong with getting a trading strategy from YouTube, a course or some blog.

But take the time to write it down and go over the material several times so you are sure that you understand all of the rules to the strategy. 

You need to start building a playbook. 

An easy way to write down the complete rules of your trading strategy is to download this free worksheet. 

I know what you will probably ask next…

But what if I trade several strategies? 

Then focus on just one for now.

The one that you think has the greatest probability of success. For every strategy you add, your chances of success drop significantly. 

It's like juggling.

Anyone can juggle 1 ball. 

But how about 6?

That's much, much harder. 

I'm not calling anyone dumb.

All humans have limits…including you. 

Start with one thing at become a master at it. 

Step 3: Figure Out if You Have an Edge 

Now that you have your strategy written down, it's time to test that strategy to see if it actually has an edge. 

Obviously, there are a ton of different trading strategies out there.

But at a very basic level, most traders either have a technical or fundamental trading strategy. 

If you have a primarily fundamental strategy, then see if you can get historical fundamental data to backtest your trading ideas.

Can't get historical data?

Then you will have to forward test your strategy.

Read this post to learn more about forward testing. 

If you are trading a technical strategy, the read our backtesting guide for tips and tools. 

Either way, commit to testing your strategies in a demo account or with backtesting software.

If you cannot get positive results in testing, then there's no way that you will have an edge in live trading. 

Step 4: Keep Excellent Records 

This is super important. 

In order to figure out exactly where your trading is going off the rails, you need to have as many feedback loops in place as possible.

It's like the gauges on a dashboard.

Each one tells the pilot exactly what's going on with a part of the helicopter. 

Similarly, your records will allow you to see exactly what's happening in every aspect of your trading. 

So document everything you are doing. 

Here are the records that you should be keeping: 

• If you are backtesting, you should record every single test that you do in a spreadsheet. Yes, even the “bad” ones. 
• Journal every single one of your forward testing and live trades. It doesn't matter what you use, just use what works for you. Here are tutorials on how to use Evernote and Trello. 
• Also journal your missed trades. This will show you how much profit you are missing out on and more importantly…help you figure out how to stop missing out. 
• Track your win rate in live trading and how it compares to your testing results. If there is a big difference, then figure out why this is happening. 
• Record your physical and mental state when you are trading. You can do this in your journal as a qualitative entry, or you can use quantitative tools like Muse, a heart rate monitor, Apple Watch or NeuroTrader. Try to spot patterns in your readings that tell you when you should and should not be trading. 

I know that it's a lot to track. But if you are dedicated to becoming a successful trader, then you should leave no stone unturned. 

Take a look at what elite athletes do to train for their sport.

That will give you some clues as to what it will take to make it in trading. 

The “sport” is different, but mindset needed for success is the same. 

Step 5: Adjust Systematically 

Now that you have a process in place for tracking your progress, work on each step and don't move on until you have completed each step successfully. 

If you hit a point where something isn't working, then don't give up and jump to a new strategy.

Simply backtrack to the last step and try to figure out what changed when you moved on to the next step.  

You may have to experiment with a few different variations of your strategy before you find something that works. 

Trading is not easy. But if want the rewards, you have to be willing to put in the work. 

Final Thoughts 

So if you are ready to reboot your trading and start fresh, first take a few deep breaths. In fact, follow this video to learn a simple exercise for reducing stress and frustration. 

Now start at step 1 of this guide and work on each step until you complete it. 

I understand that it's much sexier to skip directly to trading. B

ut that's probably what got you to this point to begin with. 

Take your time, focus on the process and the results will come. 

The post The Trading Reboot Guide for the Frustrated Trader appeared first on Trading Heroes.

This post is not directly related to trading, but inspiring movies/TV series can help traders in two ways:

• Watching movies gives us something to do during slow periods in the markets, so we don't take impulsive trades.
• These movies show us what human beings are truly capable of, when we put our minds to it. This inspiration can energize us and help drive us to new levels of performance in trading and in life.

So if you are looking for some new movies/TV series to watch, here are the top 19 that I recommend. Most of them are available on Netflix, at the time that this post was written.

There are a lot more movies out there, so I might have to do a part two later. But this list will certainly keep you busy for awhile.

I chose these movies based on how inspired I was after I watched them and how important I felt the message was.

I hope you enjoy them as much as I did.

1. Man on Wire

This is without a doubt, one of the most amazing stories of all time. A French guy breaks into the World Trade Center in New York, before the towers are completed.

He strings a tightrope across the towers and proceeds to walk back and forth for over an hour, with no safety harness.

Don't worry, I didn't spoil anything for you. Even though you now know how the movie ends, the rest of the story is so amazing, that it is hard to believe.

There is a newer version of this story, but I like this one best.  It is truly a testament to what one person can do, when they really set their mind to doing something.

2. Kindness Diaries

I thought that this series was going to be cheesy and totally sappy.

…and it started out that way.

But as I got deeper into the series, it turned out to be an amazing tale of adventure and uncovering the good in the world. Too many times, we are shown what is bad in the world.

In this series, Leon Logothetis has the goal of traveling around the world on a motorcycle (with a sidecar).

Yeah, that's been done before…

However, the catch is that he cannot use any money and must rely on the kindness of others. This makes the journey a million times harder.

Does he make it? Find out how far he gets and how he repays the kindest people on his journey.

That's the coolest part. 

It will restore your faith in humanity.

3. Minimalism: A Documentary About the Important Things

Minimalism doesn't mean that you have to sell all of your stuff and live in a camper van on the side of the road. As I have written about before, it can simply be a great way to figure out what is important to you.

…and it can help you with your trading.

When you first get into the concept of minimalism, you scale back as much as possible. That means donating clothes that you haven't worn in a long time, selling your old sports equipment on eBay and putting everything else on Craigslist.

This can be a tough, especially if you are used to accumulating a lot of stuff. But once you get going, it is very liberating.

After you cut everything to the bone, you are free to only add back the things that truly make you happy.

…and that's when things really get fun.

You can learn more about the movie here.

4. One in a Billion

Quick…when I say NBA (National Basketball Association), what is the first thing that comes to mind?

I probably can't guess what you thought of.

…but I bet I know something that you didn't think of.

Asian dudes.

How many Asians do you know of in the NBA?

Two?

…yeah, I thought of the same two also. There are actually more, but that's beside the point.

This movie documents the story of the first Indian man to be drafted in the NBA. It is an amazing story and an inspiration to anyone trying to overcome long odds.

Watch it.

5. APEX: The Story of the Hypercar

I love fast cars, just as much as the next trader.

…and I'm a fan of anything that Koenigsegg creates.

This movie is the story of how Christian von Koenigsegg started the company and created one of the most respected hypercar brands in the world.

At the time that this movie was made, they were in the process of launching the One:1. So it takes you through the though process of the car and how it was created.

It shows us that we can create something incredible, when we put our minds to it.

6. I'll Sleep When I'm Dead

I hate Steve Aoki's music.

But that's OK because there is a lot of music that I dislike. However, I thoroughly enjoyed this movie and I am amazed by his work ethic and respect what he has accomplished in his career.

His story begins with a famous father, how he was too busy working, and was never around for his kids. This was the catalyst for Steve's desire to be the best at whatever he chose to do.

That just so happened to be music.

This movie shows how sheer determination and a passion can create a life worth living.

7. The Barkley Marathons: The Race That Eats Its Young

I'll admit, this movie caught me off guard.

I didn't quite know what to expect when I clicked play, but it turned out to be a quirky story of one of those cool underground events that very few people know about, but a lot of people would love to participate in.

The Barkley Marathons doesn't have a website and nobody knows what the course will be like every year. You have to know someone to even register.

When you arrive, you also have to bring an odd entrance fee…a license plate from your home state.

Once the race gets started, it is one of the most grueling races in the world. Only 14 out of about 1,000 people have actually finished it.

This story is a perfect example of doing something fun (the organizer) and taking on a challenge that is impossible for most people (the participants), but giving it your best shot anyway.

8. The Men Who Built America

This series a little over-dramatized, but it gets the point across. The men who built America truly lived by a different set of rules.

But we can still learn a lot from them.

Get some insights into what it took to build a nation and how you can apply that same sense of big-thinking to your life.

9. Long Way Round / Down

These are actually two TV series with the same theme…attempt a long, difficult adventure on a motorcycle. Follow actors Ewan McGregor and Charley Boorman as they drive their motorcycles on two epic journeys.

First, they take their bikes over 20,000 miles from London to New York…the long way. On the second adventure, they travel from Western Europe to Cape Town, South Africa.

Even if you don't like motorcycles, these movies will give you the itch to travel, for sure.

10. Jiro Dreams of Sushi

This is a man who is dedicated to his craft. Well, dedicated might not be strong enough of a word.

Obsessed is more accurate.

It is a story of someone who isn't afraid to work hard and he has created exactly what he envisioned.

We can all learn a lot from him.

11. Senna

This movie got me interested in Formula 1. It is the story of legendary F1 driver Ayrton Senna and his rise to the top of the sport.

He had a lot of talent, for sure. But he also worked hard and this movie showcases the competitiveness and passion that made him a legendary driver.

12. Space Dive

What do you do when jumping out of an airplane becomes blasé?

You jump out of a spaceship, of course! OK, not quite a spaceship, but jump from a ballon floating on the edge of space.

This is another story that blew me away.

There are a lot of things that can go wrong with skydiving. But jumping from space presents so many more risks.

Witness this record-breaking jump from 128,100 feet above the earth and learn how Felix Baumgartner prepared for this historic feat.

13. Stretch and Bobbito

This movie is badass!

I'm a huge fan of the golden era of hip hop (late 1980s to early 1990s) and these guys were instrumental in making those artists popular. I didn't even know that these guys existed until I watched this movie.

They were college DJs for the Columbia University radio station and they had the late-late night spot. Since they were college students, they didn't get paid. In fact, many times they had to pay out of their own pockets to get things done.

In order to listen to their show, you not only had to stay up late, but you also had to get the tuning just right because the signal was pretty weak. But once you did catch the signal, you were treated to a majority of the biggest names in hip hop…before they were famous.

People used to record those shows on cassette tape and sell them. Many people still have their tapes.

The shows were that good.

Their guests included names like the Wu-Tang Clan, Jay-Z, Busta Rhymes, Biggie, Big Daddy Kane and much, much more.

It goes to show that if you do something for the pure love of it, great things can happen.

14. Sunshine Superman

What do you call a guy who likes to jump off mountains?

Suicidal?

If he gets others to do it too, does that make him a cult leader?

Perhaps.

But Carl Boenish started a movement that became known as BASE jumping and what followed was amazing. He got people to conquer their fears and do something exhilarating.

After watching this movie, you probably won't be inclined to jump off a building with a parachute.

But it will make you question what the hell you are doing with your life.

15. Next Goal Wins

This movie is actually a little sad because it is an underdog story of epic proportions.

…but it has a pretty happy ending.

It is the story of the Samoan national soccer team. The movie starts with their record 31-0 loss to Australia, which brands them as the worst soccer team ever.

So they enlist the help of a legendary Dutch coach to try to turn things around. Watch this movie to find out if they can qualify for the World Cup in Brazil.

16. Valley Uprising

Like Sunshine Superman, this is another story of a group of rebels who made history with their death-defying feats.

This is the story of a group of climbers in Yosemite National Park who started a revolution. They climbed faster and more dangerously than anyone had dared to climb before.

You don't have to be this rebellious. But this movie gives us insights into what it takes to push way past your comfort zone.

17. Riding Giants

I love surfing and this is the story of some of the most daring wave riders in history. It amazes me how they can brave these gigantic waves, when I get freaked out on waves that are a fraction of that size.

This movie is yet another example of people who push the limits and do incredible things.

18. Exit Through the Gift Shop

I highly recommend watching this movie because it is a perfect example of people who didn't wait for approval to do what they loved.

Sure, what they do is usually illegal. But they also create amazing art and have become world famous.

Some of them now do far less illegal things and are able to make a living through their art.

Now, I'm not suggesting that you should break the law. But I am saying that you should stop asking for permission to do what you love.

19. The American Dream Project

Finally, let's end this list with a feel-good series about a couple of guys who travel around the US on motorcycles and find out if the American Dream is still alive.

They find that it is alive and well, but it is certainly different things to different people. That is what is so cool about this series.

It shows us that there isn't one set formula for the American Dream. It is what you make of it.

Regardless of where you live, this series inspires you to find your own dream. 

Final Thoughts on Inspirational Movies

So that is my list of the 19 most inspirational movies that I have ever watched. I hope that they inspire you to reach your goals.

What are your favorite inspirational movies?

Leave a comment below and share them! 

The post 19 Inspiring Movies That Show You Anything is Possible appeared first on Trading Heroes.

This is something that has taken me a long time to realize.

But when I take a step back and reflect on things that have had the biggest positive effect on my development as a trader, this is one is one of the most important.

It is the ability to forgive myself. 

It's not talked about much on the internet, but after you read this post, you will probably agree that it will more for you than any trading system.

So in this post, I'll give you five scenarios where we, as traders, tend to be too hard on ourselves.

More importantly, I will also give you solutions on how to improve your mental state in each scenario, so you can be in the best position to take advantage of the next trading opportunity.

Being able to forgive yourself is the most powerful secret weapon in trading. 

Scenario #1: After a Losing Trade

This one is pretty obvious, but I don't think that most people understand the degree to which they beat themselves up before, after and during a losing trade.

So let's dissect what goes on during a losing trade and how to minimize the effects of our negativity bias.

The negative emotions can start long before you get stopped out…

Trade Entry

When you enter a trade, you may already have some doubts. To a certain extent, this is natural.

Nobody knows exactly what will happen, on any one trade.

However, if you have too much doubt, this will start to cloud your judgement and can lead to you mess with an otherwise profitable trade.

This means moving your stops, exiting early and simply making much less money than you should have.

So when you enter a trade, you need to be as confident as possible, or this can set off a negative chain reaction, as we will discuss later.

On the flip side, having too much confidence in a trade is not good either.

If you always are sure that a trade will work, you might attach part of your identity to the trade.

When the trade is a loser, then you take that personally and feel like a loser too.

Overconfidence also leads to over trading.

Obviously, neither of these conditions are conducive to profitable trading.

Solutions

There can be two primary reasons for you not having confidence when entering a trade.

First, you probably haven't back and forward tested your system, so you don't understand your probability of winning.

If you know this important statistic, then you will be less worried about a loss.

You will understand that you will win some and lose some, but on the whole, you should come out ahead.

So if you don't know your odds of winning with a particular strategy, then do some backtesting and forward testing right now.

If you don't even have a trading strategy, then you should start with these courses.

Now, if you have the opposite problem and you are overly confident that you will win on every trade, then you need to check yo' self before opening a trade.

Here are some exercises you could use:

• Tape a couple of losing trades to your monitor, trades where you were super sure that they would be winners
• Watch Titanic
• Write down an emotional situation where you sure that you were right, but you were still wrong. Preferably, a situation that is not trading related.
• Watch Titanic again

Of course, you don't want to give yourself too big a dose of negativity or else you will become too negative. That is exactly what you want to avoid.

But you need to give yourself a reality check and realize that you can lose. The more that you can control your emotions during a win and a loss, the better your chances of success.

During the Trade

Once you are in a trade, it can be a whole different ballgame. You may have been cool, calm and collected when you entered the trade.

But now shit just got real.

If you are prone to riding the emotional rollercoaster during a trade, then you will beat yourself up until the trade is closed. This can color your judgement during and after the trade.

Solutions

I won't lie, it can be tough to manage your emotions during a trade. But the more that you practice your trading method, the better you will get.

So have a plan, start with a small account and learn to remain objective. Riding that coaster can be fun in the beginning, but it gets old real quick.

Learn how to detach yourself from your trades, while they are in progress, and your trades have a better chance of working out.  

After the Trade

If a trade turns out to be a winner, then you say:

I knew it.

…and you move on to the next trade.

But if it is a losing trade, then you can start to invent all kinds of reasons why the trade didn't work out. Yeah, I've been there too.

Even if you executed your plan exactly, you might say things like:

• I should have exited earlier
• The S&P500 was down and I should have stayed out
• Why didn't I see that pin bar?
• …and on and on

Solutions

In reality, it might have been a great trade. Some trades just don't work out.

So keep a trading journal and add your charts before, during and after the trade.

Then wait a few days.

Then review the trade again.

This will help remove any emotional attachment to the trade and help you view it more objectively. Remember, a losing trade is not a bad trade.

Learn to tell the difference and stop beating yourself up when you should really be congratulating yourself on playing the odds correctly. 

Scenario #2: You Hate Your Job

It's 3:30 pm and you are sitting at your desk at work.

Watching the clock…

Waiting until 5:00 pm rolls around, so you can get the hell out of there.

But what is going through your mind during this time?

Probably something like…

• “I'm better than this job”
• “I hate my boss”
• “I hate this work”
• This is a waste of my time and talents
• “I want to trade from _________ (insert exotic tropical destination)”

…or something along those lines.

Am I right?

I've been there too.

Well, beating yourself up like that isn't helping you develop as a trader. 

First, that only puts unnecessary pressure on yourself to “make it” in trading. This is why people quit their jobs prematurely. Then they find out that trading isn't as easy as it seems on the internet, and they are in even deeper shit than when they started.

This is also the biggest reason that people blow out their accounts. In their haste to quickly replace their job income, they fail to understand that risk management is fundamental to trading success.

Second, it only feeds your negativity bias. When you start thinking negatively about one thing, it tends to color everything else negative too.

In the past, we needed our negativity bias to survive. Our ancestors were being chased by sabertooth tigers and giant alligators.

In those situations, it pays to think about what could go wrong. That's how you stay alive.

But in our modern society, the biggest daily concern for most office workers is getting stuck in traffic on the way home.

…pretty big contrast, huh?

Here's how you can reframe your job to make it benefit your trading.

Solutions

Be Grateful for What You Have

When you hate your job, it can be easy to forget that your job is putting food in your belly, funding your trading account and allowing you to take the kids to Disneyland every year.

So be grateful, dammit. 

Be grateful that your biggest problems in life are NOT being eaten by a wild animal being shot at by gangbangers or dying of starvation. Be grateful that you have the ability to take care of yourself and people you love.

Even if it doesn't feel like it right now, you do have this ability.

Now that we have established that a job has some benefits, let's reframe your job into something that can help your trading.

You Probably Have a Lot More Options Than You Think

If you hate your job/boss/commute, then…you hate it. I'm not telling you to suck it up and be miserable.

My samurai ancestors would cringe at that statement, but it's totally true.

I am telling you that you have options…if you get off your ass and take advantage of them. 

You can change jobs. You know this, but sometimes we are so comfortable in a job that we get stuck in a rut.

I've been there. I stayed at a job for 5 years, when I should have quit after 3.

However, I learned my lesson and quit a subsequent job in 2 years when I knew I needed to get out.

On top of that, quitting and getting a new job gave me a 40% raise in pay and better working conditions.

You always have options.

…and you don't have to just look in your local area either. 

Many traders dream of being able to work from anywhere in the world.

But guest what?

You don't have to be a trader to be location independent.

It is totally possible. My current day job and my last 3 jobs have all been location independent.

I've worked from Helsinki, Tallinn, Honolulu and many other cities.

Start looking on websites like We Work Remotely, Upwork or Indeed for remote work opportunities.

You will probably be surprised at what is available.

Scenario #3: On a Losing Streak or Having a Losing Month

Being on a losing streak or having a losing month can hurt your ego. When people start out in trading, they want to be profitable every single month.

When they do have a losing streak or even a losing month, then get really down on themselves. I was like that for awhile.

It hurt me to see that on my account statement and many times I stopped trading for a couple of months, or I was really gun shy.

I took the losing streak personally, when in reality, it's a normal part of trading.

Solutions

What's the answer to this problem? I found that it is mental toughness.

Ever wonder how these billionaire CEOs of international companies handle difficult decisions that affect thousands of people…

…and you have difficulty choosing what shirt to wear in the morning?

The answer is mental toughness.

You need to be able to handle the pressure of tough decisions.

I've also found it helpful to be conscious of every single decision that I have to make.

I ask myself if the decision really is difficult as it seems, or am I making it harder than it really is?

Oftentimes, I am making it harder than it needs to be.

How about you?

Scenario #4: Missing a Trade

Chart: TradingView

Another way to beat yourself up is to look at a chart and obsess over the number of pips that you missed out on.

This goes for a trade that you missed or a trade that you exited too early.

We have all been there and thought of that trade for days or even weeks afterwards.

I've even met people who talk about a trade years later.

Focusing on a trade that has already happened can blind you from seeing new trading opportunities.

In addition, you may also start to filter future trades through the lens of what happened on your “tragedy trade.”

This can really mess with your head.

It's like being stalked by a crazy ex.

Solutions

Solving this tendency can be done through repetition. It's not easy, but if you do it regularly, it might not take as long as you think.

There is a phrase that I say to myself, that might help you…

“My success in trading depends solely on my next trade.”

If that resonates with you, the write it down and keep is somewhere where you will see it all the time.

This phrase helps me in two ways.

First, it keeps me focused on my next trade.

I need to do my homework and I need to be in the right state of mind when I am trading to do well.

Second, it helps me get past any negativity in my last trade.

Good or bad trade, I'm going to move on and wipe the slate clean on the next trade.

Figure out a phrase or image that can help you get past the negative emotions of previous trades.  Say it or look at it often and it will help you overcome your fixation on your last trade. 

Scenario #5: Seeing the Success of Other Traders

Last, but certainly not least, is the jealously factor. When you see other traders succeeding, you start to ask yourself why you haven't succeeded at that level yet. The most commonly used phrase is:

Why am I so behind?

This is especially true if the trader you are looking at is significantly younger than you.

We both know how that feels.

Solutions

The thing that has helped me the most is to take full responsibility for my current situation. Even if I don't how to change my situation, there are two facts:

1. This is my situation now and no amount of wishing or lamenting will change that.
2. Regardless of what others have already accomplished, I must walk my own path. There are also many more people who are in a worse position than me and not everyone is successful early. Sometimes it takes a little time.

Nothing will change unless I do.

So I need to…

Work hard and figure it out. 

So stop comparing yourself to others. You are who you are and nothing will change unless you do.

Go create that reality that you have been dreaming of.

Start with a Heroic List and start crossing off some small achievable goals.

This will build your confidence and help you realize that you can do it.

Final Thoughts on Your Secret Weapon in Trading

In order to succeed in trading, you need to be your own best ally, not your worst enemy.

Learning to forgive yourself is a huge first step in that process.

The post Your Secret Weapon in Trading: Forgive Yourself appeared first on Trading Heroes.

There's a phrase that I've been hearing a lot lately: Embrace the suck. 

I recently binge watched a show called Remote Survival on Netflix.

I recommend you watch at least one episode, it's really interesting, from a mindset perspective.

It is a show where ordinary people have to survive out in the wild for 2 days.

Now that doesn't sound like much, but you would be surprised how difficult that is for some people.

Quite honestly, I don't know how well I would hold up in that situation.

It is interesting to see how people deal with adversity. Just like in trading, some people fight through and others just give up.

There's a phrase that I've been hearing a lot lately:

Embrace the suck. 

I recently binge watched a show called Remote Survival on Netflix.

I recommend you watch at least one episode, it's really interesting, from a mindset perspective.

It is a show where ordinary people have to survive out in the wild for 2 days.

Now that doesn't sound like much, but you would be surprised how difficult that is for some people.

Quite honestly, I don't know how well I would hold up in that situation.

It is interesting to see how people deal with adversity. Just like in trading, some people fight through and others just give up. 

Anyway…the people in this show have a radio connection to a survival specialist that guides them through the entire process.

One of the specialists always tells his guy/gal: “Embrace the suck.”

If you haven't heard the term before, it basically means that the activity you are currently engaged in, will suck.

So get past that it and figure out how to beat it.

In my opinion, trading doesn't suck.

It is actually quite fun.

Other people may think otherwise.

If you think it does suck, you should probably look for another profession.

But what does suck, when we are going through the learning process, is our trading performance.

So if you are still trying to figure out how to trade consistently, then here are a few strategies that you can use to embrace the suck and fight your way through the learning process.

Not Bad Meaning Bad, But Bad Meaning Good

Losing trades are actually a good thing. A long losing streak is also good thing.

It tells you that you have work to do.

If you are losing money every month, let's not sugar coat it, you suck at trading.

Many people come to trading, thinking that it will be easy.

They think that they can read an ebook over the weekend and they will start making money, come Monday morning.

That is how you can smell a trader who will fail, from a mile away.

Like any other profession, it doesn't work like that.

Would you try to do brain surgery after you finished a course you bought off late night TV?

Of course not.

But even if you suck now, remember that it is a prerequisite for becoming a professional trader…

Most Pro Traders Were Terrible (at First)

Most professional traders agree that great traders are made, not born.

So take heart in the fact that almost all consistent traders didn't start that way.

Joel Kruger wanted to give up trading many times.

But he stuck with it and he was able to quit his job as an analyst, to become be a full-time trader and educator.

I've seen his track record, he is the real deal.

Rafael borrowed a ton of money from his family to start trading.

He made a little money at first, but he got cocky and lost it all.

That was a painful experience that he does not wish upon anyone.

One of my favorite books is When Super Traders Meet Kryptonite.

It is a really good illustration of how even successful traders can suck, when they let their guard down.

Sometimes enough to blow out their entire account.

…and of course, if you want to read about traders who really sucked and lost a lot of money early in their careers, read the Market Wizards books.

Read these books and listen to these interviews. They will give you some confidence that even the best traders in the world started out just like you. 

The Sign of a Trader Who Will Fail

A common phenomenon with amateur traders is that they open a MyFxBook to journal their trading and establish a track record.

That is great, all traders should do it!

But then what usually happens next? 

They hit a losing streak and it they shut down their account and start a new one.

This goes on again and again, until they give up. They get stuck on the Trading Silodrome.

Traders do this because they want to show the world a perfect track record.

They don't want to face their shortcomings.

But that is the worst thing that you can do…if you actually want to be successful.

So when you open your MyFxBook account (or any other similar tracking website), keep your account open the whole time.

Remember that even professional traders have losing streaks. If you show your losing streaks, isn't that more professional?

Showing losses and gains will make your track record much more credible, even if it is painful now. 

Learn to Let Go

There is a lot in our past that we carry with us into the present day.

A lot more than we realize.

If you dwell on past events, past failures and mental programming that isn't getting you anywhere, then you need to figure out how to fix that.

I've found that meditating with binaural beats has helped a lot, but the process takes time.

Don't rush it, just work at it a little every day.

But there are many others, take some time to find one that you like.

There is no miracle cure. The key is to become more aware of what is holding you back. 

The answers are in your rattling around somewhere in your head. You just need to let go of your past and quiet your mind enough to find them. 

Go Easy on Yourself

This is related to learning to let go, but is worth mentioning on its own. 

Going easier on myself is something that I have been working on, but it's a process.

For most people, the default reaction is to get down on themselves when they have a losing trade.

You have to remember that a losing trade is not necessarily a bad trade.

Even the most profitable trading systems have losing trades.

But expending your mental capital by beating yourself up over losing trades, just means that you will be more likely to lose your next trade.

The biggest part of embracing the suck is to forgive yourself for your mistakes, learn to recognize the difference between normal losses and bad trading, and soldier on.

Final Thoughts

So if you are having a tough time right now, embrace the suck.

Find a way to fight through it and become the trader you have always pictured yourself to be.

…and these strategies don't only apply to trading.

Think about how you can apply this to other things in your life.

The post Embrace the Suck if You Want to Make it in Trading appeared first on Trading Heroes.

The storm's a-comin'.

…or maybe it has already hit you.

It can be disorienting, disheartening and even depressing. I wish that I was being a drama queen but unfortunately I'm not.

If you have already gone through this, you already know what I'm talking about. If you haven't, I want to prepare you for it.

Either way, this post will help you deal with people who want to smash your trading dream into a million pieces.

You might think that the people who are closest to you will always be your biggest supporters. But the opposite can be true and often is…when it comes to trading.

In all fairness, these people usually have your best interest at heart.

So what can you do? 

We will explore steps that you can take to reduce or eliminate the effect that these people have on you. Since protecting your mental capital (trading psychology) is just as important as protecting your monetary capital, it is vital for you to figure out how to stay as focused and positive as possible.

So if you are wondering what to do about people who are always bashing your dream of becoming a Forex trader, here are some honest and actionable things you can do.

Have a Heart-To-Heart Talk

The best place to start is to just have an open and honest talk about what trading means to you and asking the naysayer to be a little more supportive of your dream. If you get your feelings out there, then you may be able to hash out some possible misunderstandings and clear the air fairly easily.

But don't do all the talking.

Listen too. 

Ask them why they are so against it. Many times there are perfectly valid reasons.

They will usually think that it's dangerous, or it's not a real job, or they just don't understand it.

Do your best to understand where they are coming from. Many times, they simply don't want to see you get hurt.

Talk about how trading can possibly provide you with a better future, help you get out of that job you hate or just give you more options in life.

If that doesn't work and they seem pretty set on their negative stance then here's what you can do next…

Don't Bring It Up Around Them

As passionate as you are about trading, one way to avoid confrontations around the subject is to just avoid the topic all together. You obviously associate with these people for reasons besides trading, so if you still want to hang out with them, find other things to talk about.

Even though they are a close friend or family member, it doesn't mean that you have to talk about everything with them. Keep your trading aspirations to yourself and you might both be happier for it.

If they ask you why you never bring it up, just be honest with them. Tell them that it isn't a topic that you both agree on, and you value their friendship, so you think that it is just better if you don't discuss it.

How to Get Your Partner Involved

There may be situations where you have no choice however. For example, if the person that doesn't support you is your partner. You live with them and you should obviously discuss all financial matters with them.

But what can you do if they are really against you trading?

I haven't run into this situation personally, but I have heard a few great solutions over the years. Jessica Peletier mentioned in episode #2 of The Trading Lifestyle Podcast that her solution was to just keep talking about it until her husband was comfortable with the fact that trading involves both gains and losses.

This may take a little strategic thinking to ease your spouse into this, but it can be helpful. Don't lie to them obviously, but get them comfortable with the process first.

Also let them know what's going on, so they aren't worried.

If there is an analogy to trading that they might understand better, then try leading with that.

Using an Analogy to Trading

For example, trading could be compared to running a bakery. Some days you will do well and sell all of your muffins.

Other days, you might lose money because you only sold a small portion of your muffins. Just like in trading, there are winning days and losing days.

If you took out a business loan to start the bakery, that is like trading on margin because you are borrowing other peoples money to invest in the business.

In both trading and running a bakery, you have to figure out your system (or muffin recipe), manage the risk (don't bake too much, lease bakery space you can afford, etc.) and take the time to learn the trade.

Anyway, you get the point.

Use an analogy that your partner would understand.

Don't get me wrong, I'm not calling your spouse or partner dumb. Trading is just one of those things that very few people know anything about.

Just because you and I know something about it, that doesn't mean that others do. Not taking this into account can lead to major misunderstandings.

…and nights on the couch.

I also think that it is helpful to show your partner examples of people who are successful traders. This can go a long way to expanding their comfort level and awareness.

Set Risk Limits

Another method that I've heard about is to agree with your partner on an amount of money that would be worth risking in your trading account. Some traders have even gone so far as agreeing to give up trading completely if they blow out their account.

Hopefully it doesn't come to that, but it may be required, in certain circumstances.

When pitching trading real money to your partner, keep the money at risk as low as possible. When your partner knows exactly how much is at risk, they are more likely to let you do it because they are comfortable with what is at stake.

Then do your part and stick to your end of the deal, don't risk more than the agreed upon amount.

I would suggest starting with Oanda (if you can, in your country) for as little as $100. Actually, you can start with much less, but I feel that is the minimum amount to be “properly capitalized” for learning.

You can trade for a penny a pip (or less) and still only risk 1% on each trade because Oanda allows you to trade nano lots.

For example, if you have a $100 account, you could risk 1% per trade ($1 total risk) and still have a 100 pip stop loss if you trade for a penny a pip.

Nano lots also allow you trade much smaller lot sizes so you can trade for even less than a penny a pip, if you want to risk less or need a bigger stop loss.

Yes, you won't get rich, but that's not the point right now. You need to learn, and not lose a lot of money doing it. 

…and not piss off your partner either

Also be sure to demo trade and backtest so you have results to show before you actually risk any real money. If you can show positive results and dedication to your craft, even when real money isn't on the line, that will make your case much stronger.

If all that fails, you can always resort to sexual favors.

Just joking.

Kinda.

Now let's talk about people who are not your partner and what you can do to limit their negative influence on your trading.

Reduce or Eliminate Your Contact With Them

This is more for your friends or family members that you don't live with. But, there may come a point where you simply need to cut down on the time that you spend with some people, if they are having a big negative effect on you reaching your goals.

If you already tried avoiding the subject and it didn't work, then you may have to take more drastic measures. 

It may seem like a harsh thing to do at first and I'm not suggesting that you do this on a whim. Our personal relationships are our most valuable resource, so consider carefully.

But do you really need some of these people in your life if they are that much of a downer?

Maybe.

Maybe not.

You could try avoiding them for a little while and see what happens.

Are you happier overall? Is your trading better?

If the person who is always trying to squash your dream is someone you live with or a spouse or partner and you have already tried all of the above and there is no compromise, then you have a tough decision to make.

Do you make them happy and quit or continue to work towards your dream without them? Only you can answer that question.

Time to put on your big boy/girl pants and decide what is really more important to you.

Be totally honest with yourself and the other person. I personally couldn't be with someone who didn't support my trading goals, but that's just me.

Make New Friends

“You are the average of the five people that you hang out with the most” – Jim Rohn

This really is true. I'm not saying that you should be a snob and only hang out with people so you can get something out of them.

Assuming that you have sorted out the above or are actively working on it, then think about how you can expand your circle of friends that will support you in your trading. When you want to do something, isn't it easier when you have people who are doing the same thing and have the same goals?

For example, I love surfing and I hang out with some of my friends because they like to go surfing. I don't want to be a pro surfer, so I don't hang out with competitive surfers. I like to travel, have a good session and get a cold beer and some good food afterwards.

So those are the surfers I hang out with.

In a similar way, if you want to trade for a living, you should hang out with people who have similar goals or are already professional traders.

That was one of my reasons for starting this blog, a Facebook group and the podcast.

…and it has paid huge dividends.

So figure out how you can make more friends who have similar goals or even better, are already doing what you want to do. This can mean all the difference in the world when it comes to reaching your goals and can help balance out the negative influences in your life.

But Wait…Maybe They Are Right!

Huh? Isn't this supposed to be an inspirational, pro trading, feel good post?

No, I'm not here to blow sunshine up your ass.

This is a practical, actionable and honest post.

So in all fairness, I have to concede that not everyone is cut out to be a trader. My Mom for example, has a very black and white view of the world and wouldn't have the flexibility to adapt to constantly changing market conditions.

…and there is nothing wrong with that.

This is what makes her much better suited to be a school teacher.

That's not to say that she couldn't be a good trader if she put her mind to it and became more flexible.

I sincerely believe that anyone who is of able mind and spirit can become a profitable trader if they truly dedicate themselves to that goal.

When I say that people might be right that you shouldn't become a trader, I'm simply asking your to consider the fact that maybe you would be happier doing something else.

Maybe you don't actually enjoy trading. You might even hate it.

If that is the case, you may be happier and way more profitable doing something that you actually give a shit about instead of learning trading because some guy on the internet (ahem) said that you can make a ton of money at home, in your underwear.

Also be fair to people around you who are counting on you for financial support. Do not quit your job to become a trader if you have not proven yourself yet, that is just irresponsible.

If you really hate your job, consider switching jobs to something that gives you more free time or trading on higher time frames so you don't have to watch the market as much. There are always options.

How Do You Know if Trading is Really For You?

Simply decide.

Yes, it really is that simple. Notice the difference, I said simple, not easy.

If you really want this, just commit. If you don't, then go do something else.

It could take just a few years, like in the case of Chris Capre, or it could take a decade, like with Walter Peters.

But if you are truly dedicated, then you will do what it takes. You will put in the time testing, have the tough talks with people close to you and get properly educated.

What are You Going to Do About It Right Now?!

Anthony Robbins has a great rule that he never leaves the scene of a decision without doing one thing, no matter now small, to move towards his goal.

So I ask you, what can you do right now to minimize the negative effect that people close to you are having?

You can call someone and setup a lunch to sit down and talk with them, cancel a meetup with someone who is always talking bad about your trading or do an online search for other traders to talk to.

Whatever it is for you, do it now!

The post How to Deal With People Who Want to Kill Your Trading Dream appeared first on Trading Heroes.

“There's no such thing as a natural born pilot.”
-Chuck Yeager

Charles “Chuck” Yeager is an American icon. He started his military career as a mechanic. But in September 1942, he entered the pilot training program and became a fighter pilot, flying P-51 Mustangs during World War II. After the war, he became a test pilot, and on October 14, 1947, he became the first man to officially fly faster than the speed of sound.

He later commanded fighter squadrons during the Vietnam War and was featured in The Right Stuff, a book that was turned into a movie, in 1983. He retired from the Air Force as a Brigadier General in 1975.

The point is that Chuck Yeager knew a thing or two about flying. Why am I talking about an Air Force pilot on a trading blog? Because every time I talk to someone who thinks that trading is something they can just “pick up” in a month or two, and start making money right away, I always think of this quote from Mr. Yeager.

There's No Such Thing As A Natural Born Trader

Just like there are no natural fighter pilots, I believe that there are no natural born traders. Sure, some people may be a little better than others in the beginning, but it still takes hard work to become consistently profitable. Early success is often blind luck and gives aspiring traders a false perception of innate talent.

I have never been in a fighter jet, much less flown one. The closest I have gotten is taking the wheel of a single engine plane over Los Angeles, for about 10 minutes.

But I can imagine that doing the right thing in a dogfight can many times go against every single human instinct, just like doing the right thing in a bad trade. How else are they similar?

Here is how I see it…

You Have To Overcome Fear

One of the biggest obstacles to profitable trading is fear. You might be afraid to put on a trade, for the fear of losing money. Then when you do put on a trade and it is profitable, then there is the fear of losing your profits. There is also the fear of losing your entire account (when you over trade).

Just getting into a jet fighter requires overcoming many fears in itself. Then you have to fly directly at other jets who are trying to shoot you down with heat seeking missiles? Not for me, but I'm grateful that some people are able to overcome their fears and do it.

Success in both these endeavors depends on training yourself to do the right thing when you are in a stressful situation. Luckily, trading can be much less stressful than flying a fighter jet, if you get educated. But when you are in a bad trade with too big of a position size, it can feel like a squadron of enemy planes are out to get you. Our natural reaction is to run from fear, but these to activities require that we stand up and face it.

You Have To Know When To Pull The Trigger

If you want to stay alive in a dogfight, you need to be well trained and take controlled risks. When you see your shot, you have to take it. When there is no shot, you need to save your ammunition.

The same thing goes for trading. When you see a setup that you know has a good chance of working, you have to place the trade. If it has a much better than average chance of working, you have to take advantage of the situation and trade a bigger size. If there is no trade, you have to preserve your capital and live to trade another day.

The natural instinct of most people would be to keep firing until they hit something. Which usually results in them hitting nothing and being out of ammo or money. Only the trained pilot or trader knows when it is a good time to take the shot and when to hang back.

You Have To Be At The Top Of Your Game

Do you think that they are going to let someone with terrible eyesight and slow reflexes fly a multi-million dollar fighter jet flying at 1,500 mph? No way.

Pilots need to be in peak physical and mental health to operate these complex and dangerous machines.

In a similar way, trading requires that you are at the top of your game, both mentally and physically. Yes, physically. If you are not in good shape, you will get tired and lose focus when trading.

You have to have confidence in your trading methods and be alert enough to execute them properly.

…and you have to be aware of when you should take a break and not chase bad trades.

Not staying on top of your game can cause your trading account to crash and burn.

Most people do not understand that trading takes intense training and concentration. They think that they just have to click a few buttons and money will appear in their account.

Conclusion

Being a fighter pilot or a trader takes a lot of training and discipline. Nobody is naturally good at them because they go against a lot of our basic human instincts.

So if you think that Forex trading is something that you can learn in a weekend and start making money consistently next week, you have another thing coming.

You won't be a fighter pilot in the Air Force by using a simulator on your computer and you sure as hell won't be a consistently profitable Forex trader by watching some videos on YouTube. However, if you want to make guaranteed extra income to pay some bills, I have just the thing for you.

It's called a second job.

Think about how you make a living now. Did you learn that overnight? Chances are, you went to 2-4 years of college or some sort of trade school to learn that skill.

What makes you think trading is any different?

Being a fighter pilot or a currency trader can sound pretty damn sexy.

But it isn't as glamorous as they make it out to be in the movies…

It takes work. A lot of work.

What do you think?  Are there natural born traders?  Let us know in the comments below.

The post There’s No Such Thing as a Natural Born Pilot (or trader) appeared first on Trading Heroes.

I just got through reading, err, listening to Dr. Wayne Dyer's book Excuses Begone!

Even though this isn't a trading book per se, I believe that it is important to explore different points of view when it comes to examining my own psychology.

I usually get the audio version of a book whenever possible because that allows me to do two things at once.

For example, I listened to this entire audio book over the course of several sessions at the gym.  I have finished other audio books while cleaning my car or sitting on the toilet.

Audiobooks have to be one of the best inventions ever!

But I digress.

If you have never read or listened to any of Dr. Dyer's books before, they can be somewhat hit or miss.  I believe Dr. Dyer to be a very sincere and spiritually aware person and that can lead into some very metaphysical discussions in his books.

Too much of that may turn some people off, myself included, but what I really liked about this book is that he adds those discussions when needed, but he primarily sticks to every day examples in his own life and lists that are easy to follow and relate to.

As the title indicates, the purpose of the book is to get the reader to shed many of the excuses that people make as to why they aren't living at the level they would like to be at.  Dr. Dyer has a list of 18 frequently used excuses that can keep us from getting everything we want in life and how to first identify them as excuses and then dismiss them as being inhibitors to our own success and happiness.

It is amazing how a small shift in thinking can create a huge result.  An example that Dr. Dyer uses from his own life is when he was trying to quit smoking.  He kept telling himself that it would hard to quit.  That is one of the 18 excuses, it will be too hard to do _____.

But then he thought about it for a minute and realized that it is actually harder to smoke than not to smoke. Why?

Because you have to worry about having a lighter, making sure you have cigarettes, smoking in a designated area, carrying gum to cover the bad breath, worry about your fingers turning yellow, disposing of your ashes, disposing of your butts, making extra money to pay for it all, etc.

I am tired just writing that, I can't imagine actually doing it.  This simple shift in thinking helped him stop smoking and he hasn't smoked since.

How may times have we made excuses in our trading and in our everyday lives?  I know I have made my fair share of excuses.  After listening to this book however, I realize that event the most stubborn excuses have no basis in reality and I am free to change my perspective at any time.

Quite a few self development books that I have read just blow sunshine up your ass.  They  try to “inspire” you by getting you all jacked up with positive thinking but as soon as you turn off the audio or stop reading, you are left asking, “But how do I do that?”

This book actually gives techniques on HOW to do it, first by identifying the issues, then telling you how you might be able to deal with each one individually.  I highly recommend this book, it is one of the most insightful books I have ever had the privilege to read or listen to.

Click here to see the complete description.

The post Excuses Begone! – Book Review appeared first on Trading Heroes.