There are 2 types of edges in trading, a trading strategy edge and a trading psychology edge.

You need to have both to succeed.

This post will focus on how to develop your mental edge, which is the more important of the 2 types.

The process of developing a trading psychology edge is simple, but usually not easy.

1. Start trading
2. Identify your advantages and weaknesses
3. Find solutions to your weaknesses
4. Review your results
5. Repeat steps 3 and 4 until you reach your goals

In this post, I'll give you strategies to uncover your trading genius and overcome your biggest roadblocks.

Keep reading to learn the details of each step.

1. Start Trading

This step might seem obvious to some people, but it won't be to others, so I'm going to talk about it.

In order to develop a mental edge in trading, you have to engage the markets on a regular basis.

Even if you only demo trade, taking trades will start to expose your psychological strengths and weaknesses, within the context of trading.

Here are some things that you might discover after you begin trading.

• You're afraid to take trades
• It's easier for you to follow a rules based trading strategy
• You have a tendency to revenge trade
• You're good at riding trends
• You take good notes
• You don't like backtesting
• You get easily discouraged after a series of losses

That's just a short list of what could come up for you.

But you'll only discover these things when you go through the process of taking trades and experiencing the emotional ups and downs that come with wins and losses.

Once you've taken some trades, now it's time to take an inventory of your strengths and weaknesses.

2. Identify Your Advantages and Weaknesses

Awareness is the first step to improving your performance in any area.

How many times have you experienced an event with a group of people and they noticed things about the event that you missed?

This is because they were aware of those things and you weren't.

You also probably noticed things that they didn't.

That shows that we will only notice things that we place our awareness on.

So start a trading journal and write down what you're good at and what you aren't so great at, while you're trading.

This is the first step to full awareness.

The things you do well will give you clues as to what you should probably focus on in trading.

For example, if you find it easy to follow a trend on the daily chart, then you should probably work on trading some sort of trend following, swing trading strategy.

If you lose a lot of money when you day trade, then that's probably something you should avoid.

Maybe you live in a timezone that makes it difficult to trade the New York Forex session. Then you could work on a strategy that trades the Asian session or the London open instead.

Like with any other skill, there will be things that are optional, and there will be things that you have to change.

In the case of day trading versus swing trading, you don't have to day trade. You can trade on other timeframes, so being bad at day trading is not a problem.

But let's say that you have a tendency to over trade and revenge trade.

That's a problem that has to be fixed if you want to become a successful trader.

So find ways to amplify your strengths.

That's pretty easy.

What about your weaknesses?

That will probably take a little more effort.

Here's how to get started with overcoming them.

3. Find Solutions to Your Weaknesses

The great news is that there are a ton of solutions out there to help you overcome anything you're working on.

You simply have to do the work to seek out these solutions and implement them.

I cannot list all of the strategies available because there are so many of them.

But I'll get you started with the 2 general categories.

I believe that there are only 2 parts to the human mind, the conscious and subconscious.

Yeah, you probably knew that already.

However, I feel that many therapists and coaches don't understand how to apply this concept effectively. Many are trained in a particular type of treatment. Most only follow the doctrine of that modality and think that everything can be solved through that lens.

Obviously, the more aware ones understand the limitations of their craft. But there are many who do not.

Not entirely their fault. They don't know what they don't know.

There are a lot of things that I don't know either.

But I do know that it's up you to you to use your intellect to figure out what will work best for you.

That said, let's take a look at a real example of why the conscious/subconscious theory is so important.

I have a friend who used to smoke. If you know a smoker, or you were a smoker, you know that it can be one of the toughest habits to break.

But guess how he quit?

He was on a smoke break at work one day…

He looked the the cigarette, and thought “This is dumb.”

So he quit cold turkey, on the spot.

That's it.

How was that possible?

I don't think that anyone knows for sure, probably not even him. But here's my theory…

There's always a reason why we do things. Our actions fulfill a need or desire in our mind.

Sometimes the cause of a desire sits in our conscious mind. But many times it sits in the subconscious mind.

I believe that the cause of his smoking habit was in his conscious mind. So he could use a conscious thought to change the behavior.

That's why it was so easy.

Now if the source was in his subconscious, even though he knew that smoking was a waste of time and money, it would have been much harder to quit.

So when you look for methods to help you change your behaviors, start with the conscious methods first because those will give you the easiest wins.

But if you cannot change with those methods, then it's time to go deeper and dive into your subconscious. 

It's not always possible to figure out if a behavior is caused by a subconscious or conscious source. It can also be difficult to figure out which part of your mind a treatment will work on.

That's OK.

Do your best and you'll get a good feel for it after trying a few different things.

Conscious Mind Methods

Methods for changing thoughts in your conscious mind usually involve mental visualization exercises, repeating affirmations or visual cues.

• Neuro linguistic programming (NLP)
• Mind Movies
• Visualization
• Vision boards
• Mantras
• Talk therapy

Subconscious Mind Methods

Changing your subconscious mind is a new concept to many people and it's probably new to you too. The reason why this works may not be obvious at first.

You're basically digging down into your subconscious and bringing the causes of your negative behavior to the surface. When you do this, it's much easier to resolve the issue so the symptoms never come up again.

This can be very powerful stuff and you really have to experience it believe it.

• Subliminal recordings
• Hypnosis with a therapist
• Cloud Sound Therapy
• The Emotion Code
• Clairvision

Again, this is just a short list of what's out there. But it will give you a great starting point.

4. Review Your Results

Now it's time to see how you've done.

Sit down on a Sunday morning with a coffee (or your favorite drink) and review your trading journal again.

Did the methods you used work?

If yes, then great, you're done! You can stop reading right now.

However, it's more likely that you still have things that aren't completely resolved.

That's just how it works. 

Unfortunately, modern mass marketing has given us the impression that there's always a pill or hack that we can use to instantly achieve any outcome that we want. 

In reality, that's rarely the case.

It's like mining. Miners almost never hit gold on the first try.

They usually have to do a lot of homework and drill several holes before they find a workable mine.

So put down your discouragement and dig your heels in for the long haul. Your transformation could be fast, but it's more likely that it will be a process.

That's how your great grandparents did it, along with every generation before them.

The idea of instant results is a new and often unrealistic ideal.

5. Repeat Steps 3 and 4 Until You Reach Your Goals

Instead of getting discouraged, do this:

1. Congratulate yourself for taking action.
2. Celebrate what did work. It's very likely that you made some progress, no matter how small.
3. Look for the next thing to try. Assuming you gave the first thing an honest try, it just might not have been a good fit for you.

I've had many cases where this has happened in my life.

For example, back in the day, I used to listen to a lot of Tony Robbins recordings. He's great, I have nothing against Tony.

However, I put too much faith in the idea that he had all the answers. I figured that since he had so many high-profile clients, he must have a solution that could help me.

So I would listen to his tracks over and over, and implement the strategies…over and over.

…and they did help a little.

But they didn't create the big shifts that I was looking for.

Instead of continuing to do something that didn't work, I should have reassessed my results after a few weeks, then tried something else. I just didn't know any better back then, and I'm OK with that.

It literally took me years to figure out that I needed to branch out and try other things.

I want you to learn from my experience.

If you didn't get the results that you expected, then don't get down on yourself.

Remember that one of the the most powerful tools that you can have in your trading toolbox is self-forgiveness.

It will take as long as it takes for you to become successful at trading. So get back up on your horse and keep going.

Of course, there can be the tendency to have “shiny object syndrome,” where you keep hopping to the next new thing. So you have to be honest and ask yourself if you've given the method an honest try, before moving on.

Only you can answer that question. 

Final Thoughts on Developing a Trading Psychology Edge

Most new traders think that the right trading strategy will make them rich.

Experienced traders know that having the right mindset is the real key to success.

A solid trading psychology will allow you to overcome losing streaks, keep expanding your knowledge, and persevere when most people would give up.

Implement the tips in this post and you'll start to see positive results.

Amplify your strengths, heal your weaknesses.

You can do it.

The post Develop Your Trading Psychology Edge in 5 Steps appeared first on Trading Heroes.

Your mindset is the biggest determining factor in if you will succeed at trading or not. It trumps any trading system or indicator.

The mindset of a successful trader is developed through a process of repetition, review and continual improvement. A trader must be willing to keep taking trades, review them in a journal, then take an honest look at what improvements can be made. In addition, traders must continually work on eliminating negative habits and psychological programming. 

There's a lot to unwrap here, so let's dig into the details.

I'll go over each of the elements to show you how you can start building the mindset of a professional trader.

Practice, Practice, Practice

The first important concept to understand when learning to develop a trader's mindset is that you have to be willing to practice your craft.

Just like boxers go to the gym and runners hit the track, traders have to practice their trading strategies to keep their skills sharp.

There are a couple of ways to do this.

First, you can use backtesting software to download historical data, replay the data and take simulated trades. This is similar to a NBA player practicing his jump shot. 

You can practice your trading methods in simulation when you aren't trading, when the markets are closed, or when you don't have an internet connection.

If you can get just a couple more hours of trading practice per week, imagine how much that can compound your skills over time.

Next, you can also open a demo account and take demo trades alongside your live trades. There might be trades that you don't want to take in your live account, but you can still take them in your demo account, and learn from them like they were live trades. 

Again, this gives you more repetitions and more opportunities to fine tune your pattern recognition skills.

Another benefit of using a demo account is that it helps build your intuition.

Not all traders should rely on intuition to make trading decisions.

But tracking your demo trades will help you understand if you can trust your intuition, or if you should just stick to your system rules.

Break Through Your Drawdowns

I have a more risk adverse personality, so I've never blown out an account. That might sound like a good thing, but my type of personality profile also comes with a few downsides.

The biggest downside is that I used to shy away from taking trades, especially in a losing streak.

After a lot of review, I realized that this is the opposite of what I should be doing.

Let me clarify that…

I'm not saying that traders should keep taking trades, if their strategy isn't working, or they are not focused.

…or worse yet, if they don't have a strategy at all.

However, if you're confident that you have an edge, then you should keep trading. By definition, the only way to end a losing streak and make up for the losses, is to keep trading and keep applying your edge.

This can seem like an insurmountable task and it might even seem hopeless…or even a little scary.

But it must be done. 

You must embrace the suck.

If don't want to lose more money, you can stop trading your live account and open a free demo account.

Do what you have to do to keep trading.

Yes, it's uncomfortable because you could keep losing.

When you're in this situation, it's also helpful to ask the following questions:

• Am I attaching too much of my ego to my losing trades?
• Am I insisting on being right, at the cost of being profitable?
• Am I too worried about losing?
• Am I beating myself up after each loss?

If you answer yes to any of those questions, develop the awareness of when you're doing those things.

Work on hitting the “mute button” on those thoughts and learn to review each trade as objectively as possible.

You will learn more about yourself and your trading strategy from pushing through a drawdown, than any other trading activity I know of. 

Once you know that you can successfully overcome a drawdown however, that will give you a ton of confidence that you'll be able to do it again in the future.

Keep a Trading Journal

In order to understand what you're doing right and what you need to improve on, a trading journal is essential.

This can be a simple notebook, Evernote or NakedMarkets.

Regardless of which method you use, just be sure that it works well for you and that it's simple enough that you can fill it out quickly. When a trading journal is too complex, you are less likely to fill it out and won't get the benefits.

Most trading journals have the basic information about each trade.

But also consider including these elements:

• MaxR
• Flash Cards
• Missed trades
• Trades you were considering taking, but didn't
• Profit/loss calculated in multiple of risk

Adding these elements to your journal can help you progress significantly faster than if you don't track them. Review your results weekly and take an honest look at how well you're trading.

Most aspiring traders I've seen don't fill out a trading journal.

This is like being an Olympic runner, but not recording your lap times.

You must track your results, in order to improve them.

Improve Your Trading

Once you've recorded your trades in your journal, now identify areas where you can improve.

Here are some staring points that you should explore:

• Should you give your stop losses more room?
• Are you cutting your winners short?
• Do you move your stop losses?
• Are you trading at the ideal times of day for your strategy?
• Should you be more selective about your trades?
• Are you afraid to take trades that would have worked?
• Do your entries differ from how you backtested your strategy?
• In hindsight, would you have still taken every trade you took?

Even a very simple trading journal will allow you to go back and review these questions.

Again, try to review each trade as objectively as possible and look for common mistakes or potential optimizations.

Upgrade Your Mindset

Last, but certainly not least, figure out how to your continuously upgrade your mindset.

Scientists used to believe that our brains could not be changed after a certain age.

More recent studies have proven that this is not true and we can form new brain connections and pathways throughout our lives, an ability called neuroplasticity.

So don't feel like you're stuck with what you currently have. It is possible to change how your mind works. You just have to be willing to put in the work to make those changes. 

Here are some mindset challenges that traders often face:

• Hesitation when taking a trade
• Discouragement during a drawdown
• Blaming others for trading losses
• Self-pity after a losing trade
• Not forgiving yourself after a mistake
• Revenge trading
• Getting greedy on a trade: either targeting too big of a take profit or not using stop loss

All traders have struggled with at least one of these issues, at some point in their careers. On deeper levels, most professional traders still face these challenges. They have just learned to control them better than amateur traders.

You can read these books and see that for yourself.

So how do you fix these issues?

Here's a simple exercise that you can do to start upgrading your mindset.

Human psychology is a very complex and nuanced topic, so I cannot give you all the answers in one short blog post.

But this can put you on the right track to understanding what will help you.

First, write down the behaviors that you feel are having a negative impact on your trading. Then focus on each one individually.

For example, let's say that the first item on your list is: Blaming others for your trading losses.

This might include:

• Blaming your broker for hunting your stops
• Blaming your family/partner for not allowing you the time to trade
• Blaming your job for not having enough time to trade
• Blaming an educator for not teaching you properly

Once you have your list, first ask yourself if the opposite could be true.

Is it remotely possible that your broker is NOT hunting your stops?

Could it be that you really do have enough time to trade, but you're spending too much time watching Netflix?

Take an honest look at the opposite of your belief.

What do you find?

Next, do the “Why Exercise.”

Keep asking yourself why, until you cannot ask come up with any more answers, or you come to an important realization.

In this example, you might say something like this:

• Why do I blame others for my trading losses?”
  • Because everyone is out to get me
• Why is everyone out to get me?
  • Because the world is a harsh place
• Why is the world a harsh place?
  • Because that's what my parents taught me
• Why did your parents teach you that the world is a harsh place?
  • Because that was their experience growing up during the war

Ah-ha!

So in this example your tendency to blame others, could actually be coming from your parent's experiences.

Not directly from your own experiences, or because people are intentionally sabotaging your trading.

Sometimes, just the realization of where your beliefs came from is enough to change some behaviors.

So that's where you should start.

However, there can be beliefs that are so deeply rooted, that they cannot be fixed through realization alone.

If you want to dig deeper into possible causes of these roadblocks, and how to fix them, read this post on advanced trading psychology.

Conclusion

So if you're struggling with figuring out how to be consistently profitable, start implementing the actions suggested in this post.

Remember that learning trading strategies is easy.

Developing the mental toughness to overcome drawdowns and internal doubt is the challenging part. This is the reason that most traders quit. 

But if you keep at it long enough, I believe that most people can figure it out.

The post How to Develop a Trader’s Mindset for Success appeared first on Trading Heroes.

Most traders don't understand the importance of trading psychology until they get so frustrated with system jumping, that they're forced to review other options. That's when they usually realize that trading psychology is the the real key to success in trading…or they quit altogether.

So if you want to save yourself some time (and headache), implement these 9 trading psychology tips.

I wish that I knew these secrets when I started.

1. Focus on How You Handle Losing Trades

Many traders don't want to even look at their losing trades.

But your losing trades are the key to your success in trading.

First, ask yourself how you feel about your losing trades. Do you avoid them like the plague? Do you get mad?

…or do you dig into them every week so you can learn something from them?

If you dig a little deeper into your psychology, do you take losing trades personally?

Is that because you're risking too much money? Or because you feel that it's an insult to your intelligence?

…or something else?

You will only start to improve when you can face your losing trades and learn from them.

Who knows, maybe you are being hard on yourself for no reason. Those losing trades might actually be high-quality trades, that just happened to lose. 

2. Ask Yourself Why You Are Trading

A lot of people get into trading to make a quick buck.

But as you probably know by now, trading is anything but that.

So ask yourself why you are really attracted to trading. 

I'm attracted to trading because I'm fascinated by the psychology it takes to succeed, and the creativity that it takes to develop new trading strategies.

If you think that you will make a fortune in trading overnight, you're in for a big surprise. There could be a fairly long road ahead.

You will only be able to stick with it, if you have a reason to keep going. 

So be honest with yourself.

Why are you really into trading.

Ask yourself why 6 times…

• Why do I want to become a successful trader? To be able to travel.
• Why do I want to travel? To create memories.
• Why do I want to create memories?
• Etc…

You might be surprised at the final answer. 

3. Evaluate How People Around You Influence Your Trading

As the saying goes…

“You are the average of the 5 people you spend the most time with.”

— Jim Rohn

So take a minute to consider the people you hang out with on a regular basis. They don't have to be traders, but it's probably a good idea to hang out with happy people, who are successful at what they do, and encourage others to be the best they can be.

When you hang out with fun, successful people, then it's very likely that you'll become one too. 

I'm not judging. Some people choose to complain and play the role of the victim and they have every right to feel that way. It might sound weird, but they do get something out of that state of being.

But since you found this website, you probably want to take control of your life and not just complain about it.

Therefore, take a good hard look at the people you spend the most time with.

If they aren't the type of person that you admire, then consider making some new friends.

You don't have to stop seeing these people. However, you may want to cut back on your time with them.

It may sound harsh, but it's how things work. If you aren't happy with your life now, then you need to make some changes. 

4. Can You Visualize Yourself as Successful?

You might think that all people can visualize success themselves as successful.

Not true.

If you can see yourself as successful, then consider yourself lucky.

Others have trouble visualizing success.

I was one of them. 

When you cannot visualize yourself as a successful person, then there's a deeply rooted belief that's blocking this ability to visualize. 

As I wrote about in this blog post, the source of this blockage is always trauma.

There's something that happened to you that is creating the limiting belief that you cannot succeed. Read that blog post if you want to learn more.

The list of possible things is too long to cover here, but that post does a good job of going through what I discovered about myself.

You can also consider using a Mind Movie to help you visualize your success.

5. Celebrate Your Wins

Occasionally, a trader will tell me: “I only made 3% last year.”

I usually do a double-take and think…”wait…what?!”

There are fund managers out there who make millions of dollars a year, but don't return that much for their fund.

So stop downplaying your results. 

Yes, if you are trading a $5,000 account and you make 3%, then that won't be enough to make a living.

But it's a great start. 

Over 90% of traders lose money and most blow out their accounts. So if you're profitable, it's just a matter of improving your skills. 

In most cultures in the world, we are taught to give away our power and sovereignty.

We are taught not to question doctors, professors, religious leaders and anyone with letters after their name. But more and more people are discovering that these professionals only know part of the picture.

People like you and me can have the power to figure things out on our own. We should certainly consult these professionals because they have a lot of knowledge, especially in certain specialized areas.

But we should think independently and have the final say in how we live our lives. 

The same thing goes for trading. Stop giving away your power by downplaying your results.

If you were profitable last year, isn't it possible that you can be more profitable this year?

Of course it is. 

6. Understand Your Negativity Bias

Most people in the world have a negativity bias.

They look for what could go wrong, before anything else.

…and this behavior is perfectly natural.

In previous times, we frequently had to defend ourselves against natural disasters, wild animal attacks and invaders from other tribes. There was a lot to be worried about.

Modern societies have shielded most of us from these threats nowadays. But the tendency to look for danger first, still exists in our collective subconscious.

So when we get into trading, we start telling ourselves things like:

• This trade probably won't work out
• I'll take my profit right now because the trade will probably go against me
• I think my broker is running my stops
• That trading system is a scam
• I need to get more education before I start trading
• …and on, and on…

Again, this is natural…and is also why so many traders fail. But now that you're aware of this, it's up to you to fix it.

The first step is awareness. Become aware if you naturally gravitate to a negative outcome or a positive one.

If you are naturally negative, start asking why. Is there a reason that you can pinpoint? Can you work on resolving that issue?

Of course, being too positive can be a downside too. It's overall better than being negative. But ask yourself if you're being overly optimistic, which can also cloud your judgement.

You probably won't be able to solve these issues right away. But stay aware and the answers will come.  

7. Habit and Process are More Important Than Trading Systems

New traders think that a trading strategy alone will make them rich.

This is a perfectly natural assumption.

Trading strategies are deceptively simple. Just follow a few rules and you're a billionaire.

…or so the theory goes. 

But there's so much more to it than that.

What's actually more important are your trading habits and processes.

When you develop a habit, you'll put in the consistent work that's required to:

• Test trading strategies
• Review trades in your trading journal
• Get more education

Building a habit isn't easy, but it's a requirement for success. I would recommend reading The Power of Habit to get started with building your positive habits. It gives you a step-by-step process to build a positive habit, or get rid of a negative one.

Speaking of process…

Having a process for improving your trading will help you:

• Figure out exactly where your trading is going wrong
• Test a strategy thoroughly before risking real money
• Understand if your psychology or strategy isn't working

When building processes, it's helps to map out your workflow on a sheet of paper. Create a flowchart that will help you understand how you'll manage each step in your trading.

Consider having a roadmap for your testing, live trading and journaling.

…or put them all together in the same flowchart. You can include things like:

• When you'll journal your trades
• A reminder to check your trading rules before entering a trade
• Your definition of a successful backtest
• How long you'll demo trade a strategy before you trade it live

8. What's Your Real Passion?

Do you have to be passionate about trading to succeed?

I believe that you do.

But if you aren't passionate about trading I also believe that you can use another passion to drive your desire to succeed in trading.

For example, let's say that you are passionate about cleaning up all of the plastic in the environment. Not a whole lot of money to be made in cleaning up plastic.

…as far as I know.

However, if you can learn trading and have that as your primary income, you can use that money to start doing something about all of the plastic in the environment. At the very least, you can start contributing more to organizations that work on the problem.

Either way, put some real passion behind your trading. Learning to trade is not easy and you'll need all the reasons you can get to keep going. 

9. Remove Unnecessary Stresses on Your Trading

Many people come to trading because they hate their job, or they want to make money quickly. So they put undue pressure on themselves by quitting their job, or trying to turn $100 into $500,000 in 6 months.

There are some endeavors where you can follow a certain plan and make money in a reasonably predictable amount of time.

Trading is not one of those businesses. 

Success in trading relies heavily on having the right mindset, a mindset that most of us aren't born with. 

So when you quit your job or try to make a crazy return on a small amount of money, you put unnecessary pressure on yourself and amplify the negative aspects of your innate psychology.

If you hate your job, consider changing jobs. Consider working odd jobs that don't require a lot of time or mental investment. 

This will take the pressure off your trading and allow you to progress faster. 

Conclusion

So those are 9 trading psychology secrets that I wish I knew when I first started trading. In the beginning, it was all about trading systems and making the most money possible.

Part of that is what I was taught and part of that was because I had blinders on.

If you want to speed up your development as a trader, learn from my mistakes. Prioritize trading psychology.

Trading systems are secondary.

Very secondary. 

The post 9 Trading Psychology Secrets I Wish I Knew Earlier appeared first on Trading Heroes.

Daily positive affirmations are short statements that help you become the trader (and person) you want to be.

Affirmations are a powerful tool that's used by successful people in business, pro sports and many other professions.

This post will show you how to create empowering positive trading affirmations of your own, or you can simply use one of the 19 affirmations listed at the bottom of this page. You will also learn how to use them to get the best possible results.

How Affirmations Work

Affirmations are conscious phrases that gradually overwrite your subconscious programming.

There are many external influences that have contributed to your positive and negative subconscious programming. As a result of these influences, there are things that you have been telling yourself over and over, for years.

These statements get deeply engrained in your subconscious and become part of your identity and reality.

Here are some positive examples:

• “I'm capable of anything.”
• “I always find a way to make it work.”
• “I have many wonderful friends.”
• “I always find the perfect teachers when I want to learn something.”

If you keep telling yourself these things over and over, you'll believe them.

…and they ultimately become your reality.

These programs have been running deep in our brains for our entire lives, and many times we don't even realize that they are there.

The only clue that there's a negative program running, is when we aren't getting what we want in life. This is what forces us to stop living on autopilot and be more mindful of what's going on.

Positive affirmations help us reverse our negative programming.

Before we get into the process of creating and using daily affirmations, remember that affirmations don't work instantly.

It took you years to create your negative programming. So it could take anywhere from several months to a couple of years to reverse that programming.

Be patient and consistent. 

3 Steps to Writing a Powerful Trading Affirmation

1. State it in the Present, as if it has Already Happened

Your mind cannot tell the difference between something you vividly imagine and something that has actually happened.

So take advantage of this fact. 

If you keep telling yourself that you're already a successful trader, you will feel successful on the inside.

That becomes your identity.

From there, your brain will find ways to align your internal feeling with your external reality.

But isn't this lying to yourself?

Not at all.

You have the ability to become a successful trader.

Unless someone has a major handicap, I believe that anyone can become successful at trading. I've seen people from all walks of life become consistently profitable traders.

Therefore, that ability is already inside you. It's up to you to choose to embrace that potential, or reject it. 

By creating positive affirmations, you choose to develop that ability and acknowledge your full potential. 

So when you write an affirmation, word it in the present, and as if it has already happened. You can see a few examples at the bottom of this post.

This will trigger your brain to see this as your new reality and make it easier to overcome the inevitable roadblocks along the way.

2. Be Positive, Short and Specific

Next, keep your affirmations short, stated in the positive and as specific as possible.

Why state it in the positive?

Your brain automatically removes the word “not” from most sentences. So the affirmation “I will not let my trades affect me emotionally,” registers in your brain as: “I will let my trades affect me emotionally.”

This is why it's so important to state your affirmations in the positive. 

When you keep them short, they are easy to remember and more likely to stick in your brain. Bonus points for creating affirmations that rhyme. That makes them even easier to remember.

Then make them as specific as possible.

A specific affirmation brings up a more vivid image in your mind and makes it more real. 

3. Include Action and Emotion

Finally, emotion is the key to making this all work. 

You can make almost anything happen, if you want it enough. This means putting all of your desire and passion behind it.

So include action and emotion words. 

It also helps to start with the phrase “I am” because that programs your identity.

Alright, enough with the theory. Here are some examples…

19 Positive Affirmations for Traders

1. “I am relaxing and having fun after I place trades.”

There can be a strong tendency to write a negative affirmation like: “I won't overtrade.” Using a positive affirmation puts you in the state of mind that you really want to be in, instead of stressing about overtrading.

2. “I am happily driving my Tesla Roadster on the Pacific Coast Highway, with the top down, at sunset.”

If you want a certain type of car, then painting a scene like this can help you imagine yourself in the car.

3. “I am excited to fill out my trading journal every week because it makes me a world-class trader.”

Make filling out your journal a positive event, not a chore.

4. “I am enjoying the view from the custom-built home that I designed with my wife.”

Think of what you want to create with your trading profits and how you will enjoy your creations.

5. “I am excited about following my trading rules because the profits give me freedom and security.”

Instead of beating yourself up about not following the rules, remind yourself what happens when you do.

6. “I am curiously watching the charts and only take the very best trade setups.”

This is a much better way of saying “Don't take bad trades.”

7. “I am enjoying the freedom, abundance and fun that comes with professional trading.”

After all, this is what you really want to get out of trading right?

8. “I am grateful that I effortlessly pay for every expense and luxury in my life.”

Instead of saying, “All of my debts are paid off,” an affirmation like this will help you be more relaxed with having abundance through trading.

9. “I am excited about learning new trading skills because they pay for my adventures.”

Education is very important in becoming a successful trader and this affirmation can remind you to keep learning.

10. “I am crying tears of joy when I receive thank you letters from the kids I help in Peru.”

Giving to a charity can be a great way to spend your profits. Connect to that emotion of helping others.

11. “I am extremely grateful for all of my profitable trades.”

This statement can help you focus on being grateful for what you have. Some traders may write something like: “I'll do my best to not execute bad trades.” Then of course, your brain excludes the “not” and you continue taking poor trades.

12. “I am lovingly supporting my children with trading and helping them develop to their fullest potential.”

What are your biggest reasons for trading? If one of your reasons is to give your kids a great life, then this is a fantastic affirmation to use.

13. “I am running 5 miles effortlessly because of my fun workout routine.”

Exercise is very important to successful trading, especially since we do a fair amount of sitting in front of the computer. Having an affirmation like this will remind you to get some exercise.

14. “I am confidently checking my bank account balance after my monthly deposit of $100,00 in trading profits.”

Make the number specific and make it clear that you withdraw profits on a regular basis.

15. “I am feeling completely in sync with the primary trend and effortlessly take trades in that direction.”

If you are a trend trader then this is a great affirmation to use.

16. “I am feeling extremely relaxed as I fly first class to my vacation in Jamaica.”

First class…Jamaica…very specific.

17. “I am attracting abundance into my life, in a way that's the best for everyone involved.”

There can be a tendency to think that abundance in your life means less for others. When you phrase the affirmation in this way, it removes this mental roadblock and helps you allow more prosperity to come into your life.

18. “I am energized by my exhilarating daily morning routine.”

Some people might create an affirmation that forces them to get out of bed in the morning to do their morning routine. But when you phrase it like this, you are more focused on the benefits…and less on the early wakeup.

19. “I am feeling centered and make great trading decisions because I meditate in the morning and evening.”

Meditation is another activity that can have a huge positive effect on your trading, but it can seem like a chore in the beginning. An affirmation like this can get you excited about doing it.

Take Action Now

Now it's your turn!

Create your own positive affirmations or use a few from this list. Regardless of which affirmations you use, write them down and keep them somewhere that you'll have easy access to them.

The key to success is to keep your list manageable. I would suggest starting with 3-5 affirmations and see how that feels. If you can manage that for a couple of weeks, then consider adding a few more. 

What you don't want to do is add a ton of affirmations, then get discouraged from doing your daily routine because there are so many affirmations.

Keep it simple.

Repeat your affirmations at least 2 times per day, every day. The most powerful time to recite your affirmations is just before you go to sleep. This is because while you are sleeping, your mind tends to replay the last thing you saw before you went to bed.  

Remember that this is a marathon and not a sprint. Keep doing this on a regular basis you will start to see changes over time.

If you use positive affirmations for awhile, and only see minimal changes, then consider going deeper with advanced trading psychology.

Do you have any awesome affirmations to add to the list? Share your affirmation in the comments below…

The post 19 Powerful Positive Affirmations for Traders appeared first on Trading Heroes.

Almost all of our negative behaviors are the result of habits that we have built up over the years. These are the gremlins in our trading psychology that cause us to lose money.

The older you are, the more deeply engrained those habits become.

But can you really teach an “old dog” new tricks?

Of course.

It has been proven that a healthy brain has neuroplasticity, or the ability to change. One of the most effective ways to create this change is to leverage the power of rewards.

In this post, I'll share with you why rewards work and and the exact process that can be used to achieve your trading goals. Then I'll give you some specific tools that can help you stay on track with your goals and rewards.

Why Rewards Work

In a word, rewards work because of:

Dopamine

Your brain feels good when it gets a rush of dopamine. Or more accurately, you feel more motivated to do a certain action when you get a hit of the big D.

People usually talk about dopamine in the same sentence as sex, drugs and/or rock and roll…

But dopamine isn't only released during pleasurable experiences. It is also released during stressful experiences and during seemingly mundane events like checking your Facebook feed.

This means that your brain can actually feel good, even when you're engaged in behaviors that are not good for you.

Over time, you can become addicted to these states because they make you feel good on a subconscious level and…

Violà, you have now formed a habit.

…and they are a bitch to kick.

That's why we have all worked with someone who goes cray-cray when the printer jams…

…or we have a friend who looks at two hot naked women covered in ice cream and thinks twice about joining the threesome because of the calories in the ice cream.

These people actually feel better when they are worried or stressed. 

We all do this to a certain degree.

So in order to consciously reprogram ourselves to do the actions that will help us reach our goals, we want to engage the positive powers of dopamine.

Step 1: Create a List of Things That Will Make You Happy

Some people recommend setting your goals first, then attaching rewards to them.

I personally believe that it's much more practical (and fun) to start by creating a list of things that you would enjoy having or doing. 

This detaches the goal from the reward and allows your mind to wander and be creative. When you are worrying about how you will achieve your goal, you can get bogged down in limited, overly-logical, left-brain thinking.

…and that can limit your ability to get in touch with the rewards that will truly make you happy.

Having trouble coming up with a list? Think back to when you were a kid and all the fun stuff you did, or wanted to do.

Talk to your inner child.

If you find yourself trying to decide if you should add a reward to your list or not, then it's an automatic no.

Actually, it's fuck yes, or no. You should be super excited to earn your rewards, so you will do whatever it takes to overcome the inevitable obstacles that will get in your way.

Your rewards don't have to be material objects or expensive. They can be simple pleasures that give you the vital dopamine hit that you need to stay motivated.

For example, one of my favorite rewards for working out and meditating in the morning is to sit in the jacuzzi for a few minutes. I really enjoy it and that alone will motivate me to do my morning routine.

I have found it useful to break up my rewards into 5 categories:

• Simple
• Small
• Medium
• Large
• Baller

You might want to use fewer categories…or maybe add more. Figure out what works best for you.

In the next sections, I have provided some examples of rewards that might fall into each category. I have also listed some rough dollar costs for each category, but that will be relative to your income level, so adjust accordingly.

Use this list as a starting point to create a rewards list that gets you excited to reach your goals. 

Simple Rewards

First, start with some simple rewards that will be used to reinforce your daily habits.

I notice that a lot of goal setting programs don't encourage you to set rewards at this “low” of a level. But when you start to reward yourself for as many positive actions as possible, that's how you can build momentum very quickly.

Here are some ideas for simple rewards. Generally the price will range from free to a few dollars.

• Relax in the jacuzzi or sauna
• Order your favorite tacos
• Go on a bike ride in a scenic place
• Quit work on time, lie in the sun and read a book
• Watch that movie that you have been wanting to see on Netflix

Small Rewards

Next, create a list of rewards that will apply to slightly larger goals. If I were to put a price on these rewards, it would range from free to around $25.

This could include things like:

• Buy that new t-shirt that you have been wanting
• Take the day off and go for a long hike
• Get that Kindle book that you have been wanting to read
• Share a nice bottle of wine with some friends
• Try out some blue light blocking glasses to reduce eyestrain during trading

Medium Rewards

Now this is going to be the bread and butter of your rewards list. The previous categories were fun little ways to keep you motivated, but this is where the rewards start to get exciting. Consider rewards that range from $25 to about $200.

• Take your family out to dinner at a restaurant that you have never been to before
• Make a generous donation to your favorite charity
• Buy new running shoes
• Go ziplining
• Get a 90-minute massage

Large Rewards

These rewards are for your primary goals, the goals that you will strive for every quarter or year. When you reach these goals, you may want to reward yourself with something between $200 and $2,500.

• Get a new Mac trading computer
• Stay at an ice hotel
• Buy a new surfboard
• Finally get some Bose noise-cancelling headphones
• Take your family on a weekend vacation

Baller Rewards

Here are some ideas for when you reach your life's grandest goals.

• Buy a plot of land for your dream home
• Drop a down payment on the Tesla Roadster
• Stay on Necker Island
• Rock a new Panerai
• Get an Icon A5

Step 2: Now Set Your Goals and Attach Those Rewards

In China and Japan, the number 4 is considered bad luck because it has the same pronunciation as the word death. Hotels skip the number 4 when numbering floors, athletes avoid choosing it as their number, etc.

It's like the number 13 in other countries.

I mention this because it will help your remember not to set more than 3 primary goals at a time. Obviously, you won't die if you set more than 3 primary goals.

…and there's no such thing as bad luck.

But it could mean the death of your goals if you stretch yourself too thin. The fewer primary goals you focus on, the more likely you will be to accomplish them.

So start from the top down and work your way backwards.

Remember that you will work harder for goal if you have a big enough “why” behind it. So don't just focus on reaching a goal because other people will think that it's cool.

Ask yourself why it's meaningful to you.

Then state all of your goals in the present, as if they have already been achieved and state everything in a positive tone.

Lifetime Goals (Baller Level Rewards)

Here's where you go big. Some of your lifetime goals may include things like…

• I have a lot of fun working with the people at the hedge fund I started
• I am grateful for all of the time that I can spend with my young children
• I get a lot of satisfaction out of building schools in developing countries around the world
• I enjoy living in my custom-built home
• I loved living in Tuscany for a year

Primary Goals (Large Rewards)

Now set the primary milestones that you want to complete within 3 months (there's that number 3 again). These are the tangible steps that will get you closer to your lifetime goals.

• I trade for a hedge fund (or have amazing investors)
• I had a great trading year, with only 2 losing months
• I journaled all of my trades, on time, for 90 days straight
• I journaled all of my missed trades for 90 days straight
• I created an automated trading program that makes consistent monthly gains

Secondary Goals (Medium Rewards)

These goals will help you reach your primary goals. They might include things like…

• I backtested the _______ trading strategy on the 30 currency pairs that I trade
• I learned so much by going back through all of my trades from the past year
• All of my trades during a 1-week period have a rating of 9 or better
• I studied 5 trading strategies that are similar to the strategy that I'm currently trading
• I signed up for a course to learn a new trading strategy

Action Steps (Small Rewards)

These goals roll up to your secondary goals. You might consider goals that look like this…

• I finished backtesting the EURUSD daily chart with the ______ trading strategy
• I talked to at least 20 potential investors this week
• I worked on my trading robot for at least three hours this week
• I setup Evernote to use as a trading journal
• I learned how to use Forex Tester

Daily Tasks (Simple Rewards)

Now break your action steps further into daily tasks.

• I update my trading journal on Fridays
• I scan for potential trading opportunities on Saturday afternoons
• I meditated this morning
• I checked the charts every 4 hours today
• I checked today's news events

Once you have these goals set, then assign a specific reward to each one. Make this process fun and you will be much more likely to do it.

Step 3: Remind Yourself of Your Rewards and Goals

Once you have your goals and rewards written down, it can be easy to breathe a sigh of relief and set your list aside…never to be seen again.

Just like your New Year's resolution to go to the gym 5 times a week.

So now you need to create mechanisms that will remind you of your goals and rewards on a daily basis.

Here are some of the 3 most effective tools that I have found to regularly remind myself of my goals and rewards.

Start a Success Journal

First of all, forget the idea of using an app on your computer or smartphone to track your goals and rewards because…

…that bastard is trolling me on Twitter again.

…yay, someone just liked my last photo on Instagram.

…wait, my wife is calling.

There are just too many potential distractions on your phone. In addition, for many of us, our habits make us check certain apps as soon as we pick up our phones.

You pick up your phone, and 45 minutes later you realize that you have been scrolling through Facebook the whole time, when you were supposed to be reviewing your goals.

When you use a paper notebook and pen, this forces you to get away from your electronic notifications and focus on the task at hand.

It has also been proven that writing can help you retain more information and make you 33% more likely to reach your goals, compared to typing on a computer.

However, setting up and tracking your goals and rewards can be pretty daunting because there are so many pieces to track.

The best solution that I have found is called the Best Self Journal.

It's not quite perfect, but it is the most useful journal that I have discovered for tracking goals and rewards.

Learn more about the Best Self Journal here.

Create a Mind Movie

A Mind Movie is a vision board on steroids.

This website allows you to easily create goal visualization videos by uploading pictures, music and videos. You can also add your own text to each segment.

If don't have any of these assets, then you can choose one of their stock photos, videos or music. You can even insert YouTube videos, as long as they are licensed for public use.

When you watch your Mind Movie daily, it can help you stay excited about your goals and rewards.

The fact that there are moving pictures and music makes the movie much more engaging than a static board that hangs on your wall and is much more likely to activate an emotional response…which is ultimately what you want.

To learn more about Mind Movies, go here. I use it to create movies that get me excited about my goals and I watch my movies at least twice a day.

Here's a demo video. Yeah it's cheesy, but it gets the point across.

I'm sure you can make movies that are way cooler

You can also make your own movies with something like iMovie.

Regardless of what you use, pick something that works for you and just get started.

Keep Your Primary Goals Where You Can See Them

Finally, it's useful to post your primary goals in places where you will see them all the time. Simply write your primary goals on a notecard or sticky note and post it in places like:

• The front of your notebook
• Your bathroom mirror
• Your computer monitor
• The wallpaper on your phone

This will build a small habit of constantly thinking about your goals and help you focus on what needs to be done to achieve them.

Final Thoughts on a Trading Rewards System

It can be tough to maintain a rewards system in the beginning. You may go through a few starts and stops before you get it to stick.

Many of our negative habits have been built up unconsciously over a lifetime. It will take a little time to overcome them and install those good habits.

So be patient, and forgive yourself if you get off track.

Then jump back on the horse and start again.

What are some of your favorite ways to reward yourself for a job well done? Share your best ideas in the comments below. Someone else might like it too

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The post How to Create a Rewards System to Achieve Your Trading Goals appeared first on Trading Heroes.

Forget about trading systems for a minute. Let's talk about the other keys to successful Forex trading.

If you listen closely, you will hear successful traders mention these things. But many times, they are not emphasized nearly enough. So in this post, I'll highlight the five most overlooked keys to success in trading.

1. Backtesting

I've noticed that there is one thing, more than anything else, that gets glazed over in trader interviews and trading presentations…

The power of backtesting.

For example, I went to a Meetup this past weekend to learn about how this guy trades Forex.

A post shared by Hugh Kimura ?? (@tradingheroes) on Nov 20, 2017 at 1:05am PST

His presentation was good and it lasted about two hours. His Trader Personality needs a high win rate to feel successful. Therefore, that is what he worked on and his win rate is really high.

It's 90%+, for some strategies and currency pairs.

I'm taking him at his word here, I didn't see any verified results. But based on what he said, I believe him. The trade-off is that he has a lower average R multiple per trade.

Remember, there are no free lunches. There is always a trade-off.

However, the point is, that out of this 120+ minute presentation, he spent about 5 minutes on backtesting. He and his trading buddy backtested the crap out of their stop loss placement strategy.

It was actually a funny story because he said that he learned a stop loss strategy from a famous trader. He went back to that trader after he was finished testing and showed him the results.

The famous trader was floored and said:

You actually tested that? Nobody I talk to does that.

From what I could tell, most of the people at the Meetup could care less about this story. Nobody took notes on that part.

But to me, that was one of the most important points in his presentation.

Too bad he didn't spend a little more time on it.

The moral of the story is that you need to backtest to gain confidence in your system and to figure out what actually works. 

If you want to get started with Forex backtesting read this post.

…and don't just take my word for it.

These professional traders say the same thing here, here, here and here.

2. Mindset

Are you trading poorly because you're embarrassed?

That might not make sense right now, but according to Joan Soktin, that is the most common reason why many people are not where they want to be financially. If you want to learn more, you can listen to that interview.

The point is that we may not be fully aware of why we do the things we do. Our subconscious programming determines most of our everyday lives, regardless if we realize it or not.

So you need to take a step back and ask yourself why you do the things you do…

• Why do you take profits too early?
• Why do you revenge trade?
• Why do you seem to make the same mistakes over and over?

Meditation can help with this process. But there are other ways that we can improve our mindset.

One thing we can do more often is forgive yourself. Many times, we are way too hard on ourselves and tell ourselves mean things.

If you can give yourself some leeway to make a few mistakes, you will be surprised at how much more you will accomplish.

This is just one of the mindset strategies that can help you become a better trader.

Almost all successful traders that I have talked to say that your mindset is much more important than your actual trading system. In fact, that is what we focused on the most during the London Conference.

To learn the mindset skills that can make you a better trader, I recommend listening to this interview and this interview.

3. Personality Matching

Most trading courses say that their system is the best system in the world and it is the only one that you should be trading.

Sure, it might be great.

But unless you understand your trading personality, there is a very good chance that it's not great for you. Even if you had the most profitable trading system ever, you will probably still lose money.

Find out why here.

…and they have to talk in those absolute terms because they are in business to sell courses.

Just like all of the hot women/men out there are not good marriage material, not all of the profitable trading systems out there will match your personality. 

To learn how to figure out your Trading Personality, read this post.

…when it comes to your dating personality…sorry, but you will have to find another blog for that.

4. Different Colored Glasses

Everyone sees the world differently.

Me.

You.

That famous trader on the internet.

Just remember this, every time you listen to a trader. Many of them will talk in terms of absolutes.

…you can only make 25% per year in Forex trading.

…you should risk 2% per trade.

But remember that this is THEIR reality.

It might not be your reality.

You might be able to make 60% per year trading the exact same system. Your risk tolerance may only allow you to risk 0.5% per trade.

So learn what you can from them.

Just keep in mind that the only absolutes are what work for you.

5. Incremental Automation

A lot of newer traders I talk to think that their trading has to be completely manual or completely automated.

Not true. 

You can automate certain parts of your trading and keep certain parts manual. This is called Incremental Automation.

For example, you can enter your trades manually, then turn on a trading bot to trail your exit stop. Or you could setup trading alerts that notify you of your favorite chart patterns.

Even simple alerts on TradingView can help you stay on top of your trades.

A post shared by Hugh Kimura ?? (@tradingheroes) on Nov 21, 2017 at 12:19pm PST

Final Thoughts on the Keys to Successful Forex Trading

So those are the five keys to Forex trading success, that I feel don't get enough love.

Everyone talks about entries/ exits and trading systems. They are important, for sure.

But I would argue that these things are even more important. 

Happy trading!

The post 5 Most Overlooked Keys to Successful Forex Trading 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.

Trading is a tough business, one of the toughest out there.

In most businesses, you can work harder or hire other people to make up for skills that you lack, in order to become successful.

But in trading, you run the whole show and everything depends on your skills and your trading psychology. 

On one hand, that is great because you are the boss. You have nobody else to answer to and you are in complete control of your destiny.

This also means that if you have a good trade in the morning, you can take the rest of the day off. You are not exchanging hours for dollars, like in a regular 9-5 job.

However, what if your boss (AKA you) is painfully indecisive and an all-around crap trader? He always seems to go long right before price drops and fails to take those trades that turn out to be big winners.

Well, I’m here to tell you that it’s not your fault.

So don’t lose faith in yourself.

The real culprit is the education system that we have been brought up in. This post will show you how the education system as we know it, has failed us.

Then I’ll show you what you need to do to overcome that programming and become the trader that you want to be.

The Antiquated Education Model

For centuries, schools have been structured in basically the same way. You go to school and you are forced to learn everything that your teachers teach you, regardless if you are interested in those subjects, or not.

When you ask why you need to learn these things, you are told that, if you want to become successful and happy in life, you need to get good grades and get a good job. 

It seems logical and everyone else seems to believe it, so we blindly go along with it.

Teachers and parents often talk about people who are successful and attribute that success to things like having good grades, going to the right college or being in the right profession.

So we learn that if we want to have the things we desire in life, we need to follow one of these pre-determined tracks. 

…and therein lies one of the biggest reasons why it is so hard to become a successful trader.  

For example, let's say that you want to own a big 5-bedroom house and drive a M3 BMW. So you look around and a lot of the people you see with a nice house and that car, are lawyers.

So you set your mind on becoming a lawyer.

However, many times, we forget to ask ourselves two important questions along the way:

• Would I enjoy being a lawyer for the rest of my life?
• Is there another (more enjoyable) way to get that house and that car?

You can probably relate to this, in one form or another. You have probably worked a job for 5 years (or more) before you realized that it sucks.

But you followed the formula, how could you have gone so wrong? Well, because you ignored the means and only focused on the ends.

How This Applies to Trading

When we want to learn to trade, most of us follow the same logic that we have been taught in school. We look for the first successful trader we can find.

Once we find this trader, we set our mind to learning her trading method because we have been taught to emulate success, without regard for how we get to that success. 

…and this is one of the biggest reasons why aspiring traders fail to become consistently profitable.

To find the solution to this problem, we have to rewire our thinking…

The You-Centric Education Model

What if you could do it over and your formal education started with YOU? What if your elementary school teachers took into account your interests, learning style and innate abilities…then taught you accordingly?

Your life would probably be totally different right now.

Even if you don't believe that this method would have worked out for the better, humor me for a minute.

Let’s flip the traditional education system on its head and take a look at what could happen if your schooling focusing on you first.

For starters, if you only studied the things that interested you, school would have probably been a lot more fun. You would have wanted to go to school, instead of ditching class to go to the movies.

When we enjoy something, we also tend to become experts at it. When you were a kid, where you an expert at something like dinosaurs…or cars?

I would venture to guess that the answer is probably yes. You were an expert because you genuinely loved that topic.

For example, I was an expert at baseball. I was terrible at playing it, but I loved watching it and knew almost everything about the game.

You are probably an expert at something right now, simply because you enjoy it.

So if you were brought up to enjoy what you are doing, then you would probably be really good at it and figured out a way to get that big house and that nice car with those skills.

Even if you didn't figure out a way to make a lot of money, you would be one hell of a lot happier!

How This Applies to Trading

Alright, now let's look at this education model in the trading world.

What if you first figure out where your trading interests and abilities lie, then pick the trading methods that are best suited to your individual personality and lifestyle? Well, for starters, you will be working with your strengths, instead of against them.

Then trading also becomes more enjoyable and dare I say it…*gasp*…even fun.

So before you sign up for that next trading course or attend another webinar, ask yourself:

• What is my Trading Timeframe Personality?
• How much time do I realistically have to commit to learning and trading every day?
• Am I more of a trend trader, reversal trader or breakout trader?

Of course, this will take a little time to figure out, just like when you were discovering your other interests in life.

But once you can answer these questions confidently, you exponentially increase your chances of being successful at trading.

I've experienced this myself and have heard it time and time again from other traders. They only started to see positive results when they worked with their personalities.

Conclusion

Even though your miseducation is not your fault, you are 100% responsible for what happens next.

…especially now that you now know how to fix it.

Remember to start by figuring out the answers to those three personality questions, then seek out training that is aligned with those traits. This will put you light years ahead of most people who are learning to trade and greatly increase your chances of success.

What do you think? Are you willing to try it? 

The post If Your Trading Sucks, It’s Not Your Fault. Here’s Why. appeared first on Trading Heroes.

I am 100% guilty of saying every single one of these statements at some point during my trading journey. That is why I can show you how ridiculous each of these statements are.

If you are saying some of these things, then I will also show you how you can correct your mistakes. However, if you don't see anything wrong with these statements now, then please don't quit your day job yet (and also see #19).

Before we get started, don't take any of this personally. What I'm saying might sound harsh at times, but it is the truth.

I only have your best interest at heart.

1. I'll Make It ALL Back on the Next Trade

If you have ever said this, then you are well on your way to becoming a martingale trader.

…and those traders are the opposite of successful.

Trying to make too much profit on any one trade is the reason why so many traders blow out at least one account. Most professional traders that I have interviewed don't risk more than 2% of their total account on each trade.

Remember that if you risk 10% of your account on each trade, it only takes 5 losing trades in a row to lose 50% of your account. Then you will have to make 100%, just to get back to breakeven.

Some of the best traders in the world make 100% a year.

As an aspiring trader, you need to focus on losing as little as possible…because you will lose.

2. My Broker Ran My Stops

Classic, classic newbie statement. Can brokers run stops?

Sure.

But most legit brokers won't because they don't want to deal with the headache if they get caught.

The more likely scenario is that you set your stop way too tight, you took a bad trade or it was a good opportunity and it was simply a losing trade. 

Stop blaming everyone else for your losses. Take responsibility and figure out what really happened.

3. I've Lost 5 Trades In a Row, so I'm Due For a Big Winning Trade

Ahhh, gambler's fallacy at it's finest.

This idea of you are running out of “bad luck” is complete nonsense. Have you ever lost more than 10 trades in a row?

I have.

…and if I had kept risking more after each loss, I would have blown out my account.

So don't count on your next trade being a winner, just because you are on a losing streak.

It could be 10 in a row.

I've found that the two-strikes rule will stop you from going down the rabbit hole of doom.

4. My Entry is Late, But There's Still Some Room

Ever find yourself trying squeeze 1R out of a trade, when it's not really there?

Busted.

For example, there is a nice Pin Bar on the top of this recent price action.

But let's say that you don't have a Pin Bar alerts indicator and you get to your charts late, and it looks like this.

Chart by TradingView 

You might be tempted to take the trade, even though it is a little late. As you can see there is about 0.91R available, making the trade less than optimal.

If you take the trade, you could be in for a world of hurt.

Remember, there is always another opportunity around the corner. Be patient, because it's all about the entry.

5. I Trust My Trading Instructor Completely

Get a proper trading education.

…but don't trust any instructor completely.

I'm not saying that they are scams.

In fact, I believe the opposite. You can usually learn at least one useful thing from a trading course.

Even a bad course.

But there are many reasons why learning another person's trading system is only half of trading success:

• It might not work for your personality
• You will probably have to tailor it to fit you
• You may have to piece together several trading systems

So learn everything you can from as many trading instructors as possible. But their method isn't the only way.

6. The News Messed Up My Trade

No, Erin Burnett did not mess up your EURUSD trade.

You did.

The more likely scenario is that you forgot to check the news before you placed a trade.

Be honest with yourself. 

…or if you are a purely technical trader, then you just have to accept that getting stopped out happens occasionally.

7. I Need a 4K TV for Trading

Nobody needs a 4K TV for trading.

Seriously.

I've found that if someone geeks out way too much about tech, they are usually procrastinating and they should be doing more important things. 

…like backtesting.

…or filling out their trading journal.

Of course, there are people who love to play with tech, like gearheads love to work on cars. If that is the case, then knock yourself out.

But if you all of a sudden decide that you need an expensive  TV (or two)  in order to trade better, then that can only mean one thing.

There is something else that you are avoiding. 

Ask me how I know that

8. Only a Custom Computer Will be Fast Enough For My Trading

On a related topic, I've seen a lot of discussion on the forums about choosing the ideal trading computer. Some people think that they need a custom built, 12-core processor that runs on a nuclear power plant.

The reality is that most middle to high tier consumer computers are more than enough for most traders. If you must have a PC or are strapped for funds, then I recommend a Dell laptop. I trade with a MacBook Air.

You can also get both off eBay for a very reasonable price.

If you are running 3 trading platforms, 5 news feeds, a trading algo and 8 monitors…then you may need a custom built computer. Anything less than that is pure procrastination.

9. I Will Exit if Price Gets Back to Breakeven

This is the classic “Click and Pray” trading strategy, or the SWAG trading method, as I like to call it.

If you ever find yourself praying that the trade will get back to breakeven, then you are probably the proud owner of a soon-to-be losing trade.

So if you find yourself saying this on a lot of your trades, then you need to revisit your testing and be more comfortable with the risk.

10. The First Thing I'm Going to Buy With My Trading Profits is a Ferrari

I've talked to or heard from about a dozen people who have actually bought a Ferrari. All of them have said that it's a terrible car to actually own.

Sure, it can be pure bliss for that hour you drive it around. But it will need constant maintenance and will probably be broken more than it is working.

The traders at the hedge fund I worked at drove Porsches.

It seems like once you get to the level where you could get a Ferrari, you also understand that there are actually better cars out there.

11. I'll Donate to Charity, Once I Become a Successful Trader

This one always makes me cringe. You can donate to a charity right now.

Even if you only have $1 to spare this month, you can give it to a cause you believe in. People with an abundance mindset understand this. You need a healthy abundance mindset to be a successful trader.

Here are some charities that I support.

Get started now.

There's no excuse for waiting.

12. I Don't Need a Trading Journal

I fought a trading journal for years, so I can speak very personally about this one. Keeping a trading journal is the only way to understand the mistakes you are making and the trades you are missing.

Without it, you are going to keep repeating the same mistakes. One thing that I discovered was that I was picking quite a few winning trades, but I was bailing out too early.

This one discovery alone was a huge boost to my performance. 

13. I'm Not Going to Wait for this Candle to Close

Quick…answer this: When is a Pin Bar not a Pin Bar?

When it hasn't closed yet!

Slow down and make sure that your pattern is actually a pattern. Those patterns give you an advantage.

Without them, you are just gambling.

14. Trading Psychology is Not Necessary, I Just Need the Best System

Yes, the classic “holy grail” mentality. I love this one.

If you have ever said this, you are probably in your first year of learning to trade.

Psychology is the most important element in trading. You can listen to me or learn the same lesson 5 years down the road.

You choose.

15. The Risk I Take Depends on How Sure I am of the Trade

OK, in all honesty, I have seen this work. This guy does it and he is very good at it. In fact, he will risk up to 10% on a trade that he is very sure of.

But for most traders, this is a recipe for disaster. 

For 98% of traders out there, a fixed-fractional risk management system is usually the way to go.

So if you hear these words leave your mouth, then you probably aren't ready to go pro yet.

16. I Don't Understand How That Guy Trades But It's Complicated…So It Must Work

No joke, someone actually told me this at a meetup once. He had been studying a system for 6 months, and still didn't understand how it worked.

Blew my frickin' mind. 

If you can't grasp how the system works within a day or two, you are probably not going to be successful with it. Now, I'm not talking about trading it successfully.

I'm talking about knowing when to enter and exit.

In my experience, the best trading systems are easy to learn.

But they are all tough to master. This is because you need to master your emotions, not the actual trading system.

Don't get me wrong, there are some really esoteric systems out there and apparently some of them work. Astrology trading falls into that category, for me.

But guess what?

Are you going to master anything that you don't understand?

Of course not.

You aren't dumb for not understanding, simply find something that you do understand.

I could try to make a living as a nuclear physicist, but I don't understand physics and would fail miserably. Should I take that personally?

No way, I'll just go find another job.

17. The Markets are All Random

A college-trained economist will usually try to convince you of this. But if they are honestly convinced of this, then they probably aren't trading either.

…or they may have a gambling addiction.

Either way, anyone who believes this should not be trading. 

18. I'll Use Proper Risk Management, Once I Build My Account to a Decent Level

OMG.

How do you think you are going to get your account to a “decent level?”

Lucky rabbit's foot?

Black magic?

Proper risk management is the cornerstone of profitable trading.

Period.

19. I'm Going to Quit My Job So I'm Forced to Succeed as a Trader

This might work for other businesses, but this is the absolute worst thing that a trader can do. The reason is that trading is a very psychologically demanding profession.

If you are under pressure to make your mortgage every month, you aren't going to trade well. Keep in mind that if you can make 1% a month when you are starting out, you are doing really well.

But you won't make that every month. So let's say that you make an average of 0.5% every month.

Now figure out how big of an account you will need to cover your living expenses.

20. If a System Works on the Daily Chart, I'll Make 10 Times as Much Money on the 30 Minute Chart

Makes sense…kinda.

But in reality, trading a shorter timeframe is a much different animal. It is possible to profitable on any timeframe, but you need to master the nuances of each one.

Trading on smaller timeframes usually leads to over trading and general insanity. Just kidding, that's how I feel.

However, don't think that all trading systems will be tradable across all timeframes.

Learn your Trading Timeframe Personality and stick with it.

You will thank me later.

21. Stop Losses are for Pussies

You need to have a stop loss. I can be a hard stop loss, or it can be a mental stop.

Either way, the only way that you are going to be successful is if you learn to limit your losses and letting your profits run.

Using a stop loss is not about being macho.

It's about being a professional trader.

22. I'm Going to Completely Automate My Trading

This is possible.

But I honestly believe that only a very small portion of the population of traders are cut out to be completely automated traders. 

Why?

I think that your mind has to be wired in a certain way to truly understand the implications of automated trading. If this is your goal, then like I said, it is possible.

However, it is usually easier to come up with a profitable manual trading system and automating that, than it is to start with an automated system from the beginning.

So consider automated trading, if that interests you. But it is not the end of the world if you can't make it work.

You can also do incremental automation, which can make your job easier, but still gives you a lot of control.

23. That Was So Obvious, How Did I Miss That?

This is the classic hindsight bias.

You aren't going to catch every single trade. So chill out and let them pass.

There is another opportunity right around the corner. Beating yourself up will only lower your confidence and probably cause you to miss the next opportunity.

That setup might also have only been obvious, after the fact.

Keep that in mind too.

A good exercise to do is to scroll your chart back to the point when the setup happened. Is it as obvious now? If yes, then figure out why you missed it.

If no, then let it go.

Forward testing also helps a lot with this.

Need help spotting trades while you are busy? An alert indicator can be a huge help.

24. My Last Trade Was a Loser, I'm a Loser

You need to learn to forgive yourself.

Read this.

The forgive yourself again. Trading requires mental toughness. That is the only way that you can move forward.

This is a lesson that took me a long, long time to learn. You need to be your own cheerleader.

Nobody else is going to do it.

25. That Trade Lost Money, How Could I Have Made It Profitable?

Trading is about winning and losing. If there was a way to only win, they would call it printing money.

Unfortunately, losses are part of the deal.

So stop trying to figure out how to turn lead into gold. A losing trade can be a good trade too.

26. Why Did I Hesitate Taking That Trade?

The answer is because you don't have confidence in your trading system.

I wish it was more complex than that, but it isn't.

In order to gain more confidence in your system, you have to backtest and forward test your strategy before ever risking any money. This will give you more confidence than anything else I have ever seen.

27. I'm on a Roll, It Makes Sense to Increase My Risk

This is the “hot hand” syndrome that usually leads to giving back all of your profits for the month.

…or maybe even the year.

While the trend could continue, it is much more likely that it will start to chop around or reverse. To prove this to you, take any trading system and backtest it.

First trade it with regular risk. Then test it so that you raise the risk by 50% when you win 3 trades in a row.

Compare the results.

28. I Lost Money Trading That Market, I'll Never Touch It Again

Yeah, blowing out an account hurts. I've never blown out a trading account, but I have lost money in the real estate market, which I talk about here.

That's when I told myself that I would never buy investment property again.

But when I step back and consider that statement, it doesn't make sense. It market didn't suck…I did.

I simply was not good at it. If others are successful, then I can be too.

It is just about learning the skills and having the tenacity to figure it out.

29. My System is Fully Backtested, There's No Way It Can Fail

There can be a big gap between backtesting results and actually live trading results. Some of the reasons for this can be:

• You are not awake to take trades in live trading
• Market conditions have changed
• Your backtesting used too small of a testing period
• The way you react with real money on the line can be much different than with play money
• And more

That is why you also need to forward test a trading system after you backtest it. The past will give you clues as to what will work in the future, but it's not set in stone.

29. I'm Going to Get Rich With This Trading Robot

I went through my trading robot phase, like a lot of other people. On balance, I actually made a little bit of money with the robot.

But in the end, I decided to stop using it. The reason was that the creators kept changing the “optimal” settings every month.

That didn't sit well with me.

The fact is that if you didn't design the robot and you don't know how it works…

…then how do you know when it has stopped working.

Ponder that for a minute and I think you will realize that all commercial trading robots are built to fail. 

30. Before I Enter a Trade I Need to be Absolutely Certain it Will be Profitable

This is what left-brain dominant people usually say. They will need 5 kinds of confirmation, before they can enter a trade.

Usually, this means that they have 20 indicators on their charts and are watching the news to be extra sure.

Trading is essentially the skillful management of the unknown. 

The sooner you can understand this, the sooner you will do what it takes to be successful.

31. Even Though I'm Losing, I'm Going to Increase My Position Because the Price is Even Cheaper Now!

This is dollar cost averaging. It can make sense when you are building a long-term position in a stock. But in active trading, this is just throwing good money after bad.

Keep your risk constant and honor your stop losses. Once you are out of the market, you can think with a clear head.

Conclusion

Sorry to break it to you, but if you find yourself saying these phrases on a regular basis, you are probably not ready to become a professional trader.

Not to worry, it is a process. It doesn't happen overnight.

Everyone who is successful at trading right now, put in a lot of work to get there. So start with a course or two and get on it!

You only fail if you quit. 

The post 31 Statements That Prove That You are Not Ready to be a Pro Trader appeared first on Trading Heroes.

There is a statement that I hear occasionally, that annoys the hell out of me. So I finally decided to write about it.

I'm not sure if this will change anyone's mind, but it needs to be said.

The Statement

It usually goes a little something like this:

“That trader cannot possibly be legit because they are such a big self promoter.”

I get emails like this occasionally and it's just about the dumbest thing that I have ever heard. 

Guess why?

Because you are a self-promoter too!

Everyone is a self promoter…or at least I hope so.

More on that in a minute…

Let's start with the most common reason for the negative connotation around traders who market themselves heavily. Yes, that person could be a scam.

But remember, going out of your way to call someone a scam is preventing you from realizing your full potential, as a trader.

So don't do it. Focus on what you want to have instead (education, a trader to trade for you, etc).

You Are a Self-Promoter Too…or at Least I Hope So!

Now that we have that out of the way, let's take a look at the facts. You are just as guilty of being a self-promoter as that guy on Instagram or Twitter.

If you aren't promoting yourself, then I feel sorry for you.

But since you want to be a successful trader, I know that you are great at self-promotion and you have probably had quite a bit of success up until this point.

That's just what the law of averages says.

Here are the two big areas where we promote ourselves and might not think about it as self-promotion.

Your Job

Did you send out a resume to get your job? I'm sure that you spent hours on that resume…

…making sure that there were no typos and that all of your achievements were there. Or maybe you paid someone to do it.

Either way, you are guilty of self-promotion!

You hustled, prepared yourself for the interview and did your best to highlight your strengths.

But does anyone frown upon this behavior?

Of course not.

Getting a good job puts food on your table, a roof over your head and makes sure that your family is taken care of. It pays your health insurance and much more.

So why wouldn't you work as hard as possible to promote your skills and get that job?

Nobody else is going to do it for you. 

Your Significant Other

When you go out on a first date with someone, do you shower, comb your hair and brush your teeth?

I sure hope so. 

Furthermore, you are probably on your best behavior, you might bring flowers and maybe even rehearse a few jokes.

But just to get that first date probably required a lot of work too. You might have joined an online dating service and if you did, you probably used your best picture and description.

…all shameless self-promotion.

If your date was successful and it becomes more, you have self-promotion to thank.

Again, who else is going to do it for you?

Conclusion

The bottom line is that people with any type of business, trading or otherwise, will have to promote their company to stay in business. Regardless if they are legitimate or shady, the amount of hustle required to be successful is the same.

So why not judge the person on references and actual conversations with them, instead of their marketing? 

Since you want to learn how to trade successfully, I'm very sure that you have been successful in these areas…in addition to several others. You have been successful because you are a fantastic self-promoter.

…but you have probably never thought of it that way before.

So before you write anyone off, just because they are doing a great job promoting themselves…check yourself for a minute. That person is busy winning, while everyone is busy doing the other thing.

Which side do you want to be on? 

The post Winners Self-Promote. Losers Do This. 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.

Trading quotes (and inspirational quotes in general) are a funny thing…

In small doses, they can serve as fuel to propel us forward, especially when we are feeling discouraged. But when you get them all the time (ahem, like on some Instagram accounts) they can seem cliché.

So I didn't want to barrage you with a million trading quotes. Only the ones that I really like and resonate with me.

I also give you a little background on each person who is credited with the quote. You might learn something new about some of these people…I know I did.

In addition, I only quote each person once. This made compiling this list much harder, but I think it also makes it much more interesting.

I'm sure you don't want to get 17 quotes from Jesse Livermore

Hopefully you will really love one or two of them. If so, be sure to write them down and keep them visible during your trading day.

If you like this list of trading quotes, feel free to share it on Twitter by clicking below.

Which one of these trading quotes is your favorite? 

Then I hope you go create some quotes of your own…

My Favorite Trading Quotes

1. Michael Marcus

“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.”

Background on Michael Marcus: He is primarily known for turning $700 into $80 million and was featured in the Market Wizards book. One of his biggest mentors was Ed Seykota.

2. Alexander Elder

“You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody.”

Background on Alexander Elder: From his website…

“Dr. Elder was born in Leningrad and grew up in Estonia, where he entered medical school at the age of 16. At 23, while working as a ship's doctor, he jumped a Soviet ship in Africa and received political asylum in the United States. He worked as a psychiatrist in New York City and taught at Columbia University.”

That's also possibly the best opening of a book…ever. Yes, even better than A Tale of Two Cities.

3. Martin Schwartz

“A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate with working smarter. In fact, sometimes is the other way around.”

Background on Martin Schwartz: He is probably best known for winning the U.S. Investing Championship in 1984. He trades stocks, futures and options.

4. Nicolas Darvas

“I believe in analysis and not forecasting.”

Background on Nicolas Darvas: A dancer by training, but he taught himself to trade and made $2 million in the stock market. He is known for his “box theory” of technical analysis.

5. Van K. Tharp

“A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.”

Background on Van K. Tharp: One of the best trading psychologists. He has been helping traders create trading systems, overcome self-limiting beliefs and become the best version of themselves, since 1982.

6. Ed Seykota

“Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.”

Background on Ed Seykota: In the 1970's Ed pioneered the testing of mechanical trend following systems on punch card computers. He helps traders on his Trading Tribe website.

7. Paul Tudor Jones

“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”

Background on Paul Tudor Jones: He is probably best known for his prediction of the 1987 Black Monday stock market crash, in which he tripled his money. He is the founder of the Robin Hood Foundation, a philanthropic organization, mainly backed by hedge fund operators.

8. William O'Neil

“What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.”

Background on William O'Neil: Famous for the CANSLIM method of investing in stocks. Founder of Investor's Business Daily.

9. John Maynard Keynes

“Markets can remain irrational longer than you can remain solvent.”

Background on John Maynard Keynes: A famous British Economist who won and lost fortunes in speculation. Known for Keynesian Economics, where he believed that in an economic downturn, a government should borrow money to finance economic recovery.

10. Warren Buffet

“You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”

Background on Warren Buffet: The “Oracle of Omaha” is known for value investing and is one of the richest men in the world.

11. John Paulson

“Those types of investments don’t come around very often.”

Background on John Paulson: His company made $15 billion on the subprime collapse. ‘Nuff said.

12. Randy McKay

“When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.”

Background on Randy McKay: He was featured in The New Market Wizards. In 1972, he used his brother's seat on the newly formed IMM and started trading with $3,000. The rest, as they say, is history.

13. George Soros

“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.”

Background on George Soros: Known as the man who broke the Bank of England, he now dedicates his time and money to supporting progressive political causes.

14. Larry Hite

“Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.”

Background on Larry Hite: A hedge fund manager who helped pioneer computerized system trading, with Ed Seykota.

15. Bruce Kovner

“If you personalize losses, you can't trade.”

Background on Bruce Kovner: He borrowed $3,000 on a credit card to trade soybean futures. That trade eventually went to $23,000. He is now estimated to be worth $5.3 billlion.

16. Victor Sperandeo

“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliche, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.”

Background on Victor Sperandeo: Another trader who benefited from the 1987 stock market crash, reportedly making 300% on his money. Also known as “Trader Vic,” not to be confused with the tiki bars.

17. Sir John Templeton

“The four most dangerous words in investing are: This time it's different.”

Background on Sir John Templeton: Investor and mutual fund pioneer, Templeton became a billionaire by pioneering the use of globally diversified mutual funds. He was one of the most generous philanthropists of all-time, giving away over $1 billion during his lifetime.

Conclusion

Whew, that was fun. Out of all of those quotes, the one from Alexader Elder is my favorite.

But who knows, that may change…

Now it's your turn…what are some of your favorite trading or inspirational quotes of all-time? Or even better, what is a trading saying that you would want to be known for? Drop them in the comments below…

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The post 17 of the Best Trading Quotes of All-Time appeared first on Trading Heroes.