Personal Survival
Table of Contents
- We established earlier that the success of our trading business requires both
- Financial Survival &
- Personal Survival
- This chapter examines personal survival – both throughout the learning process and then our ongoing Trading Career.
- Survival is a result of certain prerequisites being in place (without them you are going to struggle to even get started) and then maintenance of a peak performance mindset.
- We will be touching briefly on the topic of trading psychology.
- A complete investigation of this topic is beyond the scope of this Course (perhaps a future book or video on YouTube).
- In particular, we will not cover the background theory – the cause and nature of the various psychological influences on your decision making and actions.
- While this theory is important, I prefer to focus on the practical; sharing the tools and techniques which we use to manage our trading mindset.
Prerequisites for Survival
- Before we get to the tools and techniques for maintenance of a peak performance mindset, there are some prerequisites that must be in place:
- Realistic Expectations
- Motivation to take Positive Action
- Passion for the Process
- Let’s look briefly at all three.
Realistic Expectations
- You must accept that this is a journey. There is NO Holy Grail solution.
- It’s a journey of personal growth and development. And it WILL take time.
- It will be easier once we have a graduated plan for our development.
- We will put one together in (Volume 7).
- However the rate at which you will personally develop towards consistent profitability is unknown.
- If you already have experience, this course may provide the missing key that has you there in quick time.
- It may take you only a matter of months. But for the majority, it will likely take a number of years.
- Accepting that it’s a journey of unknown duration, you need to have realistic expectations.
- You need to display patience.
- Your lifestyle needs to be structured such that success is not required within any deadline, and sufficient income is available for your financial survival throughout the learning process.
- Without this, the stress will be too great. And you will most likely not make it.
Motivation to take Positive Action
- Use a motivation journal for daily motivational reinforcement.
- Available to download on our website below this article.
- In terms of prerequisites though You absolutely must be 100% clear as to why you want to become a consistently profitable trader.
- Your reason why, or your purpose, must be strong enough to get you up each day, excited, ready and willing to face the upcoming challenges.
“The only way we’re going to make a change now is if we create a sense of urgency that’s so intense that we’re compelled to follow through“.
by Anthony Robbins
- Without a strong and clear reason why, I promise you will not make it in this game.
- I recommend documenting your reason why in one of 2 ways.
- Try both, to see which works for you best.
- (Available to download on our website below this article)
The first option is to use the emotions of pain and pleasure.
You need to clearly identify the pain that comes from failure to achieve trading success. And you need to be crystal clear about the pleasure that you will derive from trading success.
Your reasons will change over time; that’s fine. For now, ask yourself the following questions:
“What will it mean for my life and my happiness if I fail to put in the necessary work to become a consistently profitable and successful trader?”
- Take some time to think of your response, and write it down.
- Then look deeper. Ask, “What does that mean?”, and again write down your answer.
- Keep asking, “What does that mean?” until you get down to the very core feelings associated with the pain of failure.
“What will it mean for my life and my happiness when I succeed, and can call myself a consistently profitable trader?”
- Take some time to think of your response, and write it down.
- Then look deeper. Ask, “What does that mean?”, and again write down your answer.
- Keep asking, “What does that mean?” until you get down to the very core feelings associated with the pleasure of success.
If you haven’t done this exercise, take a break from reading now, get a piece of paper, and examine your pain and pleasure motivators.
The second option (and the one I prefer) based upon an article titled “The Four Emotions That
Can Lead to Life Change”, by Jim Rohn. Do a Google Search and you’ll find it, if interested.
- Jim Rohn says there are four basic emotions which cause people to take decisive action –
- disgust,
- decision,
- desire and
- resolve.
Add to your previous reasons why, a sequence of new statements based upon each of these four emotions. You may get the same response as previously, when using pain and pleasure. That’s fine. Sometimes though, you’ll find some new insight through approaching the subject from this different direction.
Disgust
There is, in my opinion, no greater motivator than disgust. Absolute disgust at my job will keep me working towards trading success. Absolute disgust at my previous undisciplined attempts to trade will have me moving forward in a more disciplined and businesslike manner.
What is it that you’re disgusted with? What is it that you wish to never experience again? What is it that has you saying, “No More! Never Again! Enough is Enough! It’s Time to Change!”?
Decision
Life will provide you with many competing priorities. Your time is limited. There is only so much you can do each day.
Make a clear decision – trading is a priority. You will do this. You will do this properly.
Document that decision. Put it in writing. And tell everyone close to you.
Desire
Write down a desire statement. What do you want to achieve from trading. There may be some overlap here with the previous pleasure statements. Be sure though that the desire statement is one based upon a feeling.
For example, it’s not the money that you desire. It’s the feeling that this money will give you.
Document your desire. What do you want to achieve from trading? Put it in writing.
Resolve
Resolve to do whatever is necessary to achieve your goals. You’ve got the disgust to move away from. You’ve decided to take action. You have the desire to move towards. It’s time to resolve to do whatever it takes to make it.
Document your resolve statement.
Resolve to never quit, no matter what comes ahead.
Here’s a great quote
“Not dead. Can’t Quit.”
by Richard Machowicz
Passion for the Process
- Armed with realistic expectations and motivation to take positive action, the final prerequisite is a Passion for the process of trading.
- If you don’t enjoy the daily routines, you will NOT survive.
- You may hate your previous life, and greatly desire the rewards that come from trading success.
- You might be motivated for action. But if you don’t absolutely LOVE the process of trading, I guarantee you will FAIL.
- The motivation, disgust and desire will not be enough. //(From Previous PDF)
- So, take some time to consider
- Whether or not you really love this game?
- Do you love the analysis?
- Do you love the challenge?
- Are you OK with making mistakes, reviewing your decisions and trading actions, and trying to find the way forward?
- Are you willing to make mistakes? Forgiving yourself again and again and again?
- If not… perhaps trading is not the right path for you?
- It’s OK. It’s best to admit that early, before damaging your financial and psychological capital.
- You have seen the strategy. You have a good idea of the degree of work required to conduct analysis and trade the markets.
- Are you excited by the challenge ahead? Take some time out to confirm your passion for this game.