You are starting the last pillar of your course where we discuss mindset.
We are going to talk about mindset in trading, but you will probably realize it very quickly...trading is a way of life, a complete lifestyle.
Let me explain it to you.
In cultivating our trading, we are developing ourselves in ways that ripple throughout our lives.
The truth is simple: Life is all an illusion.
It is an extrapolation of our consciousness and that extrapolation creates our reality. It is a game and we are the players.
As we master the game, so too do we create it. As it is our creation, we can thus dismantle it and recreate it at will.
It means that we can change the very nature of our reality. We are in that sense coauthors in the construct of our future, not merely passive subjects of it. Our broad range of alternatives combined with our ability to imagine and project coming events can actually help bring about that which we enjoy or that which we dread.
See, our emotions are not automatic responses to what happens in reality but are a result of our interpretations of that happening.
Our reality is shaped by our beliefs.
Until we have acquired the ability to perceive every possible way in which the environment can express itself, our beliefs will always represent a limited version of what is possible from the environment’s perspective, making our beliefs a statement about reality, but not necessarily a definitive statement.
Beliefs limit our awareness of the information being generated by the physical environment so that what we perceive is consistent with whatever we believe. Therefore, how do we really know what the truth is?
The truth is that there is no truth. There can only be what represents “your” truth. So it is paramount that your truth is as objective as possible, that it recognizes its own limitations and expands with ease.
With this awareness, your mind is opened for an exchange of energy. The only way to achieve “this” in trading is by moving your beliefs away from the approach that you must be right to make money, towards thinking in probabilities by following a trusted system/process; from a profit-based mentality to an execution-based mentality.
Successful trading is not about money, rather it is about executing a system flawlessly.
If you know when to buy and when to sell before you play, the odds are with you. Self-discipline helps you avoid emotions and expectations. The ability to discipline yourself to delay gratification in the short term in order to enjoy greater rewards in the long term is the indispensable prerequisite for success.
Adopting this perspective leaves your mind free of internal resistance that can prevent you from perceiving whatever opportunity the market is making available from its perspective: the market truth.
What is helpful is to embrace your flaws: every losing trade is there to teach you something. Focus on the mistakes to fix them. To do it, charge mistakes with positive emotions, not negative. Accept any mistakes!
You should always dedicate a portion of your mind to being a watchdog over your behaviour. Listen to the “little voices” in your head and to the actual words you say to yourself. What you are doing in these moments is trying to change reality to meet the content of your mind rather than fixing the content of your mind to accurately perceive reality.
This process is called rationalization, the most dangerous and confusing method of avoiding pain. The most common rationalization process that exists in crypto is the “love for the crypto-asset class”.
Take control of your thoughts. There are no failures, there are only experiences. Don’t lose your enthusiasm.
You know, when you talk with a crypto maximalist, most of the time, you can’t express a negative opinion about crypto or explain why you don’t care whether crypto will or will not be successful for the next decade/century.
Love blind people and lead them to emotional decisions.
Arguing with a maxi is toxic for the simple reason that maximalists are not simply having a conversation with you, they are defending their own dream of wealth. Liberal values of bitcoin and crypto became part of their identity. By going against this dream, you become the bad guy who wants to destroy their life. So the conversation turns out to be toxic as fuck.
Don’t fall for it. Don’t fall for any bias. Flow with the market like water. Be flexible. Be Free.
Being free means attaining the ability to “give freely” to yourself, to your work, and to others.
We are beings of consciousness. In order to survive, human beings must choose to think; identify reality and integrate the material available to the senses.
It means that we have free will in the sense that we can choose to provide or change the programming of our subconscious computer, but we cannot change the nature of its functioning.
For us as traders, it means acquiring the ability to establish true motivation, to take control of our faculties such that they need to avoid pain and the desire to attain pleasure is directed toward the same end.
It means striving for the integrity of thought, actions, and emotions.
Feel elated by being free but always remember that being free means learning to experience joy in the process of living.
Money has to be out of the spectrum so that it cannot enslave you anymore. Unload the emotional charge of the money.
As a result, if you are free, you are not in love with any asset class, thus you are not blind. When it’s time to sell long term investments, it’s time to realize the profits you have been dreaming of. You can’t be free if you let greed create a self-destructive subconscious environment in your mind.
Don’t be weak and feel “naked” in not owning any crypto. You literally just achieved the goal you planned for. What else do you need?
Own your mind. Fix your brain. Live a life worthy of remembrance.
All these lines are a compilation of my tweets from 2018 when I was reading a lot about consciousness and trading. In order to get more, I suggest you read:
- For consciousness: Eckhart Tolle, Wayne Dyer, Joe Dispenza.
- For trading mindset: Van Tharp, Mark Douglas, Brett Steen