Powerful trading concepts to boost your consistency and long-term performance in the Forex, Indices & Commodities markets.
Click on the video to watch the full breakdown
First, Know Your Enemy
Without doubt, if there was one thing that has led to the downfall of many traders, the greatest enemy you will face in your trading journey to be consistent, it has to be your emotions. One emotional decision can ruin you.
So how do we keep ourselves consistent in making good decisions – and not emotional ones – when the charts and life too gives us ups and downs?
Understand What Emotions Really Are
To get to the root of the issue, let’s look at why emotions are a big deal and lead to bad decision making.
First, you have a thought from an event (the chart or life) come up in your mind. Then you have an emotion arise. And immediately your whole body reacts in a physical way. This reaction creates a State – a whole-body vibration that you experience throughout your very being. It can be a joyful high, or a sad low, or a neutral peace. That then causes you to take an action based on what you feel in the moment. This outward action will either be coming from a positive State or a negative State. Actions from a negative State will always be the ones that screw up your trading. They are not the decisions you usually make when you’re calm.
If you’ve never noticed it before, you may want to start now!
There are only really two states: Peaceful or Non-peaceful.
How does Peace feel like in trading terms? Neutral, calm, aware, unattached.
How does Non-Peaceful feel like in trading terms? Greed and Fear.
At any moment, you can notice whether you’re in one or the other.
What have you noticed about yourself when you’re in front of the charts? Do you find yourself entering a trade impulsively out of random discretion, when it’s not part of your plan?
Break the Vicious Cycle
As we said, the cycle is:
Event >> Thought >> Emotional Reaction >> State of Being >> Action
The way to break this unconscious habit cycle, is to create your own unconditional State – one that is independent of anything that happens to you in life that day, or anything that happens on the chart.
YOU become the source of what you want to experience.
In The Wolf of Wall Street, Leonardo DiCaprio played the character based on the real-life story of Jordan Belfort – a successful salesman. Belfort credits making his millions thanks to an idea he found in a practise called Neuro-Linguistic Programming.
Using an Anchor smell, he created his own State, which he used every time to be in the emotion he wanted. It meant he was consistently in the zone basically.
Watch here to understand it, and what he did:
Now, Use it for Your Trading
This same Anchor process can be used for trading. You must place your whole body and being into the State you wish to experience. It can be: Peace, Satisfaction, Joy… any you choose that resonates.
Here are the steps you can take now to put this into action:
- Order your nose stick (or get your own personalised trigger Anchor)
Here are some options:
- Take 3 of your best setups you’ve taken recently – print them out on full scale A4 paper
- Look at the setups, feel the certainty in your body, close your eyes, say YES! with the smell
- Do this for 20mins every day for 100 days – yes it’s a challenge!
- Once the anchor is strong, do it again before you start trading each day. You should feel in the zone before you start. If not, watch the video again and keep making the anchor stronger.
Try this NLP Anchor and let me know in the comments below what happens!
Happy trading everyone.
Written by: Dima Mihailovich, Technical Analyst for Forex Prop News
Contact and follow Dima on Twitter: @dimafpn
(Please note: All comments made in this video and article are not trading or investment advice and are for education purposes only. You are responsible for your own decisions and the risk that goes with it.)