Hello Trader,
Have you ever wondered why you sometimes make trading decisions that contradict your strategy? The answer might be hiding in your subconscious beliefs.
The Power of Beliefs in Trading
As traders, we like to think we're guided by analysis, strategy, and discipline. But beneath these conscious elements lie our true beliefs—the ones that actually drive our actions.
I was reminded of this watching my late mother, a devout Christian. She didn't just talk about her faith—she lived it. When faced with difficulties, like my father's passing, her actions reflected her genuine beliefs. She prayed, handed her troubles over, and found peace.
Trading is no different. There's often a gap between what we say we believe and how we actually behave in the markets.
Time for a Belief Audit
This isn't something to rush through publicly. In the privacy of your own home, take time to examine beliefs around:
- Yourself as a trader – Do you truly believe you're competent? Or are you playing the role of a “driveway mechanic,” letting ego prevent you from seeking the help you need?
- The markets – Do you say markets represent masses of people and algorithms, but trade as if it's just a video game without real consequences?
- Uncertainty vs. randomness – Do you claim markets are uncertain (they are), but actually trade as if they're random (they're not)? True randomness would create scatter plots on charts, not the ordered patterns we see.
- Money and success – Do you believe you're worthy of trading success? Or harbor guilt that trading doesn't provide “real value” like other professions?
Actions Reveal Truth
The most important insight: your actions reveal your true beliefs, regardless of what you consciously think.
List out what you believe about trading, money, your abilities, and the challenges you face. Then honestly assess if your trading behaviors align with those stated beliefs.
Breaking Through Limiting Beliefs
Here's a powerful exercise I've found helpful for cracking open limiting beliefs:
Ask yourself: “Is anyone else succeeding at what I'm struggling with?”
If you're struggling to achieve consistent profits, ask: “Are there traders no smarter or more talented than me who are profitable?”
Of course there are!
This creates space in your mind to allow for the possibility of your own success. If others can do it, maybe you can too.
Your Next Steps
Take time this week for this personal reflection. Your true beliefs dictate your trading outcomes, so bringing them into alignment with reality is essential for your success.
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If your strategy isn't a perfect fit for YOU, that could create an internal conflict that causes you to sabotage yourself – even if everything else about your trading is solid.
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Wishing you clarity and profitable trades,
Brian McAboy
Inside Out Trading
P.S. Struggling with your trading? I'd be happy to help identify what's holding you back and chart the best path forward. Book a free consultation call at InsideOutTrading.com today.
