Trading Psychology – Highly Useful Wisdom From Ronald Reagan

Brian here and I’ve got a short story to share with you that includes a wisdom from Ronald Reagan that is directly applicable to your trading.

The short story.

I remember being back in high school and one thing that really had me very bummed out was the general apathy about being an American citizen.

Personally, I’d grown up with the ideals and dreams of my generation, and aspirations of one day becoming an astronaut or maybe even President.

For my whole life, I’d always been very proud to be an American.

With the aftermath of Viet Nam, the whole Watergate debacle, the mid-70’s oil crisis and subsequent depression, and then the hostage situation in Iran during the Carter administration, it had become commonplace for Americans to have a pretty crumby opinion of the U.S.

When I heard my friends and schoolmates talking about the draft, a common sentiment expressed was “Screw that!  I’m not getting drafted!  I’ll head up to Canada first.  I’m not putting my life on the line for this country!”

Every time I heard a comment like that, it hurt.

When Reagan took office in 1980, he was stepping into a tremendously challenging situation:  apathy was rampant, the economy was in shambles, inflation was at record levels, and to top it all off, the Cold War was still going on.

In addition to all the ‘normal’ things that a President has to deal with, the Soviets were a very real threat to the physical safety of all Americans.

Nuclear arms were built up to where the entire Earth could be completely destroyed many times over.  Two giants standing face-to-face with bazookas pointing at each other’s heads.

But Reagan was able to get matters to the point of negotiating arms reduction, something that neither side was previously ready to do.

Reagan’s Challenge That Relates Directly to You as a Trader.

During this process of dismantling ballistic missiles and warheads, Reagan new that the risks were incredibly high if the Soviets didn’t keep their end of the bargain.

He was in a position where positive progress was finally being made to end the Cold War, and finally bring peace and a feeling of security to America.  The benefits were very high if he could make it happen, while at the same time it could be catastrophic if we dismantled our arms and the Soviets didn’t.

What a spot to be in:  achieve peace after 40 years of hard work or lose everything.

Do you think that maybe he was feeling some stress, anxiety and doubt in this situation?  Pretty safe bet he was.

But President Reagan was no fool.

He’d lived through the Great Depression and World War II, some pretty challenging times for our country and for all the individual citizens of the U.S.

Ending the Cold War through peaceful means was finally at-hand, but it required the one thing that is hardest for anyone to do:  TRUST

In this situation of dealing with a hostile adversary, but being forced to go ahead and “lay down the weapons”, Reagan knew that BLIND trust would be foolhardy with the Soviets – they’d shown many times over that it wouldn’t work, so he employed a wisdom that you can use too:

TRUST BUT VERIFY.

Reagan knew that if he could arrange a way for both sides to verify that the promises made were being lived up to, then the doubt they both felt could be eliminated and they could proceed forward to a monumental, historical achievement.

Without verification, the whole process was at risk of failure.

How This Relates to You and Your Trading

The underlying question that is running through the back of your mind whenever you feel any anxiety, hesitation or the temptation to second-guess your trading system is:

“Can I TRUST it?”

The same goes for when you are on a website considering buying new trading system.  Sure there are going to be big claims about how much money has been made with it.

Even if it sounds great, looks great and even has published results to back it up, you’re left in a lousy position:  you have to go on TRUST.

If you don’t have a method and a tool to quickly and confidently VERIFY that indeed the trading system is good, to know HOW good it is, and that it will work FOR YOU, then you are forced into a spot similar to Reagan: stress and anxiety – because you are going on the word of someone else.

And the first time you hit a handful of losing trades, DOUBT comes in and amplifies the problem, making your confidence start circling the drain and having the discipline to stick to the system next to impossible.

So how do you TRUST BUT VERIFY?

That’s what the Trading Performance Analyzer is for.  It gives you that verification, that PROOF, so that you can proceed forward toward your goals with peace of mind and know that the system you have WORKS and it works for you – with ZERO RISK.

It gives you that confidence you need to stick to your system when losing trades occur.

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You owe it to yourself as the owner of your business to only be working with what you KNOW works.

This is the fastest, easiest way to ‘trust but verify’ when it comes to trading systems.

Cheers

Brian

P.S.  I know this is a rather personal close to a trading-related message, but I felt that I really should include it:

I’ll never forget when the restoration of the Statue of Liberty was completed and the ceremony for the unveiling was being broadcast.

When Lee Ioccoa was introducing Reagan, he said “I am proud to present the man that made Patriotism fashionable again.”

It brought everyone in the room to tears.