By eliminating your focus on the money, you will be able to improve your stock trading performance because you are free to focus on the trading activities that generate your profits…by performing these activities well you improve your trading results and make more money!
Sounds reasonable, BUT how can you stop focusing on the money? Isn’t that what stock trading is all about?
This video explains how you can adjust your focus to enable profits to come more easily in your stock trading account:
If you found this valuable, please comment below and share this post.
Click the button below to download my free report “The 10 Commandments for Profitable Stock Trading”. These are the most important lessons I have discovered on my trading journey over the last 15 years. They have helped me make fantastic returns in the market consistently over the years. I am sure they will help you too!
This concept came up again for me this week because one of my coaching students asked me a question and what he asked me was really interesting was he was reading Market Wizards and said:
"I know I'm not supposed to focus on the money and the money is bad and dangerous and difficult and all of those things. But if I am not supposed to focus on the money what am I supposed to focus on?... and how do I get my mind off the need to make money and grow my account constantly over time?... how do I get my mind get rid of my addiction to thinking about and watching my account balance?"
The answer came for me when I was thinking about what I really want.
If you ask yourself (do this right now) what do you want out of your stock trading? You know why do you trade?
Most people will immediately say they want to make money. But what you want to make money?
If I think why I want to make money trading, it is so I have the freedom to do buy the things I need for my family and myself to travel and have experiences...and so I can feel happy and confident.
- If you look at what I said above, there are three different types of reasons:
1. The first one is stuff. For example and try to make money so I can buy a new car.
- Second was experiences. For example I trade so I can make money so I can go on holiday with my family.
- Third one was to do with feelings. For example, I trade so I can feel safe and secure in my financial future.
But if you look at the first two stuff and experiences, why do you want those things? Why do you want a new car? Why do you want to go on holiday with your family?
Usually things / stuff and experiences are what we want so that we can feel a certain way. So it all comes down to the end of the day to have certain feeling. The feeling we get as a result of trading and making money. If you want to trade to make money you can buy a new car for instance. Think about why you want to trade with this example a little more deeply...I want to trade so that I can make money so I can buy a new car so that I can... (You fill in the blank)
If you filled in the blank, the chances are what you filled in with was some sort of feeling.
...So I can feel good
...So I can feel happy
...So I can feel free
...So I can feel a sense of joy in my life
Any of those sorts of things are all feelings.
So why do we trade?
Yeah we want to make money but ultimately we want to do it for some sort of feeling. If you can identify that feeling this helps you because it makes it clear that the money is just a point in the middle...on the way to your bigger, more important reason. Making money becomes much less important because you know it's only a stepping stone to this ultimate goal of feeling a certain way in your life.
How does this make our trading better? That's actually really simple.
If what we want is the feeling and what we're going to do is think about what are the actions that we take in our trading day to day that will ultimately give us that feeling because we if we do the right things we will get the results we want and therefore get the feeling we want. If we're not aiming for the money, but we are aiming for the feeling we then are easily able to focus on this small number of actions that we can do consistently to get that feeling and not worry so much about the money between because that's only an intermediate goal.
The ultimate goal is the feeling we're going to generate.
What I encourage you to do if you're struggling with the focus and the money and the worry about your account balance going up and down is think about why what do you want the money what you want to feel as a result of all of that then come all the way back to actions you need to take...and focus on those actions.
Ask yourself what are the actions you need to take in your trading day today to ensure that you are going to get that feeling. Chances are it's going to be a couple of really simple things:
1. Follow your trading plan
2. Execute every trade your system generates
3. Control your risk and size every trade conservatively and so on
This can be a small number of really simple actions that every trader has to do in order to trade well so they can get the results and the feelings that they really want in life. So that's it for today's video - focus on the feelings you want to get as a result of your successful trading business, and use that to understand what actions you need to take day to day consistently rather than focusing about the money...because the money is only the intermediate goal.
So if you like this video what I'd like to do is just click the Like button below and also just leave me a comment...