It is my opinion that if you are not achieving the results you want, or are way off in where you want to be, etc, then to quote the business philosopher Jim Rohn:
Everything affects everything else.
Everything matters in life, some things a little and some things a lot, we just don’t know which is which.
What does everything mean? Well everything can include the books and articles you choose to read, the blogs you choose to read, the TV shows you watch, the YouTube videos you watch, the conversations you currently have at the dinner table, the conversations you had with your parents when you were a child, the people you hang around with, the conversations you overhear when you are going to get your cup of coffee, the images you see on a daily basis, and the list goes on and on.
You are a sum total of all your collective experiences, thoughts, actions, etc.
At first, when I realized that, I was devastated. I was reading the wrong books, the wrong articles, the wrong trading forums, hanging with the wrong people, etc. I bought the wrong trading books. I printed out the wrong trading ebooks and articles. I read thousands of the wrong trading forum threads and posts. I downloaded and tried the wrong forex robots. I spent a few years accumulating the wrong beliefs and philosophy about life and trading. I had hoards of the wrong information all around me. It can be initially devastating knowing that you can’t get those years of your life back. However, there was a seed of triumph in this adversity.
Since all your experiences, thoughts, activities, etc have all made you what you are today, that also offers immense hope!
If you can read the right books, articles, etc, watch the right videos, listen to the right audiobooks, read the right blogs, have the right conversations, be around the right people, think the right thoughts, develop a powerful life and trading philosophy, take the right actions, then you can achieve anything you could ever want in life.
The process always works. It works for good or evil. It works for success or failure. It works for poor people or rich people.
Sort of like Ed Seykota’s trading quote:
Win or lose, everybody gets what they want out of the market.
You can just change it to:
Success or failure, everybody gets what they want out of life.
The thing that spurred me to write this blog post is that I recently had an experience that made a big impression on me.
Over the past few weeks I met an acquaintance who I hadn’t seen in years. Years ago he was really excited about trading and wanted me to teach him what I knew. So one day I stopped by his house and spent a few hours showing him what I knew. I taught him about some stop hunting and option barrier tactics. Back then I didn’t know as much as I know now and wrote about in the mastery course, but I did know quite a few things.
He was really excited as I showed him the stop hunting strategy, etc. I didn’t charge him for the training because he was a friend of a friend and I wanted to be a nice guy and help people because I remember other people helping me along the way when I first started.
Fast forward to the year 2013. I meet him again and he asks me hows it going. Within a few sentences and with his own way of asking, he was looking for a hot tip on some stock or trade that could help make him the “big money” and get him out of a financial predicament. I try to explain to him that I try not to make long range predictions, and that I could change my view the next day, etc. Luckily, I was able to end the conversation within a few minutes. I thought I had gotten away unscathed.
However, within seconds after finishing the conversation and turning and walking away… I felt dumber!
This wasn’t the first time I have had this experience. Similar experiences have happened in the years past. Have you ever experienced something similar?
That was the overriding feeling I felt. After speaking to this person and lowering myself a bit so I could communicate with him on his poor trading mindset and attitude level, I felt significantly dumber. I felt like a bad trader. I felt like I had thrown out years of accumulated market experience. I felt like I had forgotten everything that I learned over the years. The conversation had made me feel stupid.
Had I gone back to the office, and placed some highly leveraged trades with that same feeling of being a lousy trader, who knew how much money I could of lost. Luckily I got my head straight and read a key lesson or two from the mastery course, read some trading quotes, looked at my trading plan, etc and it solved my problem. I was back to being the trader that knew how to trade. I was back to being my old self. I remembered my good trading ways. I had that winning feeling again.
The point I am trying to make is that there are people out there who, if you stay in a conversation for too long, can poison your mind. Pretty soon they have you thinking about the wrong things, talking about the wrong things, and eventually acting on the warped beliefs they imprinted upon you in the conversation.
Of course, as the years go by, you become more and more skilled in handling these situations and making sure you don’t let other warped opinions affect your trading. You learn how to rebound faster, even instantaneously at times. Years ago, these experiences may have caused trading losses and taken me out of the game for days or weeks. Now I can usually handle them within a day or a few hours or less. Still working on making the process instantaneous.
What are some poor trading attitudes and thoughts? I can only speak from my own experience, but they can include:
- Searching for hot tips
- Searching for day trading chat rooms
- Searching for signal services
- Searching for the holy grail technical indicator (there is nothing wrong with searching for the holy grail, so long as you realize the closest to the holy grail is the macro volatility with order flow trading)
- Searching for the forex robot or black box system that you can put on autopilot and will make you thousands per month to pay off the huge financial hole you put yourself in
- Etc, etc
Instead the right trading mindset and habits consist of:
- Look at the risk. Manage the Risk %
- Reward to Risk ratio
- One Day Volatility Explosion – ODVE
- Multi Day Momentum Move – MDMM
- Global Macro Move – GM
- Stop Hunting
- Option Barriers
- All trades are not created equal
- current volatility, versus near future volatility
- News/Sent/Fund/Macro order flow
- Global Macro
- Battle of Scenarios
- Has the market reached the macro exhaustion point yet?
- Etc, etc
As the book Reminiscences of a Stock Operator writes:
A man cannot be convinced against his own convictions, but he can be talked into a state of uncertainty and indecision, which is even worse, for that means that he cannot trade with confidence and comfort.
If you have the wrong conversations, then you may well find yourself placing new trades you never meant to place, liquidating positions you never meant to liquidate, testing out worthless systems and strategies you never meant to try out, and on and on.
That is part of the reason why I believe George Soros once said decades ago:
I don’t spend much time with the people in the stock market. I find them boring.
It seems Soros realized that, Everything Matters.