Some people do call me crazy – but when they see some of the ideas and strategies I have, and truly understand them and what they can do for them, then they usually change their tune. I admit that I have a unique way of explaining the trading journey and what it takes for trading success – that you probably won’t find anywhere else.
If you do think I am crazy – then perhaps I am, or, perhaps I am just a bit closer to the truth of the markets than most other people. It is my suspicion that if you are following this blog, you believe I know a few things about the truths of the market and the trading journey, that most people don’t know, and you are here to learn those insights as fast as possible.
Another Trading Secret…
One of the secrets I have discovered for trading success in general, as well as amplifying trading profits, is that you can’t just focus on the trading system – the method for determining when and what to buy or sell.
Now, I am not one of those people who preach about how you don’t really need a system, that you only need money management and trading psychology to profit from the market. You know, the people who say you don’t need to know the “Why”or “How” of price movement. I listened to such people in the early days, who I shouldn’t have listening to, and I didn’t make much progress. I just got lots of frustration, pain, depression, losing a bit of money, and most importantly – not building any solid trading foundation for future trading success.
So I want to be clear: I believe the trading system, / trading philosophy / trading strategies / trading habits are one of the most important elements for a traders success. Because if you can truly see in the market, and truly know inside of you how the market works, how to make money, have placed a few successful trades and seen the profits surge your equity balance – then you will tend to have more energy and inspiration for tackling the other trading dimensions of money management / position sizing and trading psychology. So that way you can invest all your trading system and philosophy and habit knowledge and skills and infuse them with better position sizing and trading psychology. You will be more excited to do it, because you can rationalize to yourself why it is worth it. You can see why it is important and visualize the potential profits in your mind. It just makes so much more sense to you!
Take the flip side, where you don’t know anything about trading systems/philosophy/habits, and you start pouring your heart and soul into learning about money management and position sizing and trading psychology. And then what happens? You are going to apply those things to what? To a great system that you don’t have? To an amazing trading philosophy that is not existent? When you don’t have a powerful trading philosophy that allows you to sort out the information throughout the day, to form some habits and action steps, then that is when you have struggle and suffering in your trading career.
So after you start developing some sort of trading system and philosophy, and are firmly on the path of mastery of those, what are other things you can do speed up the process. Where can the potential roadblocks to progress and attraction of trading profits come from?
One of the categories is in personal development, also called Self-Help. I like to call it personal transformation, because if you go on the process over a period of years, you grow and grow and after 5 or 10 years, you become unrecognizable from the prior you. Just so much more knowledge, wisdom, happiness, money, success, etc. It is truly a remarkable transformation.
Why is personal transformation so important? After having gone on the trading journey, and also watched other people go on it, some succeeding, other failing, I know that when a trader is first starting out, they don’t just need help with their trading system, money management, psychology. They need help with their entire lives!
It is so true. When I first started, I thought I only needed help with when and what to buy or sell. It turns out, I needed help with my entire life. Just speaking to most aspiring traders for 20 seconds and seeing what questions they ask, how they speak and carry themselves, most need help with many aspects of their lives. It could be their finances, their relationships, the way they view the world, their attitude towards work and discipline, their health, and so many other things. It is rarely the case that the aspiring trader only has a problem figuring out knowing when and what to buy and sell.
In this spirit, you want to pursue and develop what I call the…
Triple Trading Advantage in Life:
I advocate being a triple threat and having a triple edge in the market and life. Triple threat and edge meaning that you have these three things working in your favor:
1. You have the massive and important trading knowledge and strategies so you know what to do on a daily basis to interpret the market for opportunities. You have some guidelines for knowing what and when to buy and sell. Some method for position sizing, etc. The very strong trading foundations, from which you can go wherever you want to go. I teach extensively my trading strategies in the Order Flow Mastery Course.
2. The second advantage is that of personal development / self-help / personal transformation.
One of the most amazing things about America, is that there has been a vibrant personal development industry producing books, audio recordings, seminars, etc, over the past few decades to empower people to better their lives. This industry does not exist in many other countries. A round of applause needs to be given to all the personal development authors and speakers and teachers over the past few decades. Without them, people would just be left to whatever is taught in schools, and that is not enough for maximum personal achievement.
Back to why personal development is an advantage. It is so you can know the value of philosophy, attitude, habits and work ethic and discipline. To know how to deal with people, how to deal with criticism, overcome intimidation, overcome false beliefs about money and wealth, develop resilience, develop perspective, have ambition and goals/vision, control over your finances, control your time during the day. To know how to structure your life, to support your ambitions and vision.
You can go through life, and you meet wacky characters. Their philosophy on life is so foreign to you, when you learn how to really trade.
One person I met told me he just wanted to make just 1% a month. That was it – a steady 1%. I told him, you just don’t know. You may make 3%, make 20%, lose 2%, lose 4% during the month. You may make 20% or make 50% or make 300% or be flat or lose 5% for the year. You cannot guarantee yourself “just +1% per month.” It “sounds good.” But it is foolish to try to box yourself in like that. Completely devoid from the reality of the markets.
Another person I met, I told him what I do, and he started rambling about the conspiracies of the market and how it is rigged. And that how he plays the market is the smart way – he said he buys penny stocks, and they go up when the market goes down. That was his philosophy and belief. When you meet such wacky characters – you don’t walk away – you run! Wish them well and love and joy in their lives – and run! You don’t try to change them (heaven knows I have tried so many times) – you show them love and empathy, give them a hug – and you run! Go find the amazing traders to be with. Go read some of the amazing trading books. So much of your life is dependent on the people you are with and the information you are exposed to.
Jim Rohn once said that “Everything affects everything else. Some things affect us more than others, but everything we do has an effect on everything else we do.”
Which means that as you advance on the personal transformation journey, you will interpret the previous and new trading information in your life in a new and better way. Can you imagine reading the same trading book you read years ago, and it seems like an entirely new book, because your philosophy on life and the markets has changed? That happened many times to me.
The first time I read the Market Wizard book, I didn’t understand much. When I came back to it years later, I got a heckuva lot out of it – because my philosophy on life and the markets changed. I knew about the universal principles of speculation. I had some daily habits to work with.
3. The third category – is that revolving around things such as Spirituality, Metaphysics, Consciousness, Meditation, Love, etc.
When I heard Ray Dalio talk about how he does Transcendental Meditation – I listened. Maybe I didn’t do it right away, but it was another category of potential improvement and potential edge that I wrote down for the future. When you get to my level, you start looking for any edge you can.
Some people struggle in trading – because they don’t have their mind right. They have all these negative voices within them, playing out all these horror scenarios. They have difficulty quieting and focusing the mind. So they can generate some tranquility and peace within them – so they can go solve their challenges in the best manner possible, and even perhaps access new ideas that you never would have thought of. So they do not try to solve problems out of some irrational fear, or intimidation, or blanket of anxiety that they are carrying with them during the day – every day throughout their lives. Removing the neurosis, false beliefs, and blanket of anxiety that some people carry around on them, every day, is critically important.
I remember one person telling me that I was going all spirituality and metaphysics on him. And I was trying to explain to him how I did study the market deeply to try to get as close to the truth as possible, but that I also didn’t stop there. I first interpreted vast amounts of information flow, books, articles, etc over a sustained period of time, in order to form my trading strategies and my trading philosophy, etc. So I could apply what I learned. Trying affirmations, spirituality, metaphysics, etc, without some firm basis in practical, logical information and strategies to follow, may not get you very far.
I will cover this more extensively in another blog post.
Most people don’t have this triple edge in life. You start getting this triple advantage in life – and everything starts to change and quicken. Really beautiful types of changes in your life.
Now let’s go into the personal development books that can transform your life in ways that you cannot possibly imagine over the next year.
If you are not achieving the trading results you desire, and you have never read a personal development book, and still blaming other people, circumstance, etc, then many of these books can be very valuable to you:
Recommended Personal Development Books:
The Five Major Pieces to the Life Puzzle – by Jim Rohn
I would call this one of the simplest, shortest, and yet, most powerful books on personal development. Clocking in at just 125 pages, you can finish this book in an hour or two if you are a fast reader. It talks about the five major pieces of the life puzzle, according to Mr. Rohn – which are: Philosophy, Attitude, Activity, Results, and Lifestyle.
“You can have more than you’ve got because you can become more than you are.” – Jim Rohn.
Looking Out for #1 – by Robert Ringer
Robert Ringer released his first books in the 1970’s, and he had plenty of real world experiences to back them up- having been broke in Beverly Hills and living in a Ryder truck, to becoming a best selling author. If the world seems confusing to you, if people are harping at you that you are focusing too much on yourself and you do not know how to handle them – then this is the book for you. It has a fitting title: Looking Out for #1. Who is #1? You are!
You can also get this book for free at RobertRinger.com
“You don’t need ‘credentials;’ you don’t need the approval of others; you don’t need the crutch of reassurance from acquaintances, as this may only confuse you. Leapfrog to exactly the point on the ladder where you think you belong.” – Robert Ringer.
Winning Through Intimidation – by Robert Ringer
Most people are intimidated. They are acting out of fear. Could be fear of some people. Fear of failure. Fear of losing money. Fear of death. All this intimidation that they have is restraining their trading potential and life potential as well. This is not something that can happen to just the aspiring trader, it can happen even in among the top hedge funds.
When Stanley Druckenmiller went to work for George Soros, he said he felt intimidated.
“The first six months of the relationship were fairly rocky… Part of it was my fault because he would make recommendations and I would be intimidated.” – New Market Wizards
He had to overcome that intimidation, which contributed to his trading results being superb in the early 1990’s for many consecutive years.
This is the book that can help you overcome intimidation. Just seeing the title alone in your office can help you.
“In fact, I became convinced, and still am today, that the problems most people encounter in trying to achieve their objectives – in business, personal relationships, and virtually all other facets of life – stem from being intimidated by others.” – Robert Ringer
The New Psycho-Cybernetics – by Maxwell Maltz
Having a problem with any area of life? The secret may lie in what is called the “self image” that you have of yourself. The self image being the blueprint, the picture of the sort of person that you believe you are. This book contains a treasure trove of information and tactics – from which to be more financially successful, correct prior childhood programming that does not serve you any longer, be more creative, how to attain peace of mind, get that winning feeling,etc. Truly a must read for someone seeking success in any career!
“Numerous case histories have shown that you are never too young or too old to change your self-image and start to live a new, amazingly different life.” – Maxwell Maltz
The Success System That Never Fails – by W. Clement Stone
This is the book written by the man who lived until 100 years of age! He built a fortune in the insurance industry.
This book talks about the three things necessary for the success system that never fails. Giving a quick rundown on it, you require:
Activity Knowledge: information that you convert into knowledge. It could be information from your own personal experiences, from books, articles, successes and failures of others. From you trying to learn all you can about your career and industry.
Know How: the knowledge and strategies you learned in the previous phase put into repeated action, is Know How! It is the proper application of the knowledge. You convert the knowledge into the technique and daily habits. You learn this only by doing.
Inspiration To Action: Once you have activity knowledge and know how, then you need the motivation and inspiration to put it into ACTION! Some people learn amazing skills, perhaps even work for a little bit during the year, but slack off. They may have great talent and potential, but no or little inspiration to action.
The Charge: Activating the 10 Human Drives That Make You Feel Alive – by Brendon Burchard
Brendon Burchard has identified 10 different drives that can help you lead “The Charged Life”: “A consciously designed existence that feels evenly engaged, energized, and enthusiastic.”
The 10 drives he has identified are Control, Competence, Congruence, Caring, Connection, Change, Challenge, Creative Expression, Contribution and Consciousness.
It is really a phenomenal book with plenty of questions to ask yourself and action steps you can take. You can get it for just shipping and handling by clicking here.
The Slight Edge: Turning Simple Disciplines into Massive Success and Happiness – by Jeff Olsen
Why do some people succeed over the course of 5 or 10 years, and others are just consistent failures? Is there just one cataclysmic event that happens, or it is a series of small choices?
This book advances the principle of The Slight Edge. Either you have this working in your favor every day or you do not.
“The things that take you out of failure and up toward survival and success are simple. So simple, in fact, that it’s easy to overlook them. Extremely easy to overlook them. It’s easy to overlook them because when you look at them, they seem insignificant. They’re not big, sweeping things that take huge effort.” – Jeff Olsen
The Strangest Secret – by Earl Nightingale
What is the strangest secret? I am not going to spoil it for you. Buy the book to find out!
“Only one out of 20 does that. That’s why today there isn’t really any competition, unless we make it for ourselves. Instead of competing, all we have to do is create.” – Earl Nightingale
Acres of Diamonds – by Russell Conwell
Some people think they need to go to far flung countries to find success. They think their problem is in the city they are living. That may be true in some cases where the country they live in lacks freedom, property rights, etc. And also depending on what career they choose, they may have to change cities, even in America.
I remember hearing stories about people who wanted to go to Dubai, India and China during their boom in the mid 2000’s from the United States. As if America wasn’t good enough for them. I have heard of other people wanting to travel to the Alberta Oil Sands in Canada, and go to Australia to work in the mining industry from America, thinking it was easier money. Nowadays, with the information explosion and quality of life rising around the world, the problem is more and more in an individual person’s philosophy, ambition, and discipline, rather than in the location that they live.
This book tells the story of a man who did not realize that he had gold in his own farm, but sold it so that he could search for riches elsewhere. I remember another story I heard that a real estate investor spent so much time and energy and money traveling all over the country to make deals. At the end of his life, he realized that if he had just taken an hour long walk or drive around his own town, buying up property that was for sale by the beach, he would have been richer, and not have endured such grueling travel!
If you have some misconceptions about rich people and money, then this book has some nice quotes as well:
“Ninety-eight out of one hundred of the rich men of America are honest. That is why they are rich. That is why they are trusted with money. That is why they carry on great enterprises and find plenty of people to work with them. It is because they are honest men.” – Russell Conwell
Lead the Field – by Earl Nightingale
Earl Nightingale was one of the older personal development authors from the 1970’s and 1980’s. Don’t let that put you off though. Plenty of hidden gems to be found:
“What we’re really after is not escape from out perplexities and frustrations, but a triumph over them.” – Earl Nightingale
Leading an Inspired Life – by Jim Rohn
A hefty book, at over 400 pages, but don’t let that scare you. Jim Rohn is one of the very best success philosophers for those first starting out.
This book covers such a wide selection of topics including Discipline, Goals, Ideas, Leadership, etc.
“You’ll need a desire to reach your destination so you don’t keep stopping for coffee and a piece of pie every ten minutes.” – Jim Rohn
Think and Grow Rich – by Napoleon Hill
This book took twenty years for Napoelon Hill to research and put together. I couldn’t possibly fathom spending that long to write a book. Nowadays, things are done much faster.
Twenty years to put together, and it most certainly is a masterpiece! One of the best selling books of all time.
The Science of Getting Rich – by Wallace D. Wattles
This little gem of a book was written in 1910. It is remarkable that the author had so much insight back then. A powerhouse of quotes embedded in those paragraphs.
“Getting rich is the result of doing things in a certain way.”
“Whatever may be said in praise of poverty, the fact remains that it is not possible to live a really complete or successful life unless one is rich.”
The Greatest Salesman in the World – by Og Mandino
Mandino has written both a motivational story weaved in with very basic success principles. If you are feeling down on life, this could be one of the books you should read.
“I will laugh at the world. No living creature can laugh except man. Trees may bleed when they are wounded, and beats in the field will cry in pain and hunger, yet only I have the gift of laughter and it is mine to use whenever I choose.” – Og Mandino
The Richest Man in Babylon – by George S. Clason
If you are struggling with money, living paycheck to paycheck, have no system for knowing how to portion it, etc, then this book can be for you. A mixture of ancient story weaving in the 7 Laws of Money from the Richest Man in Babylon.
“Our acts can be no wiser than our thoughts. Our thinking can be no wiser than our understanding.” – George Clason
I have cherry picked some of the amazing books above that have greatly helped me along my journey. I strongly recommend them! If you are looking for a more expansive list, then click here.
Robert Ringer said the book Action!: “What a tragedy it would be to live eighty years and never get around to buying and reading the book that could have played a major role in your success.”
I couldn’t agree more. Who knows what amazing places you can end up, when you find the right information for you at the right moment in your life?
Whatever challenges or problems you have, write them down, and go search for information and knowledge! There is no excuse nowadays with the information explosion that has been occurring over the past two decades. If you don’t find the information you need, and never searched, then the only shame is on you.
Here is another story:
President Franklin D. Roosevelt once asked retired justice Oliver Wendell Holmes why he was reading Plato. Holmes was 92 years old at the time. Mr. Holmes responded: “To improve my mind, Mr. President.”
Can you believe that? Reading at age 92 to improve his mind! Most people stop reading anything good after college or after high school, if they ever read anything good there at all.
If you believe that your trading system, strategies and philosophy is the problem, then click here for the Order Flow Mastery Course.
If you believe that some aspect of your personal development is lacking, then consider the books above!! They most certainly help in reprogramming your mind for more success and wealth thinking.
To recap, you should earnestly work towards attaining the triple advantage in life. This approach can work for all types of fields and careers, not just in trading. Attain the skills and knowledge and strategies about your particular field. Do personal development as much as you need. Do some meditation / spirituality, etc work to raise your love and consciousness for the world and people.
Early Bird List For My New Book!
I am currently in the process of writing a new book on personal development / self help / personal transformation. If you are blown away by the way I explain things in this blog, then you will be even more amazed at what else I have to share with you about the journey to success and achievement. If you have any questions regarding this topic, that you think should be covered in my book, send me an email with your thoughts to: email@example.com
This is not a book you want to miss. It is gearing up to be one of the greatest books ever. And I am not joking.
**New Trading Book Alert!
A new trading book has been released. A new biography on Jesse Livermore. If you are in the UK, it may be available in local bookstores there. Otherwise you can have it shipped from there.
Why should you read it? Livermore was of the first people who did macro trading, though they didn’t call it that back in the first part of the 20th century. He called it “general conditions” and “underlying conditions.” Interest rates were sometimes referred to as “call-money rates.” He rode the 1920’s bull market amazingly well, and used his higher equity balance to catch the first leg of the 1929 crash with massive position sizes. The book says he shorted $450 million worth of stocks a few weeks or months before the 1929 stock market crash.
He was trading very large position sizes, and was even called to the White House to meet with Woodrow Wilson about some big positions he had taken in the market.