Breaking the Habit of Impulsive and Over Trading

Last time we looked at a big, huge problem traders have we looked at entry problems, that fear, that fear of loss that stops us and grips us from being able to actually get into trades. Well now we want to actually look at the opposite. We want to take a look at traders who have difficulty just impulsively jumping into trades. Let's take a look at what is actually going on with them that produces such a disaster. These are the guys who blow up accounts. The other people may bleed from like a thousand tiny cuts, but the alphas, the, the ones that want to win, the one that are ready to make things happen, these are the ones that jump into trades impulsively, they over trade and then they revenge trade and they blow up accounts. Let's take a look at this. What I want you to imagine is, I want you to imagine a trader, he's been successful in another career or she by that matter. And they come in and they think, you know something, let's just say this guy literally has a tag on his car. Got to be number one like that, the alpha. I've got to win, I hate losing. And everything is about making things happen. And you'll look at these people and they'll have long track records of being very successful in athletics, in corporate, in performance and in business. And then they have this money and they think, well, I've got to do something next. And they start looking at trading and go, wow, boy, this is just the gold mine. This is exactly what I want. It's got, you know, I've got capital, I can really do this. And I just need to learn how to trade. Never, never thinking that the mind that they're bringing to trading that has been so successful in one domain, in one environment is going to be a problem in the next. Well, here's what happens with the alpha. This is the one that over trades, this is the one that revenge trades. Remember?

Here's an example. You know something, Randy? I have studied this stuff. I know what I'm doing. I have literally planned this trade and I am ready now to trade my plan. And he gets in his office, he gets everything cranked up, he does his charting and then he starts bringing his charts up and then he starts looking and he says, you know, I'm going to tune for a while. I'm going to sit here and get so that I'm in, really in, I'm in harmony with the markets. I'm not going to do anything rash or anything like that. At the same time, what you will hear is, okay, I'm going to make some money today. How many of you sit there and get focused? I'm going to make money today. I have a limit. I know exactly how much I need to make. I'm going to make money today. I've got the mind, I've got the winning attitude. I've got all that. Then you walk in the setup, start happening and you, you have a plan, you know what you're supposed to be doing. But in that declaration, I'm going to make some money today. I'm going to be a winner today. You've also set your mind up not to look for trades, like let them come to you, but to stalk trades. And before you know it, and this is what's famous about Alphas, is that they can have their mind, right? Okay. And you know, I teach a process that you get your mind in the right place. The traitor state of mind for the Alpha that exercise, that skill to produce that is good for about maybe 30, 45 seconds. Then something else kicks in. This Alpha, this wanting to make things happen. You've got to be trading to be trading. And you start looking.

Seeing opportunity, and you start going, oh, my God, look at that man, that one's getting away. And you see a couple of those go. And before you know it, you've jumped in that trade.

Is it the one you planned? No. Does it go your way? No. It turns against you. And of course the Alpha Nu wants to win. He doesn't want to lose. He. It jumps back on it puts money down and revenge trades and friends. That's how it goes. Once it. And once it just absolutely crashes through the stop, then you're jazzed.

And I want to win. I don't want to lose.

It's that mentality, is that Alpha mentality. And then before you know it, you've drained your account, you've blown up a chunk of change. Okay? That's the alpha that has to change. Because ultimately your job is not to stalk. Your job is to patiently wait.

For the markets to show you what it's willing to give you. That's so alien to the Alpha. The ones that want to make things happen, do it now, that Nike thing, just do it. And you discover it'll get you in a lot of trouble. You've probably seen this. And to be honest with you, the Alphas, when you really get down into their head and they realize, you know something, I've been chasing strategies for a long time, but I'm recognizing it's me right here between my ears and one of the Things that Alphas have to discover about themselves is that winning is a lot about their power. It's about mattering. It's not about the performance and doing well. It's about if I make money, I expect to make money. That's how I see myself. That's my esteem.

The market gods don't care. So you're sitting there and you're looking at it going, wow, at the very bottom of it, maybe I don't have a fear of loss, but what I do have is I have a fear of not mattering. And if I make money, if I win, then I'm a winner. Friends, that is behind so many people who over trade and revenge trade, no matter how much money they've made elsewhere. That mine, that Alpha mine that was so successful there just doesn't fit the environment.

Of trading mine, which is based on probability, not certainty. And what you discover is the one thing you're going to have to do as Alpha is you're going to have to let go of the need to control. You're going to have to realize that I'm also going to have to stop hating to lose. I'm going to have to become a really, really good loser to minimize my losses to trade for another day. That's ultimately what it comes down to. And you realize that you get away from trying to control outcome and what you focus on is controlling the one thing that you can control.

The mind you bring to performance. When you do that, you produce the psychological edge that gives your methodology.

The edge. You've got it going. You're in the zone because you're no longer trying to make things, things happen. You're letting them happen and you're responding to them. How do you work with that? Two things, friend. Emotional regulation. You have to become an observer of your body. So you can actually see that split second shift in the alpha saying, I got my mind in the right zone. Then suddenly looking for prey, you've got to find that and you have to cool it down. The second thing is with mindfulness you have to be able to start and go, I'm stepping back out of this and I realize that's one particular organization of itself, but it's not the one I need here. And you start using mindfulness to rebuild, to reinvent the self for probability management. Your brain always is going to be looking to control outcome, to be right, to predict outcome. It wants that control and not to lose.

That Alpha mind has to change to probability mind. You can learn how to do it. It's not easy, but it's not impossible. It's just a matter of whether or not you want that or not. If you want to learn more, come to the website, okay? Start looking at the free stuff. Take a look at the article that's associated with this video, come to the webinar and learn more about this. And really start seeing. Okay, I'm alpha. That's neither bad nor good. It's just that it worked really well in one environment, but it doesn't work in what I'm doing now. I have to relearn. I have to retool the mind I bring to trading. Yeah, friends, that's what you have to learn. It's not easy, but it can be done. And we can teach you. I wish you well with your trading. I really do, and I thank you for your time and have a great time. Take care.