Randy Howell explains how traders can override a fear-driven brain by developing self-observation skills and accessing internal resources like discipline and patience. He argues traders must notice their own limiting beliefs and internal dialogue to exploit others' fear in markets, making mindset training as crucial as statistical systems.
How should traders be developing a probability based state of mind? We're talking about that today with Randy Howell. Randy, you have some ideas on that topic?
I do. The first thing is they start realizing that the brain is built to produce certainty and that you have to go and develop, you have to develop the state of mind that can engage probability. Your brain is fear based. It's been that way. It's not going to change. You have to learn how to regulate it. And when you do that you also discover that there are certain elements within the self. Discipline, for instance, is an indwelling resource. Impartiality is an indwelling resource. Patience, so necessary in trading is an indwelling resource within the self as is courage. These elements live within you and if you can find a memory of when these parts, these emotional feelings showed up, you can actually extrapolate that and you can build the mind so that those elements become a working part of your awareness rather than fear based thinking.
Now for a lot of traders the idea of doing some kind of statistical based trading actually seems very intuitive. That's what they're accustomed to doing. But it sounds like the other component of acknowledging some of the emotions behind this is key.
A really great trader, what he does is he smells the fear and what he does is he organizes himself to be able to take advantage of others fears. Okay. And ultimately what happens there is he's disciplined, he's not acting from statistical analysis. He sees that as something. But what he has developed is an intuition of being able to see the supply and demand and he knows the blood there and he knows where they're trapped. That's state of mind management.
So essentially it's really noticing when others are feeling fear and being able to yourself to move beyond that.
Absolutely. But before that you have to notice yourself. You know in my work I train people to observe self. I've trained people to observe that they are not their thoughts, they are not their beliefs, those are things that occur within mine. Unfortunately we have to wake up and realize that we are the chairman of the board of a trading committee of the mind and you've been asleep and you need to wake up because very destructive elements of the self have taken over your committee and, and you need to produce the constructive elements. When you do that, that's when you can smell the fear of others.
Now is this related to the term limiting beliefs? That's become pretty popular in the last few years. Does that factor in here?
Oh absolutely. When you are listening to this, I call it the internal dialogue. When you're listening to the mind's thoughts and if you don't think you have them, just try to pull the trigger and you'll hear all this. You're going to lose. You're going to lose. What are you going to all that stuff. That's the internal dialogue. Those internal. Your thoughts are actually the voice of your beliefs and the ones you're looking for are the voice of your self limiting beliefs. There are within you also powerfully affirming beliefs. But you have to develop those and you have to develop yourself as a trader. You're not going to walk in and just run this machine platform and methodology without training mind.
Well, great perspective. A lot to think about. Thank you so much.
You're so welcome.
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