How to Stop Giving It All Back

Every trader goes through this. Have you ever been in a situation where you've been trading well and you can go, oh, my gosh, I can really see how this can work. And the truth is, you start feeling good, you go, yeah, I've got this together. I finally see myself putting it together. Who wouldn't want to feel good? Well, it just so happens that feeling good is actually going to destroy you. Most people say to me, hey, look, Randy, if you can just get me past the fear, I'm going to be okay. I just. That's what's stopping me. And they work, and they finally get the moment of where they're past that fear. Fear. Only then do they realize that there is another demon on the journey into trading. It's called overconfidence, Euphoria. And it is the part of you that you start and you're having a good day, you're putting it together and you feel good. That's the euphoria, friends. That's not your friend. That's euphoria. And what that euphoria is going to do is it's going to have your mind thinking that the good times are going to roll on forever. Everything's going, I've got it. I finally. I've got it. What you've actually done is you have actually moved into a delusional moment. You have just in many ways, you're feeling dopamine rush, you're feeling good, you're doing well, you're winning, and your brain is rewarding you by a little hook of dopamine, something like very similar to cocaine. And all of a sudden, you're no longer in the right mind to be trading because your overconfidence is building from the euphoria of the dopamine. And before you know it, it might be like the end of a trading session. You get through the morning, you've done really well, everything's great. You are so revved up for the next day and for that afternoon session. And you're going, I'm ready. I mean, I'm going to. I'm ready to make some money. And then you get in there and you fall flat on your face, you give it all back and then some. That's euphoria. That's actually recognizing that you need to up your emotional intelligence. You need to come to the moment of recognizing that feeling good.

While trading is not allowed, in trading, what you can discover is discipline, patience, and impartiality are the three emotional programs that you want giving rise to the trading mind. And what you're doing here and you don't know about it. Everybody wants to feel good. If you're feeling good. Yeah, you want more of that? Well, that's what the dopamine is trying to build as a habit. And in doing, though, though you fall victim to the dopamine of the good times are going to roll on forever. That's the first way that people sabotage themselves, where they start doing really well and then giving it back. The second way is a little different. It's scarcity thinking. That's where you start trading. Everything's going great. You're having everything and you're going, wow, man, this is really going good. I like this. And then you start going, oh, my God, it's going too good. Oh, my God. If it's going good like this, then, you know, the shoe has to fall. Something bad has to happen. That's the scarcity thinking. A lot of people fall into this, oh, this is just going too good. So something bad's got to happen to counteract it. That just doesn't happen for me. And then all of a sudden, what you do is you actually create the potential for you to have, guess what, A very bad moment in trading where you give it all back. Now remember, this is coming. Scarcity thinking is not bad. You know, basically, it's what people get. It's how people get stuck in jobs for long periods of time because they're scared to go out and explore because something bad may happen. Well, it's that kind of thing. You get into trading, you, you've got this steady job, you don't want to risk anything. So you're sitting there and going, okay, if I learn how to do this, I'll finally be able to free myself of that job. And then you actually have a couple good days, good weeks, but there it is. That scarcity thinking kicks in and starts having you believing that something bad is going to happen. And guess what? You actually create that possibility.

Okay? And the trading gods will certainly allow that one and see you through to the end. The third one that I want to discuss is where the trader.

In his limbic learning, subconscious learning, has connected his net worth with his self worth. This is dangerous because what happens is that the caveman brain doesn't know about money. Money. If you gave a bunch of money to a caveman, he would be befuddled about what to do. He might use it for light tender and stuff like that. But what caveman does know, caveman does know power. The power to survive. And what happens is that in Our brain, in our ancient mammalian brain, those two get merged and all of a sudden it's not, to the caveman, it's not money that you're trying to make, it's the power. And all of a sudden what happens, you start getting more and more power and you start going, you know something, okay, okay, okay, I'm here and I'm beginning to prove my worth as a human being by my performances. And all of a sudden though, it's what you discover is this. Your net worth.

Has a range of self worth. A lot of people will come to a particular moment where that's as much net worth, that's as much self worth as they have. And what they do is they start losing. I once worked with a trader who had been trading for 15 years with a high six figure account. He was a good trader, okay? And he learned, earned his living, he did all that stuff with trading. But when he came to this moment, every time he went over six figures and went into seven figures, he would lose back down. Finally it befuddled him and he ended up coming to me and we started talking, we finally finding out something. It just so happens that he grew up in a blue collar family in Detroit where his father worked for the union at an automobile plant. And of course labor and management were always at heads. And it was a lot about money. And you know, the thing is these executives were getting millions of dollars. You know, they'd make a million dollars. Meanwhile, they saw the labor saw themselves as being cheated some of their own due cash. And this guy got really angry at the dinner table and pound his fist. Nobody's worth a million dollars. And there's this boy growing up right there absorbing all this. Later, that boy grows up into a man and becomes a trader. You guessed it, he's the guy with a six figure account that every time he goes over into seven figures, a million dollars, he loses back down to where he's in the familiar pattern again of being, okay, enough, these are the rules of my inherent worth. These are the rules of my self worth. These are the rules of literally how I can make money and have my net worth evaluate where I believe that I should be. Now, this guy was able to disrupt that and find out that he could build another way of being in the world. And so he ended up going into the seven figures and was fine. Took him some effort though. It was a tightly highly myelinated circuit that he had to be able to disrupt and to be able to find what I'm asking you to see though. When you start saying, I don't understand what's going on.

How do I trade so well and have it going and then blow it and then some. Well, these three pathways, we'll talk about it a lot. You're going to be able to see, to look. Is this about you getting euphoric and then absolutely not having the right mind to be able to trade because of the euphoria. Even though it feels good, it's dangerous. You don't have, you don't have any place for a feeling good sensation while you're trading. It is discipline, it is patience. It is the last one, impartiality.

That's the emotional programs you need. You don't need feeling good. The second one is that you're in this situation of where it's scarcity thinking. You start earning money, getting gunny and you go, oh, wow, wow. And then all of a sudden, oh my God, it's going to be taken away. Something bad's going to happen. Scarcity thinking, that's something that also has to be observed in you. It's not going to go away by itself. And the last one is the confusion between net worth and self worth. You're going to have to disrupt that or you're going to get stuck at a particular level. Because most people, most traders believe they have to work hard in order to earn money. It doesn't work that way in trading. You don't work hard. You have a little bit of stuff like this. And at the same time though, is you need to look at your money conversations, your money beliefs about your value.

In capital and your value as a human being. Friends, it's bigger than you think. If you want to learn more, come to my website, look at more videos on my channel, on YouTube, take a look and get, at least get my free book, maybe read my book and start seeing the theoretical foundations of emotional intelligence and then start really saying, tell me something. Do I really want to become a successful trader to the point of rearranging the beliefs that I hold about managing uncertainty so that when I look at my P and L statement, I'm no longer seeing the P and L. Oh my God, please don't, don't show that to me. No, you're looking at. Oh my God. What Randy is saying is that P and L statement is projecting your beliefs onto the markets and seeing how effective they are for traffic, extracting more capital out of the markets than you're putting back in. And do they need some work at the level of belief? Come and learn, friends. Come and learn. Thank you.