Self Mastery of Your Trading Psychology

We're going to be talking about the self mastery of your trading psychology. And where we start is what happens when you keep losing composure of yourself while you're trading. You know, this is a game where you're going to be losing some. It's not going to always work out. This is on a thinking level. At the same time, you get into these situations and all sudden that fear of loss kicks in really good. And that urgency to get in, the urgency to make up for prior losses, that just kills right there. And yet it's always there. And the, the question is why? Why after all this work you've done, the knowledge you've acquired, you know how to trade, you've proven that on your paper trading. But when you get in there and the heat's real, okay, all of a sudden what you do is you discover yet again is that you lose your composure just when you need to really have it down. What's going on here? Well, let's start with just an understanding that one, the brain that you brought to trading is not going to be the one that brings success in trading. You go, what? Why? The brain that you brought, okay, from our caveman ancestors was built to control the environment. It wanted control over outcome. It had to. It was life and death. It also did not want to lose. Understand, to your caveman ancestors, taking a loss.

Okay, meant you were somebody's meal. You didn't want that, you'd have to fight back. You know, if you were looking like coming in and it's going to hit that stop and it's going to take you out, all of a sudden you start moving stops and stuff like that, you are going back to your caveman instincts right there. And what you're doing is you're saying, I'm going to fight that saber toothed tiger. I'm not going to give up, I'm not going to get consumed, I'm not going to take a loss. Yeah, that's what's happening. It just so happens that that emotional brain, the caveman brain, is enormously stronger than your thinking brain. Your thinking brain produces alibis. It creates a narrative based on what the emotional brain, your caveman brain, has already decided. And herein lies the problem. You can't control outcome in trading, yet your caveman brain is designed to do exactly that. Also in trading, you have to become incredibly good at taking losses, really good if you want to become a winner. Yet your caveman brain just absolutely as diametrically opposed to taking loss, it's death.

The other thing that you really need to grasp of why you're having problems with your composure in trading is this. Your caveman brain doesn't have a clue about money, legal tender. If it were to look at money, it wouldn't see anything there except stuff. It would have no meaning to it. Okay. Yet it understands power. Power is defined as basically survival in the short term. It understands what being able to make things happen. It understands controlling outcome. It understands status. Understand when our ancestors took on a woolly mammoth for the first for the tribe, there were people going to get hurt, die. Yet the people who went and did that attack fed a village, and they got tremendous status, okay? So there was an urgency to take over rational thought to do something nearly impossible. And yet it wired in because it was successful. So you get the urgency. You also have a fear of loss. Nobody wants to die. And yet the key is this. Money becomes a symbolic representation of power. Not only did you have elevation of your status as a leader, but you also got breeding rights. Now, to caveans, it's a big deal because it's all about projecting genetic material into the future through the species. So powerful, powerful instinctual forces are at play here. And winning.

Yeah, it made you feel so good. Yet in trading.

Most dangerous thing in the world is not fear of losing. A lot of people say, randy, if I can get past the fear of losing, everything's good. I'm really great. Thank you, thank you, thank you. Yet when they get that, they find the next one. Winning. Winning produces euphoria. Euphoria as an emotional state really clouds the mind. And it thinks that you're going to be winning as all the good days are here, all the way. It's a drug, okay? That is what you have to learn for self mastery. Winning and losing. The whole idea that we bring, you know that winning is a really great deal. And you push hard. You push hard, you dominate. No, you don't. What happens is the hunting style of a really, truly good trader is patience. It's not urgency. It waits to see what the markets, the jungle will give it. So winning takes on a different thing. Winning to the trader, is only landing on the right side of probability relative to you. It's no reason to get excited.

Okay? Losing is only landing on the wrong side of probability relative to you. Again, no reason to get upset. As a matter of fact, you have to go on to be really good at losing to make your edge work so you can win, so you can extract more capital out of the markets, then you give back in. So we get this whole Winning and losing. We get this whole idea about money and power, and what we see.

Is that trading is the worst nightmare that you can imagine for that primitive caveman brand of yours. The key is that's not going to change. What has to change are the beliefs that you bring to the game of trading, that you project onto the markets. Because ultimately, you are trading your beliefs about your ability to manage the uncertainties and challenges of life, of trading. And your caveman brain doesn't know that you're trading. It thinks you're in the jungle. So you have this problem of where you're going to have to say, how do I begin to work this in my programs? The very first thing is you begin to understand that emotions are not what you think they are. They're actually biological action potentials that overwhelm psychology. They are not psychological. The second thing is, you're going to have to stop identifying with thoughts and beliefs. You're going to have to mindfully pull back out of them. And second of all, you're also going to have to come to a moment of where you have the courage to. To turn toward your darkness, the one that really hates losing, the one that thinks, I'm not adequate, I'm not good enough, I stink, I can't ever do this. You're going to have to face that and realize, no, that's a belief. It's not the truth. Okay? Because in my work, I'm also teaching to be able to find something I call inherent worth. Where you have value beyond performances. You have value just simply because you're a human being. With that, you're no longer using money to be able to bump you up. If you win, you're still okay. If you lose, you're still okay. But this is the big deal. This is the place that you're going to have to go. And you're going to have to reconstruct the psychology that you came stuck with. There's nothing wrong with that psychology. It's just that it's not right for the demands of working with uncertainty in trading. You're going to have to build that psychology so that you as a human being already know your value, your worth. It's not done by making money. And then people respect you, or I'll be a big somebody, or if I. I don't necessarily deserve to win. That's also about believing that you're going to have to look at it and say, what's going on here? And when you do this, what you discover is that trading has become a powerful venture into self mastery. Who would have thought? But you have to produce the self mastery of your psychology in order to become the mind that can produce winning consistently in trading and friends. If you want to learn more, watch more videos, go to my website. Really check things out. Because.

Most people are going to lose. There's only going to be 2 to 5% of people that make money, and you're going to have to decide whether or not you're going to be flexible and adapt to this new world called trading, or whether or not you're going to say no, this is the way it is. I'm going to believe this and nothing else.

And find out whether or not you're part of the 2 to 5% that win and become consistently profitable.

The trading gods don't care. You have to decide if you care. Come and visit us. Take care.

Of it.