Top traders' beliefs and its impact on the results
...one of the secrets of why the best are the best
HOW TO DEAL WITH INTERNAL CONFLICTS THAT BLOCK SUCCESS AND TAKE MONEY AWAY FROM TRADERS?
For professional traders, a key element in their success is their state of mind, the so-called "zona" first described by Mark Douglas in his book "Trading in the Zone." It took quite a while to understand two key things - where it comes from and what hinders it. It turns out that the answer to the first question is almost simple. For the second, on the other hand, it is very complicated, as complex as the human psyche is complex. Fortunately, after much research, study of the topic and consultation, we found a good explanation of the subject and some tools that are useful in the process of transformation.
When I say transformation, I mean the process of changes in the psyche, the goal of which is to make the operation of one's own psyche similar to the way it functions in the best traders. This is not a trivial thing as we'll see in a moment, but these things need to be sorted out because they can significantly affect your well-being and performance.
We will start first by answering the above two questions to move on to describe the main problems that are caused by internal conflicts. This is important because, in effect, they either limit traders' earnings levels or prevent trading altogether. Today we will start with an excerpt from an interview I gave on this topic.
ZONA - STATE OF MIND DEPENDS ON WHAT YOU BELIEVE IN
Does the "zona" of traders have anything in common with the "zona" of athletes?
The pioneer of the study of the "zona" is Mark Douglas, for many his book "Trading in the Zone" was a breakthrough. Since then, the analogy with "zona", the state of mind of top athletes, began to function among traders. The state in which they achieve their best results. For many years, the influence of the psyche on sports performance has been known and increasingly researched, and many books have been written. Not surprisingly, most disciplines that require results have begun to take an interest in the impact of the psyche. This is what happened in trading, and the pioneer is the aforementioned Mark Douglas.
We tried to transfer the discoveries about "zona" to the field of work with traders. It soon came out that the matter is not so simple. At first, there was not any special sense in the various "mental events" during trading. The breakthrough came when considering belief levels (beliefs). We noticed, studying them, that the content of the levels is different for the best traders than for the others. And also that they are in harmony. This was a breakthrough in understanding not only the "zona" phenomenon but also the hidden factors of success in trading and how the best ones differ from others.
An example would be useful, because this is an interesting topic.
Trader 1 has a problem with the level of his earnings. As a child he recognized as his own, the belief that money has to be worked hard for. And now earning money in the market comes to him without much difficulty. This situation causes discomfort in him, which is eventually reflected in his reluctance to trade and reduced profits.
Trader 2 has a different problem, profits make him feel nasty. We are led to the clue as to what the reason is by his remark that when he earns he feels mean and losses bring him relief.
Impossible!
And yet [laughs]. Such is life!
More than once the results of the study puzzled us. I remember how much time we spent to find the cause. It turned out that the "culprit" was his conviction brought from a home where religion played an important role. He strongly took to heart the belief that in order to earn decently one should do something useful. This was coupled with the belief that "unethical" earning in the market (and he subconsciously considered trading to be such) was a sin and God would hold it against him. This is where the bad feeling he had at profits (it turned out to be guilt) and the relief he felt at losses came from. He was losing, and so he was no longer following the path of dishonesty and sin.
Let's stop at this point, because this is interesting. Are you saying that the cause of his market problems was faith?
Yes, exactly some elements of it. He received a Catholic upbringing and this most likely acted so strongly.
I'll admit that listening to you I myself am starting to feel uncomfortable. Are you saying that faith is a bad thing?
No, I didn't say that at all. I show the mechanism that worked. I didn't tell him what was right or wrong, I simply showed the mechanism. The rest of our conversation was dominated by the topic of whether making money in the markets is ethical or not. I showed various aspects, but after a while I felt I was not very knowledgeable on the subject. I arranged for him to consult with a colleague who is a theologian by profession, in addition to being a Catholic theologian - himself a Protestant. All I remember is that we discussed quite a lot about the differences between Protestant and Catholic theology in terms of earning and getting rich, because the two approach the matter diametrically opposed. But this discussion, while interesting probably runs far beyond the scope of our interview.
I will disagree with you. Ethical issues are very important, who knows if not the most important.
Look at what kind of reaction you have created. Steaming from the sidelines of our discussion, someone would say that you are precisely an example of how ethics issues affect market performance. You come to the market with certain beliefs brought from home. A while ago I showed how certain beliefs affect your earning potential. You, with your emotional reaction now, have confirmed that this is indeed the case. You have shown that ethical issues are most important to you. Now look at how it works. If you perceive something in the market as unethical - you will avoid it. Let's follow this logical process further. If you will perceive, for example, trading, as speculation and profits, as unworthy enrichment, this will impinge on your mental state. Just like in the person I described. This is exactly the same mechanism. Decent people feel bad doing things they consider "bad". Be aware that you will bring this issue with you to the market and it will shape your attitude towards your gains and losses. My job is to show you this mechanism, and what you do with it and how - that's up to you. I can help you free yourself from its influence. And I want to be well understood. I don't say what is good what is bad, I only show what and how it works. The best have their beliefs in harmony. They don't have internal conflicts against this background - you just saw how such conflict works in practice. Emotions arise, feeling one way or another - depending on what beliefs you have about, God, life, money, honesty, etc. Some traders resolve this issue by donating some of the money they make in the market to social and charitable activities. Others don't have a problem with this at all, or are of a different religion or are atheists. Today, when analyzing the beliefs of the best, we do it on six levels. And all of them should be in harmony, otherwise sooner or later something bad may start to happen, bad moods, underperformance, losses, crisis will start to appear. For us, it is important to identify and get to know these states quite early, so that they do not interfere with trading and life.
Beliefs can get in the way of results and success
We started from the fact that our goal is to bring you to the level of the best in addition to the state when you have mental comfort and enjoy life. These issues get in the way of that goal hence they were on our target. Often working with a person sometimes requires several months of meetings. Just a lot has to come out and you have to solve these issues one by one. But still it is a pure gain, because in the case of development without support, the process can take many years and fail at all. To summarize: the "zona" - the state of mind of the best, in which they have peak capabilities has several levels "underwater". We can compare it to an iceberg, in which consciousness is 1/10 protruding above the surface and the rest are hidden levels of beliefs. If strange things happen to a trader, this is the first area I look at.
Let's recap Trader 2
The person I told the story about was firmly convinced that what he was doing was wrong and in danger of punishment according to the religious principles instilled in him in his youth. As a result, the trader, while he was making money, felt very bad psychologically (feelings of guilt appeared) and when he lost came peace. There was a mechanism at work here that has its origins in his childhood, specifically in the religious upbringing he received and in the fact that he considered playing currencies as something unethical ("sinful").
Views of different theologies on wealth differ - they form the basis of different traders' beliefs.
This trader was raised in a Catholic family. Earlier I mentioned that I discussed the issue of wealth and earning with a Protestant theologian. He said that in Protestantism earning is OK, as long as it doesn't harm anyone. It is even desirable. A second, separate issue is the question of what one does with this wealth. There is no emphasis on this question while some guidance is to serve others in various forms - either by supporting religious activities (prominent trader Joe Ross is a sponsor of missions in South America) or by supporting initiatives for the good of society at large (supporting schools, hospitals, orphanages, universities, funding scholarships).
Give it a boost 🚀 and drop a comment so we know to publish more for you. Chect the footer. Cheers!
More & Follow: https://www.tradingview.com/u/drSwierk/
HOW TO DEAL WITH INTERNAL CONFLICTS THAT BLOCK SUCCESS AND TAKE MONEY AWAY FROM TRADERS?
For professional traders, a key element in their success is their state of mind, the so-called "zona" first described by Mark Douglas in his book "Trading in the Zone." It took quite a while to understand two key things - where it comes from and what hinders it. It turns out that the answer to the first question is almost simple. For the second, on the other hand, it is very complicated, as complex as the human psyche is complex. Fortunately, after much research, study of the topic and consultation, we found a good explanation of the subject and some tools that are useful in the process of transformation.
When I say transformation, I mean the process of changes in the psyche, the goal of which is to make the operation of one's own psyche similar to the way it functions in the best traders. This is not a trivial thing as we'll see in a moment, but these things need to be sorted out because they can significantly affect your well-being and performance.
We will start first by answering the above two questions to move on to describe the main problems that are caused by internal conflicts. This is important because, in effect, they either limit traders' earnings levels or prevent trading altogether. Today we will start with an excerpt from an interview I gave on this topic.
ZONA - STATE OF MIND DEPENDS ON WHAT YOU BELIEVE IN
Does the "zona" of traders have anything in common with the "zona" of athletes?
The pioneer of the study of the "zona" is Mark Douglas, for many his book "Trading in the Zone" was a breakthrough. Since then, the analogy with "zona", the state of mind of top athletes, began to function among traders. The state in which they achieve their best results. For many years, the influence of the psyche on sports performance has been known and increasingly researched, and many books have been written. Not surprisingly, most disciplines that require results have begun to take an interest in the impact of the psyche. This is what happened in trading, and the pioneer is the aforementioned Mark Douglas.
We tried to transfer the discoveries about "zona" to the field of work with traders. It soon came out that the matter is not so simple. At first, there was not any special sense in the various "mental events" during trading. The breakthrough came when considering belief levels (beliefs). We noticed, studying them, that the content of the levels is different for the best traders than for the others. And also that they are in harmony. This was a breakthrough in understanding not only the "zona" phenomenon but also the hidden factors of success in trading and how the best ones differ from others.
An example would be useful, because this is an interesting topic.
Trader 1 has a problem with the level of his earnings. As a child he recognized as his own, the belief that money has to be worked hard for. And now earning money in the market comes to him without much difficulty. This situation causes discomfort in him, which is eventually reflected in his reluctance to trade and reduced profits.
Trader 2 has a different problem, profits make him feel nasty. We are led to the clue as to what the reason is by his remark that when he earns he feels mean and losses bring him relief.
Impossible!
And yet [laughs]. Such is life!
More than once the results of the study puzzled us. I remember how much time we spent to find the cause. It turned out that the "culprit" was his conviction brought from a home where religion played an important role. He strongly took to heart the belief that in order to earn decently one should do something useful. This was coupled with the belief that "unethical" earning in the market (and he subconsciously considered trading to be such) was a sin and God would hold it against him. This is where the bad feeling he had at profits (it turned out to be guilt) and the relief he felt at losses came from. He was losing, and so he was no longer following the path of dishonesty and sin.
Let's stop at this point, because this is interesting. Are you saying that the cause of his market problems was faith?
Yes, exactly some elements of it. He received a Catholic upbringing and this most likely acted so strongly.
I'll admit that listening to you I myself am starting to feel uncomfortable. Are you saying that faith is a bad thing?
No, I didn't say that at all. I show the mechanism that worked. I didn't tell him what was right or wrong, I simply showed the mechanism. The rest of our conversation was dominated by the topic of whether making money in the markets is ethical or not. I showed various aspects, but after a while I felt I was not very knowledgeable on the subject. I arranged for him to consult with a colleague who is a theologian by profession, in addition to being a Catholic theologian - himself a Protestant. All I remember is that we discussed quite a lot about the differences between Protestant and Catholic theology in terms of earning and getting rich, because the two approach the matter diametrically opposed. But this discussion, while interesting probably runs far beyond the scope of our interview.
I will disagree with you. Ethical issues are very important, who knows if not the most important.
Look at what kind of reaction you have created. Steaming from the sidelines of our discussion, someone would say that you are precisely an example of how ethics issues affect market performance. You come to the market with certain beliefs brought from home. A while ago I showed how certain beliefs affect your earning potential. You, with your emotional reaction now, have confirmed that this is indeed the case. You have shown that ethical issues are most important to you. Now look at how it works. If you perceive something in the market as unethical - you will avoid it. Let's follow this logical process further. If you will perceive, for example, trading, as speculation and profits, as unworthy enrichment, this will impinge on your mental state. Just like in the person I described. This is exactly the same mechanism. Decent people feel bad doing things they consider "bad". Be aware that you will bring this issue with you to the market and it will shape your attitude towards your gains and losses. My job is to show you this mechanism, and what you do with it and how - that's up to you. I can help you free yourself from its influence. And I want to be well understood. I don't say what is good what is bad, I only show what and how it works. The best have their beliefs in harmony. They don't have internal conflicts against this background - you just saw how such conflict works in practice. Emotions arise, feeling one way or another - depending on what beliefs you have about, God, life, money, honesty, etc. Some traders resolve this issue by donating some of the money they make in the market to social and charitable activities. Others don't have a problem with this at all, or are of a different religion or are atheists. Today, when analyzing the beliefs of the best, we do it on six levels. And all of them should be in harmony, otherwise sooner or later something bad may start to happen, bad moods, underperformance, losses, crisis will start to appear. For us, it is important to identify and get to know these states quite early, so that they do not interfere with trading and life.
Beliefs can get in the way of results and success
We started from the fact that our goal is to bring you to the level of the best in addition to the state when you have mental comfort and enjoy life. These issues get in the way of that goal hence they were on our target. Often working with a person sometimes requires several months of meetings. Just a lot has to come out and you have to solve these issues one by one. But still it is a pure gain, because in the case of development without support, the process can take many years and fail at all. To summarize: the "zona" - the state of mind of the best, in which they have peak capabilities has several levels "underwater". We can compare it to an iceberg, in which consciousness is 1/10 protruding above the surface and the rest are hidden levels of beliefs. If strange things happen to a trader, this is the first area I look at.
Let's recap Trader 2
The person I told the story about was firmly convinced that what he was doing was wrong and in danger of punishment according to the religious principles instilled in him in his youth. As a result, the trader, while he was making money, felt very bad psychologically (feelings of guilt appeared) and when he lost came peace. There was a mechanism at work here that has its origins in his childhood, specifically in the religious upbringing he received and in the fact that he considered playing currencies as something unethical ("sinful").
Views of different theologies on wealth differ - they form the basis of different traders' beliefs.
This trader was raised in a Catholic family. Earlier I mentioned that I discussed the issue of wealth and earning with a Protestant theologian. He said that in Protestantism earning is OK, as long as it doesn't harm anyone. It is even desirable. A second, separate issue is the question of what one does with this wealth. There is no emphasis on this question while some guidance is to serve others in various forms - either by supporting religious activities (prominent trader Joe Ross is a sponsor of missions in South America) or by supporting initiatives for the good of society at large (supporting schools, hospitals, orphanages, universities, funding scholarships).
Give it a boost 🚀 and drop a comment so we know to publish more for you. Chect the footer. Cheers!
More & Follow: https://www.tradingview.com/u/drSwierk/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.