Beliefs About Trading
K. Tharp, Ph.D.
You do not trade the marketsóno one does. Now
that might sound surprising to many of you.
But what you really trade are your beliefs about the market.
Furthermore, your ability to do so is tempered by your
beliefs about yourself.
you to write down your beliefs about yourself.
These beliefs will typically start with words like
experience myself as
Now if this sort of exercise
is new to you, when you first do it, youíll probably write down a
bunch of your positive attributes.
Furthermore, youíll probably have trouble writing down more
than twenty or thirty such beliefs.
But you probably have hundreds.
However start your list.
Letís say you think for about five minutes and you come up
with the following items:
am a fairly good trader.
feel positive about my potential.
am fairly astute in thinking about the markets.
You know there are a lot
more, but after 15-20 minutes of thought thatís all you can come
up with. Okay, thatís
a start. But now Iíd
like you to continue the exercise each time you make a trade, either
opening the position or closing it.
Letís say itís Monday
morning and you open positions in the market.
After doing so you continue to assess yourself and you notice
feeling really excited.
like fast moving stocks.
Okay youíve gained some
insight about yourself.
By mid afternoon the market
is in a steep decline and three of your stocks are down $500 on the day.
Now you start thinking to yourself:
feel angry about that position.
I just got in and itís going against me.
not going to let them take advantage of me this time.
Iíll hang on until it comes back.
Notice that youíve just
gathered some more insights about yourself.
Keep this up until youíve written down 100 or more
statements that reflect you and your feelings.
When you do, youíll have a lot more insight about how you
produce your trading results. And
you will be starting on your way to becoming a peak performance
About the Author: Trading
Coach Dr. Van K. Tharp, is widely recognized for his best-selling
book Trade Your Way to Financial Freedom and his classic Peak
Performance Home Study Program for traders and investors. Visit
him at www.iitm.com for a FREE
trading game or to sign up for his free weekly newsletter.