One of the most admired qualities of successful traders and investors
is self-confidence. An abundance of it will bring results, and the
lack of it is guaranteed to kill your trading account. All successful
traders and investors agree it is one of the single most important
components of consistency and producing profitable results.
Success in any endeavour is 80% psychology and 20% action. This rule
is closely linked to and drives another 80:20 principle: 20% of the
things you do account for 80% of your results. But what leads you
to do the right 20%?
It is simply how you think. It is your attitude and frame of mind.
The quality of your actions is determined by the state of mind you
are in at any given moment.
A good way to think about this would be, every week like most traders
and investors, you probably think of several things that you need
to do in order to grow your account. Let’s say hypothetically it
was comprised of ten things to do this week. Of the ten actions,
eight of them would be either a waste of time, counter-productive
or produce insignificant results. Doing the right two actions would
get you 80% of the results you desired. This means if you did this
every week for the next 10 weeks, of the 100 possible actions, 80
of them will be a waste of time and 20 of them will get you 80% of
the results you desire.
Your state of mind will determine not only what you put on the list,
but even more importantly what you choose to do next. Your state of
mind will determine what you perceive to be urgent, important and a
waste of time. Your state of mind will determine what you focus on
and how you focus on it.
Learning to manage the state of your mind is one of the most important
techniques you need to master in order to succeed at trading and investing.
Why?
Because the state you are in will determine the quality of your decisions,
what you believe, what to feel and what to do next. What you do
will create the results of your business, and your results determine
your destiny.
So the bottom line is - state of mind is everything.
Whether you play golf or not, think about this. Why does virtually
every golfer complain that when they are practising on the golf
course they play their best golf, but as soon as they play against
someone or the pressure is on them, their game falls apart?
The reason being is the state they are in while playing determines
the quality of their performance and results.
Your ability to manage the state of your body and mind during
challenging times is one of the important techniques you must
learn in order to influence the quality of your trading and
investing results.
However, virtually no one knows how to turn confidence, (
or any other resourceful state) on at will. For most, it either
shows up on the day or it doesn’t! But there is a scientifically
proven way to feel whatever you want to feel, whenever you want.
If you could learn how to control the state of your mind so that
you could focus in on the right 20% of actions that produce 80%
of your results, how much time will that save you? How much more
money would you make? What else would you be able to do?
Regards,
Patrick Stockhausen, BA (Hons), MPNLP, BPNLP, DHE, NHR
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