You can find the Psychology and Money Management forum, which George moderates, here:
The forum also has many comments from fellow traders, so check them out below.
Part 1 on BMT
Part 2 on BMT
Part 3 on BMT
Part 4 on BMT
And now, without further delay, here is the final installment:
Trading Psychology and How The Mind Works (IV)
Remember that talk about the Holy Grail and where it is?
You got it, it is right there, on the inside. Stop looking for it outside. The only thing is that, we have to uncover it first.
Have you ever wondered why, affirmations, confirmations, positive self talk, positive visualization, you name it, never works? The market is full of all these techniques. Learn how to be positive, learn how to have discipline, learn how to be successful etc.etc.
It’s not working because of the program in our subconscious mind. If the program is negative, it doesn’t matter how hard you try to change it with your conscious mind. It won’t be persistent. Remember what you had in your conscious mind, the “will power”?
And remember that it was temporary? Now you understand why it doesn’t work. In order to change a habit one has to be persistent for a period of at least 14 days. The only problem is that it’s very difficult to follow a new habit, during such a long period because you’re using your will power in that case. Plus that you’re going against yourself constantly. You’re forcing yourself to go against your program that’s running between 95-99% of your daily life with a conscious will power that’s temporary. Isn’t life ironic?
But nevertheless, when you do understand this, you’ve gained a huge awareness. For the first time you’ll be able to look at yourself from the outside. You’ve gained self distance. You start to understand why and how things work. That gives you a tremendous advantage. And that is in case you want to change of course! If you’re content with your new findings, and you want to continue as a slave of your own program
and habits, then go on and live life as you did before. But if you want to make a change, then you have to get to the core.
In the last article I gave an example that explained how fear of success works. Normally it works like this.
An event that causes an emotion takes place, for i.e. whatever causes you to have that fear, or whatever causes you to engage the protective role of your subconscious mind. Simultaneously two more things occur. The energy in that event is stored in your body and an association is created in your brain. All this takes place in order to reward one thing, survival. Since that event took place, and during every second of your life from back then till your present moment. You’ve had that process (and all other processes, since their commencement) running constantly in the background.
In order to get rid of fear of success (or whatever change you need to make) you have to neutralize that stored energy. How in the whole world, will that be possible?
Time travel? Sorry guys, trying to be funny. Not working, right?
There are actually three ways that are working, and that I know of because I’ve been all over the place searching. You know, the usual stuff, standing in front of the mirror, talking to myself “you are the world’s greatest trader; you can do this, bla, bla, bla…) Watching movies, like “The Secret”, and feeling that it’s speaking to me directly (by the way, great movie, I liked it, the only problem is that it’s only giving you half of the equation). Affirmations, visualization you name it. It’s not my point to criticize those techniques, it’s just that it makes me mad, because they’re hiding the other part of the reality. It’s not possible to overlap a bad program. You have to get rid of the program first.
So here are the three techniques that work. All three helps you to get rid of the bad program in order to be able to put there whatever you wish, in order to give you emotional freedom. I’ll explain shortly how they work and why they work.
1.EFT (Emotional Freedom Technique, EFT Home - World Center for EFT (Emotional Freedom Techniques))
Emotional Freedom Techniques (EFT) is an emotional, needle free version of acupuncture that is based on new discoveries regarding the connection between your body's subtle energies, your emotions, and your health. EFT has been reported successful in thousands of cases covering a huge range of emotional, health and performance issues.
It’s actually pretty easy to learn and to perform. It’s about putting your focus on an issue that’s bothering you and while you do that tap on different spots on your face, upper body, arms and fingers. If you want details, you’ll find them on their page, specifically how and why it works. It’s a great technique, if you can nail the issue. In other words, if you’re very aware of the event, that caused you problem, or if you are persistent, you’ll get great results. If the issue is more bothersome and hidden (my own experience tells me that, it’s better to seek a practitioner or to use the next method). But remember that’s my opinion, if you find the technique to be working for you and it fits you, it can do wonderful things for you.
2.Hypnosis (I’ve studied hypnosis for this guy –a home study course-, and he’s a living legend, -Gerald Kein
Omni Hypnosis Training - Onsite or Distance Learning Clinical Hypnotism Training)
Usually, people are very judgmental about hypnosis, and their association’s runs directly to those stage hypnosis shows, or to mind control. Forget all of that.
So basically, hypnosis consists of two main parts, the induction and the hypnotic therapy session. During the induction, the subject is asked to relax. It’s being constantly talked to by the hypnotist and led into a state of focused relaxation. The induction serves in order to send away the conscious mind (the analytical and the rational mind), in order to get access to the subconscious mind, where everything is stored and still active. When you get there, then you’re able to relive the event. By doing that you’re able to process it and to release it.
By reading my own words, I’m getting the impression of this might be a difficult process to grasp and to understand. If you by any chance are trying to understand this method, it means that you have second thoughts about it and you’ll be taking it to a very analytical and rational level. It simply won’t work then!
My recommendations are; if you’ve come to an edge in your life, and you’ve become aware of that impulse running in the background and sabotaging you on a constant basis, AND you’re willing to get to the edge and jump no matter what. Then hypnosis will work for you!
Hypnosis can clear things in a couple of sessions (2-4, each being about 1,5h) that has bothered people for an entire life. It takes 4 sessions to free someone from alcoholism, (you get the picture? it takes away the reason for it being practised, AA teaches people the discipline to keep themselves away from it instead. Unfortunately people are sceptical about it and spend rather 20 years in classical psychotherapy instead of freeing themselves in a couple of sessions.
Remember, hypnosis is very, very powerful if you allow yourself to take that step. If you by any chance decide to try it out, please use that link, in order to link yourself to someone recommended by Gerald Kein. Maybe you can call them and ask them for someone certified by them in your area.
There are a lot of bad hypnotherapists out there, so be sure to end up with a good one.
3.The Sedona Method (This is my favorite one, and I’m in the middle of learning it right now
Sedona Method (official site) The Secret self-help program; self-improvement technique)
It’s a wonderful tool. It’s about letting go of things. It’s about releasing issues. It’s about becoming free. Basically, it’s a very, very simple technique that teaches you how to connect yourself to your feelings and how to free yourself from them. Remember the subconscious mind is the feeling mind. So you’re right on the spot again here, because it’s about reprogramming and uncovering. The beauty of the Sedona Method is that, is very portable. You can put it in your mind, by learning it, and you can use it whenever you need. You don’t have to tap on spots, you don’t need a hypnotherapist, and you can just bring it up in any situation needed. Plus that you can benefit a lot from it in trading as well, by releasing all those negative emotions that you end up with from bad trades.
Basically all of them are very powerful tools. EFT, can very easily neutralize all those bad trades, you have behind you, by tapping on those spots. Hypnosis can free you from all the junk, which prevents you from having the right perception and perspective while you’re trading. And the Sedona Method can help you
get rid of the stress that’s out there while you’re trading.
Some people collect stamps, some like to jog, and so on. Me myself, have been obsessed by these two words, “why” and “how”. Since I got tired of losing and blowing up my portfolios, and since that old friend of mine inflated his ego on my behalf. By the way, let us all send him a big Thank You! If it wasn’t for him and him initiating me into this business, I guess we wouldn’t have met.
By asking those two questions, why things work the way they work, and how do things work; I’ve come to gain all this knowledge that I’m sharing with you! As you see, it has not so much to do with trading. In fact trading has not that much to do with anything. Trading is just trading, nothing else. It has all to do with you, and the way you look at trading. In order to be able to look at trading, you have to get rid of all the filters that are holding you back from looking at trading the way you should be looking at it. I’ve gained all this by asking why and how. What I’ve come to understand to this point is that ironically enough I have to learn how to let go of all this and get past all the rational and analytical stuff because that’s where we’ll be finding our own Holy Grail.
I’ve been through them all. I mean the methods and I’ve been wondering on those paths that took me here. What I’ve written and shared with you has been my reflections coloured by my own journeys. Remember that every journey is unique, and has to be performed by the persons involved in them. Take my words, and this knowledge shared as guidance, and go out there and make your own journey and find out what works for you!
Good luck and have a lot of fun, life’s supposed to be fun to live!