The Number One Requirement

In the early days of the self-help movement, Norman Vincent Peale made headlines with his thrust of PMA – positive mental attitude.He took Sigmund Freud’s early personality development theories, added some thoughts from Victor Frankl’s Search For Meaning and threw in his own projections of good mental visions to preach to the world about PMA.

How does PMA apply to trading? It applies just as much and in the same way that it applies to life and to human beings. But here, I’ll mention only one. But it’s the one that I would argue is the EL PRIMO, the Number One requirement of successful trading — personal self-confidence.

Not to be confused with narcissistic, self-ego, the self-confidence in a trader means that he trusts himself.

Yes, of course, there is much to learn, in the world of trading, that is technical, informational and logical. There are thousands of ways to trade, indicators, trading systems, platforms, strategies, etc., etc.

But I would argue that there is ONE trading system that fits who we are.

Our challenge is to find that ONE trading system and to work it in a MASSIVE, FOCUSED, CONSISTENT EFFORT FOR AS LONG AS IT TAKES TO FULLY MASTER IT.

Many of we students of trading have the willingness to do that.

But here’s the catch: In order to find the trading system that fits me, to adopt the markets and strategies that fit my personality, to develop a trading style that fits my psyche, I must first KNOW WHO I AM!

For example, for me to trust any person, that person must show me that he’s WORTHY of my trust. This doesn’t happen overnight. And although it’s slow to be built up, it can easily and quickly be torn down to almost unrecoverable levels! So I must, over time, get to know that person before I entrust anything to him.

Likewise, trusting myself is a bank account system, where small deposits must be made often, but a small incident can cause a huge withdrawal.

Therefore, after I learn WHO I AM, I can, hopefully, learn to TRUST ME.

When I trust myself in a trade, it shows when, for example, I’m in the ‘heat of battle.’ I’m in a trading situation where I must make a quick decision. Should I get out of this trade? Should I put more money into it? Should I give it more time? How can I adjust it to make it turn my way?

It’s at these times that the ‘voices’ within are at battle. They’re very LOUD voices and they start YELLING at each other.

But, all the while, there’s a very soft, gentle nudging quiet voice that emulates from my heart.

If I can silence the other voices and learn to listen to this quiet one and to trust it completely, then I have a chance of making it to the level of professional trading.

Yes, positive mental attitude IS necessary for success. It’s great to hear it from others and to ‘hear’ from our brain. But it works best when it issues from our heart and is our guiding light.