Changing Your Negative Trading Beliefs by Ruth Roosevelt
Negative thinking gives you negative results and that holds true for your trading beliefs. Ruth Roosevelt, director of the Wall Street Hypnosis Center, explains how to take your negative and limiting trading beliefs and convert them to positive and profitable ones.
If you find yourself repeatedly doing something that is negatively affecting your trading results, ask
yourself: "What is it that I believe that is causing me to limit my trading profits like this?" Behind
limiting behavior is limiting belief. Your beliefs affect your behavior and your perceptions and in turn
have a profound impact upon your trading.
For example, suppose you're constantly taking your profits before the market tells you it's time to do so.
You're ending up with small or medium-sized profits while you watch the market surge upward without
you. You're missing the big trades that you need to make your methodology pay off. Ask yourself, "What
is it that I believe that is causing me to grab my profits prematurely?"
Each trader is different. Some rationalize such behavior by thinking that you can't go broke taking a
profit. But of course you can. In reality, you need the big profits to cover the small losses. A committed
trader needs to determine what underlying belief is causing this action. For each trader the thought
process is different—I have to be right; I can't trust my system; I can't trust myself; if I lose this trade, I'll
lose my self esteem; I can't afford to let this profit turn into a loss; if I lose this particular trade, I'll lose all
my wealth; it's important that every single trade be a winner; or I'll feel bad if I don't book this profit.