The Journey of Self-Development


31 ratings



Rande Howell

20 Jul, 2012

in Psychology

The Mindset That You Brought into Trading is NOT the Mindset That Will Bring Success in Trading

The Journey Begins – Stumbling Out of the Starting Gates
Traders begin the journey into trading with high hopes.  They believe, with good training and enough screen time, they will be able to master trading and achieve their dreams through trading.  They practice diligently in simulation, back-test their methodology, and/or use a trading organization’s “near money” until they clearly see that they can win at this game with their own money.  Confident from their past experience of hard work and ambition having paid off in the past, they assume this ethic will lead them to success in trading also.  Methodically, they have trained themselves to achieve their dreams.

Then they start trading live.  Anyone who has been around trading for a while knows the war stories.  The stories of blown-up accounts and the slow bleed of a thousand small cuts litter the landscape of the journey into trading. After the losses, fear takes up residence in the trader’s mind and self-doubt becomes the invisible partner riding herd over the trader’s mind.  Even when they have a winning streak, they end up getting over-confident and giving back all their profits – and more.  Somewhere the trader’s mind gets hijacked by fear or euphoria and an efficient trading mind is no longer in charge of the methodology that (on paper) gave them the edge to be profitable.

The Journey Hits a Critical Moment – Taking Stock of Yourself
By this time in a trader’s journey, they have chased the Holy Grail through different methodologies, the latest trading guru, the next “can’t miss” indicator, new platforms, and mechanical trading systems that take the emotion out of trading.  But they still can’t break through to the next level.  By the process of elimination, some begin to realize that they are looking in all the wrong places for the missing ingredient to their success; the Holy Grail is not to be found “out there” in new systems or methodologies. 

Rather, the Holy Grail is really a set of inherent, in-dwelling resources within the self.  The rub is that traders have to find, excavate, and develop these elements of their potential.  And that is uncomfortable to do on an emotional level, especially for someone who has avoided the heavy "emotional lifting" required to change beliefs about one’s capacity to manage the uncertainty of probability.  Many traders stay stuck at this point in the evolution of themselves as a trader, either because they do not want to hold themselves responsible for their trading results or because they do not know how to change.

Unless you were lucky enough to win the genetics lottery for trading pre-disposition, there is really no choice but to re-develop the mind for trading.  The first big AHA! moment for the emerging trader is recognizing that the problem with his trading is him (or her) – and that alone.  Both emotionally and psychologically, this is a difficult task.  Redeveloping the self that trades - forces the trader to confront parts of himself that he or she has very successfully avoided for decades.  The very psychological dragons that the trader has pushed out of working awareness in other domains of his life now stalk him as he trades. 

The developing trader has to look into the mirror of the self and take stock.  This is where he really needs to decide if his passion for trading has the emotional motivation to see him through confronting his fears and redeveloping his beliefs about his capacity to truly manage uncertainty.  Unlike other areas of his life where there is so much "fuzzy grey" area about declaring "success", the condition of success in trading is black and white – it is your trading account.

If the beliefs you have about your capacity to manage uncertainty in trading are effective, the results will be reflected positively in your trading account.  The reverse is also true.  If the beliefs you bring to the management of uncertainty in trading are not effective, they will produce trading performances that show a capital drain on your trading account.

The Courage to Build Your Mind for Success in Trading
At this point the trader comes to understand that the mindset that he brought into trading is not the mindset that is going to produces success in trading.  And if he is going to be successful in trading, his is going to have to commit to self-development.  Self-development implies that the trader is going to have to build a mind for trading.  There is no reason to feel embarrassed. Just about everyone comes to this moment in their journey into trading.  It’s called paying your dues and waking up.

Generally, at this point a trader has been developing his technical side for three to five years; and he has read more than a few trader psychology books.  At some point he realizes that he, and he alone, is the problem that keeps sabotaging his potential.  So he decides to commit himself to self-development in the same way that he developed other skills for trading.  He has been "in his own way", but he is finally ready to change.

This is a critical moment.  Many people leave trading before they arrive at this intersection because they are unwilling to change.  However, if the trader truly has a passion for trading, he also has the motivation to change.

Change Into What?
Many traders have attempted to change with no long-term gain.  The battlefield of self-development is littered with programs that promise change.  Many programs deliver a sense of energy (called a seminar high).  When you leave these programs, people literally feel as though they could conquer the world.  They leave the training in a state of high energy, they are goal oriented, and they are razor-focused on success.  And after walking over burning coals or another seemly impossible mind-over-matter obstacle, they are certain that nothing can stop them.  They feel on top of the world.  They have the affirmations, the success visualizations, they have learned some NLP, they have done some hypnotic guided meditations that released their higher self, and they have become the spiritual warrior of success. 

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interesting article that does mention that the "Enemy is us" .........

The Best leaders in business, Trading. Warfare ...anything...... have a "multiple mindset" going on internal debate with multiple questions , options , solutions being analysed, Practiced and rehearsed and refined and ready to bring to the game if needed............this is a very very hard place to get to so only few are successful

Calm on the surface and inferno of activity underneath......

I also enjoyed the part about success generating over-confidence and how it is an unwelcome divergence from the perfect long term business model for wealth and success..........but again you have to LIVE these things to learn from them.....

as Oscar Wilde said..............."the only things worth learning in life are not learnt from Books"


You can only learn about you as a trader by experience of trial and error on live accounts , that is learning how to trade successfully under pressure stress , emotions and the enemy within us , no one else can teach you about becoming a successful trader.A mentor can guide you through this process.

Jul 16, 2017

Member (3620 posts)

Great article. The market will teach you everything you need to know about yourself, if you are brave enough to endure its learnings.

Apr 17, 2017

Member (2 posts)

Re: The Journey of Self-Development

Good article

Apr 16, 2017

Member (3620 posts)