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Trading in the zone

Mechanical Stage

The mechanical stage is conceived to build trading skills (trust, confidence, and thinking) in probabilities that shall virtually compel you to create consistent results.  


Eliminating errors and expanding your sense of self-valuation will necessitate the acquisition of skills that are psychological in nature. These skills are psychological because each of them in their finest forms is simply beliefs. How genuine a belief is can be determined by how well it serves us; the intensity to which it helps us to satisfy our objectives. If producing consistent results is your primary objective as a trader, then creating a belief (a conscious energized concept that resists change and demands expression) that “I am a consistently successful trader” will act as a significant source of energy that will manage your perceptions, expectations, and actions in methods that satisfy the belief and consequently, the objective.  


Culminating a dominating belief requires adherence to several principles of consistent success. A handful of these principles will likely be in direct conflict with some of the beliefs you have already acquired about trading. This is a textbook example of beliefs that are in direct conflict with desire.  


To conquer this conflict and transform yourself into a consistent winner you must first & foremost be willing to change, have clarity of intent, as well as a strong desire. You must, at every turn, choose consistency over and above every other reason or justification you have for trading.  


The initial step in creating consistent results is to begin observing what you are thinking, saying, and doing. These actions reinforce and instigate some belief in your mental system. You must start paying attention to your diverse psychological processes.  


The concept is to become a keen observer of your thoughts, words and deeds. The first line of defense in avoiding a trading error is to catch yourself anxiously thinking about it. The last line of defense is to catch yourself in the act of making an error. If you do not commit yourself to becoming an observer then your realizations shall always be subsequent to the experience, usually when you are in a state of frustration and regret.  


Observing yourself objectively implies doing so without the slightest judgment or criticism. Majority of us, to avoid emotional pain, typically avoid acknowledging our mistakes. However, not acknowledging our mistakes in everyday life usually does not have the same devastating consequences it can have as not confronting our mistakes as traders. If producing consistent results is a function of eliminating errors then it is an understatement to exclaim that you will encounter extreme difficulty in achieving your desires if you can’t acknowledge a mistake. 


If our beliefs are not consistent with what works from the environment’s perspective, the scope for making mistakes is very high. We shall face difficulty perceiving the appropriate steps to reaching our objective. Even worse, we might not be able to perceive that what we want may not be available, or available in the quantity or time we desire.  


On the contrary, mistakes that are the result of beliefs that are in conflict with our objectives are not always apparent or purported. We do know that they will act as opposing forces, expressing their readings of the truth on our consciousness. The most daunting to detect is a distracting thought that causes a lapse in focus. Depending on your money management skills and the risk in your open positions, this lapse can be disastrous.


Mistakes soberly point the way to where you need to focus your efforts to grow and improve your trading. Mistakes should not exist in any kind of negatively heeded context as they are held by most people.  


When you notice that you are not engrossed in your objective, choose to redirect your thoughts, words and actions in a way that is consistent with what you want to accomplish. The more obstinately you engage in this process, and do so with conviction, the swifter you will create a mental framework that is free to function in a way that is consistent with your objectives.  


This process of frequently redirecting your thoughts, words, and actions as often as needed is the process of self-discipline. Self-discipline is a mental approach to redirect your focus of attention to the object of your goal or desire. This is an acquired skill and not a personality trait. One is not born with self-discipline. If there is anything in your mental environment that is in contrast with the principles of creating the belief that “I am a consistently successful trader” then you shall need to employ self-discipline to inculcate these principles as a dominant functioning part of your identity. Once the principles become internalized and become “who you are” you will no longer need self-discipline because the mechanism of becoming consistent will become effortless.  

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Units 17/19