The Power of Acknowledging Unacceptable Trading Ideas
Many people believe that the best way to cope with unacceptable ideas is to pretend that they are irrelevant and just don’t matter. However, this approach uses up precious psychological resources, making it challenging to focus on trading.
Trading is a difficult and demanding activity that requires every bit of psychological energy. Denying thoughts and ideas about trading that are hard to accept can interfere with your ability to maintain concentration and look at the market objectively.
Acknowledge Your Unacceptable Ideas
The first step in overcoming the limitations of your trading mindset is to acknowledge your unacceptable ideas. This may involve admitting your limitations, accepting the possibility of failure, and recognizing the need for continuous learning.
For instance, a novice trader may believe that they are not skilled enough to trade successfully. Instead of denying this idea, they should acknowledge it and focus on developing their skills.
Examples of Unacceptable Trading Ideas
Some common unacceptable trading ideas include:
- ‘Maybe I’m not a very skilled trader. Perhaps, I’ve just had a run of good luck.’
- ‘I can prepare for hours, but I may still fail.’
- ‘Perhaps I was a good trader at one time, but the market conditions have changed and I may not be able to keep my reputation up.’
- ‘Trading is not a legitimate job.’
These ideas may be uncomfortable to acknowledge, but denying them can use up valuable psychological resources. By acknowledging these ideas, you can free up your energy to focus on developing your skills and achieving your trading goals.
The Benefits of Acknowledging Unacceptable Trading Ideas
Acknowledging unacceptable trading ideas can have several benefits, including:
- Reduced stress and anxiety: By acknowledging your unacceptable ideas, you can reduce your stress and anxiety levels and focus on trading more effectively.
- Improved self-awareness: Acknowledging your unacceptable ideas can help you develop a greater understanding of your strengths and weaknesses, allowing you to make more informed trading decisions.
- Increased discipline: By acknowledging your unacceptable ideas, you can develop the discipline needed to stick to your trading plan and avoid impulsive decisions.
Conclusion
Acknowledging unacceptable trading ideas is a critical step in mastering your trading mindset. By acknowledging your limitations, accepting the possibility of failure, and recognizing the need for continuous learning, you can free up your energy to focus on developing your skills and achieving your trading goals. Remember, acknowledging your unacceptable ideas is not a sign of weakness, but rather a sign of strength and a willingness to learn and improve.
