Listen to how to model the beliefs of top traders. Welcome to lesson two. My name is Sam eater. I'm a global macro Currency Trader and the owner of effects renew calm. This is the advanced forex course for smart traders. Understand that learning the market can take years, immerse yourself in the world of trading and give up everything else.

Get as close to other successful traders as you can. Within each of us as a top trader waiting to be unleashed. The challenge is that they are buried under a weight of beliefs that have been built up over a lifetime. transcendence of these beliefs come in two steps, awareness and knowledge. The first step and awakening the trader within as awareness. You need to realize the beliefs you have that they are a product of your personal history, and perhaps there are better beliefs more suited to successful forex trading that you can choose to have.

Like Neo in the 1999 sci fi film The Matrix Everything changes once you realize that your beliefs are simply a construct a present within the mind. You can then rise above your beliefs and make your own rules of the game. As the boy said to Neo, there is no spoon. The second step and awakening the trader within comes with knowledge. And the matrix Neo had a guide Morpheus, played by Laurence Fishburne, Morpheus taught Neo a new set of beliefs that tore down as restraints. It took time for Neo to believe, but we needed he became free of limitation and was able to defy the laws of the world that have previously held him captive.

Here you are like Neo, the student. After lesson one, you know your existing beliefs you have awareness. In this lesson, you learn the new rules of the game, you gain the knowledge, it's time to take the red pill and like Neo journey down the rabbit hole and see how far into Wonderland you're willing to go. Let's start with the findings from a master's thesis and leadership. In 2009. I completed a master's thesis leadership.

The subject was top leaders and top traders an explanation into why they succeed. And the crux of the study was that top leaders and traders share common traits. In particular, they have a high degree of emotional intelligence and are engaged in self study, they're able to formulate a plan that was right for them or their organization, and to stick to it with rigid discipline and confidence. Furthermore, when facts changed, and the plan needs adjusting, they were able to recognize this and adapt. Before we move into specific beliefs, it's instructive to explore two key findings from this study. Emotional intelligence is more important than raw intelligence.

The perception can be that top traders a number whizzes, but that is far from the truth. While it is important to understand some basic myths, trading is ultimately a statistical game. The more important skill is emotional intelligence. From the study of emotional intelligence includes factors Such as self awareness, self discipline, empathy, and individual differences in processing and regulation of emotions. Basically, the better you are at controlling your emotions in the market, the more successful you will be. If you are here for the thrill of it, then you are unlikely to remain consistent over the long term.

Confidence breeds discipline. A second finding from the study is that you need to learn to trust yourself. You need to be confident in your approach to the markets. When you are confident and trust your forex trading system then you won't have any trouble remaining discipline and following your plan. Here's an excerpt from the study. This is Maddie Swartz market wizard and author of football lessons from Wall Street's champion day trader.

MADI Swartz was adamant that confidence is essential to a successful trader. When dealing with a losing streak. Swartz would trade a smaller size to make a little profit. It's all psychological. He said. I felt sick and I wanted to make myself feel good again.

I wanted to regain my confidence during the losing streak. fear of losing was slowing down his reaction time making him take more risk. he outlined what happens is that your fear of losing rises, your emotions start to short circuit your intellect and you no longer have confidence in what you're doing. Once he regained his equilibrium, he was able to get the profits flowing again. If you can regulate your emotions and remain confident or practicing the beliefs of top traders, you will be more than just a successful trader, you will have awakened the Forex trading giant within Jimmy Bella Damon said I knew I wanted it more than anyone else. There was no way I was not going to make it.

I always had that competitive drive whether it was getting into a top college or competing in college sports. The beliefs of top traders Listed below are the beliefs of top traders that we teach on this course. This is not meant to be a comprehensive list. Individually top traders will have plenty of beliefs that are not on this list. But from our studies we have noticed is that several of these beliefs are common across top trade. And some beliefs like taking responsibility are common to all traders.

More importantly perhaps, is if that you model the majority of these beliefs, you'll develop a powerful forex trading mindset that will last you a lifetime. You will become capable of enhanced and enlightened decision making when it comes to your forex trading. And it's like riding a bike. Once you learn these skills, you won't lose them. You may fall off the bike every once in a while but you will get back on you will be free from conventional wisdom forever. For some of you the beliefs below might seem unclear at first, for some of you they will be really apparent either way it is okay.

Belief one. Top traders believe they're responsible for the results. The cornerstone of an effective approach to trading is responsibility. By taking responsibility for your own profits and losses you gain control over your financial destiny. It is easy to look for others to blame bit your money manager stockbroker or even the market itself by accepting it is you Who is ultimately the determining factor for your success, you gain the ability to work on yourself and improve the way you trade. Belief to top traders believe in having in depth objectives to have clearly defined goals.

You should know the reason why you are trading. Perhaps you are looking for an early retirement on the beach would like to help a loved one live a better life. These powerful motivations keep you from straying off the beaten track and help you trade with discipline. Once you have uncovered your greatest purpose, you can then define goals such as return goals and a resco. Once you have these objectives, you can then develop a position sizing model to help you meet them. More on that later.

Belief three top traders believe that trading is a statistical game and understand positive expectancy. Good traders know that it is not the outcome of any one trade that matters. Rather, they seek to have a positive expectation of profits over a series of trades. It is important to develop an appreciation for basic statistics and probability successfully trade forex play for top traders believe in appropriately taking risks in order to achieve their goals. Acceptance of risk is a challenge for many traders, they would of course prefer that they could make money without ever having to lose any. But losses are effective life in the markets and accepting this as a positive thing.

It frees you to create a trading plan that leads you move towards your goals. Belief five top traders believe they should trade differently in different market types. Would you trade the same way in a bull market as a bear market or in a bull market compared to a sideways quiet market? successful traders don't one of their core habits as market type identification. They know what the current market type is and adjust the strategy appropriately. Furthermore, they're aware that the market type could change at any time and are well prepared for the shift.

Belief six top traders believe that they achieved their goals through position sizing and not through the entries. position sizing is knowing exactly how much you're risking on each trade. So that You can achieve your objectives. Belief seven. Top traders believe they have an edge over the markets and the edge is an advantage that will overtime provide you with healthy profits from the markets. Examples of ages that successful traders have include technical analysis methods, fundamental analysis, or getting trading advice from someone within each.

More on this later in the course. Belief number eight top traders believe in having a simple entry strategy. Take a successful trader and an amateur one. One is complex. The other is simple, but perhaps not in the way you think. The successful trader has a subtle, insightful and in depth trading plan, but they have rows for entering the market that allow them to act decisively to implement the ideas.

They know that the entry is not as important to their results is how much they trade or how they manage the trade once they have entered all the exits. Amateur traders tend to overcomplicate an overview The buy signal when the real focus should be elsewhere. Belief nine top traders believe in complex exits. While they value simplicity. successful traders may have many reasons to exit from a trade. For example, they may have an initial stop loss.

Profit objective trailing stop, rescue would stop different trailing stop for different market types of time stop all these exits serve to maximize profits and minimize losses. Believe TEEN TOP traders believe in letting their profits run. an oldie but a goodie. One of the habits of successful traders is to let the profits run. If you're in a good trade. Don't be tempted to take your profit quickly.

Either method that protects your gains and at the same time allows you to capture big wins if the trade does go well for you. Belief 11. Top traders believe in cutting losses short. The flip side of letting your profits run is cutting short your losses. successful traders see losses as a cost of doing business and are quick to realize Any losses, amateurs will do anything to avoid taking a loss including holding on to a big losing position. If you do one thing when trading forex, make sure you have a stop loss and abide by it.

Believe 12 top traders believe in understanding the risk reward ratio before they enter into a trade. A Cardinal habit of the successful trader is checking the risk reward of a trade before entering into a position. Belief 13 top traders believe that is okay to lose more often than they win. As long as the profits from the wins are greater than the losses from the losing trades. Belief 14. Top traders believe in developing a mental model of the market.

Successful traders develop a story about how the market works. They organize their thinking into a detailed set of beliefs about how it works and have a routine in place to monitor its elements. And the written version of this lesson. You can see a link to a video by Mark was it Ray Dalio He has made his mental model come to life, belief 15. Top traders believe that they could be wrong and are willing to adapt. Good traders trade what is in front of them.

Most likely you have several beliefs about how the market works. If you hold too tightly onto your belief that you may not see the market for what it truly is, and may miss out on significant opportunities or hold on to a losing position for too long, belief 16. Top traders believe that trading is a serious business, not a hobby. They have a carefully constructed business plan for their trading and follow a rules based approach to selecting entering and exiting positions. A business plan includes objective psychology, trading strategies and contingency plans. Developing your plan should be a fun experience and your plan should be enjoyable to read.

You're not in scope for work, so make it lively and motivating belief 17 top traders believe in recording their trades diligently if I was to ask you what percent successful traders record their trades, you probably say 100%. If I asked you what percentage of amateur traders record the trades, the number would most likely be quite different. successful traders have developed the habit of recording each trade they make. They know that without recording the results, they won't know what is working and what is not so they won't know what to change to improve. Belief 18. Top traders believe in reviewing and monitoring the trading systems successful traders will periodically review this strategies as well as monitor the performance in real time.

Belief 19. Top traders believe that they are the determining factor in the success and believe in the importance of self work. They know their success or failure is entirely dependent on their own skill and the ability to execute so they spend less time focusing on the market and more time on themselves. Belief 20 top traders believe in preparing the mind before they trade like an elite athlete before an event similar to this athletic counterparts these traders have a routine to ensure that their trading decisions are made when they're in the zone. Belief 21 top traders believe in unifying the mind and body. There's a deep connection between the performance of the mind and the health of the body.

You may notice that when you feel an emotion you feel it in your body. You feel tense across the chest or nervous in the pit of your stomach. By helping your body relax, you help your mind to relax two successful traders know this and they make a conscious effort to maintain the physical health. Belief 22 top traders believe in having a life outside the markets. Belief 23 top traders believe in having gratitude. If you have the ability to achieve your goals through trading you are fortunate it can be wise to be thankful and acknowledge the good things you have in life.

Gratitude is highly recommended for traders. Belief 24. Top traders believe that trading is a game and that they make the rules as an individual you trade in an unlimited environment. No one is telling you what to do. successful traders. No they make the rules.

Yes, there is a framework in which you operate. But within that you are free to choose how you play the game of forex. So why not choose roles that advantage you? How do these beliefs compare with your beliefs. And the first lesson of this course, you can log 20 plus beliefs that you hold about forex trading head as the list you made compared to the list above. How many beliefs of top traders do you have on the list?

If you have similar lists, that is great, well done. Your next job is to rewrite your list of beliefs to select the ones that you want to have as a top trader. Decide which areas you would like to learn more about and which beliefs you would like to keep. Now that is a work in progress that you can come back to. Throughout this course, we'll make each of these beliefs your own. I'll see you again in the next lesson.