Tonight I thought I’d highlight a bit of the conversation continuously going on in my head. I actively engage in self-conversation in order to constantly remind myself to focus on a sound and emotionally detached approach to trading. It pretty much goes along the lines of one of my favourite trading quotes:
Have the courage to say no.
Have the courage to face the truth.
Have the courage to do the right thing because it is right.
These are the magic keys to living your life with integrity.
– W. Clement Stone
An inner dialogue typically reinforces the way you think. So the goal is to consciously expose yourself to thoughts that ultimately will positively impact your trading. Through the use of repetition you can considerably strengthen a positive attitude and sound trading behavior. The beauty of it is the simplicity of the method. It’s entirely up to you which trading mantras you want to adhere to. Here are a few that I strongly believe in and that characterize my thinking as a trader:
- Kill your greed
- Isolate yourself from the opinions of others
- Never chase stocks
- Always strive for emotional detachment
- Focus on proper execution
- There is never a shortage of opportunities
- Never make excuses
- Stay in control
- Don’t compare yourself to others
- Always use stop losses
- Standing aside is a position
- Money comes in bunches
- Never add to a losing position
- Stay calm and focused
- Don’t believe the hype
- Cultivate independent thinking
- Be ready for worst case scenarios
- Nosce te ipsum – Know thyself
A trader should have no opinion. The stronger your opinion, the harder it is to get out of a losing position. – Paul Rotter