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Rande Howell's Material Psychology (www.tradersstateofmind.com)

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Elite Member
milpitas, ca, usa
 
Futures Experience: Intermediate
Platform: Tradestation
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jgomez74 View Post
Rahul

Thank you very much for all your comments and insight.

I see we share very common stuff. I am a computer systems engineer and I sutdied a master in telecommunications and a MBA. However, I also decided to engage into the trading business four years ago. As any other trader, I was looking for financial freedom and also being my own boss and having all the time I wanted to do things I enjoy and not to be a slave of a specific working schedule. However, I thing that during all these years I´ve had less free time because of this trading business.

I´ve been also practicing my trading method during 4 years, although, it has been improved specially on the last year.
After the first year of practicing the method, I became profitable trading on SIM and nowadays, I thing I have mastered it and I trade it with confidence, but trading on SIM. The issues arise when I try to start trading live.

Although I also have to admit that the last time I trade live was not the same as it was the first time. I remember that the first time after a couple of trades, I totally fell into the fight/flight mode and I almost fall into a panic attack.

Nowadays, when I´ve traded live, emotions are not that intense, but still I do not feel very comfortable, but as you said they switch from being a bilogical threat to a psicological discomfort.

Before I started to read Rande´s book, I took a couse maned Mind Muscles for Traders who had a similar approach of being aware of your thoughts, physical sensations and emotions. At that time I decided to stop trading live and go back to SIM. Eventhough I was not losing money, but I made a small profit, I was not glad yet with my results, because mainly the profits I made in a week, then I lost them in the next week.

So I decided to finish that Mind Muscles for Traders course and then to finish reading Rande´s book, so that I was better prepared. From the beginning of the trading journey I realized that the mental aspect or having a proper trading mindset was completely important to succeed, and I have also tried a lot of stuff like subliminal audios and videos, affirmations, writing essays and lifescripts, self hypnosis, etc, but I´ve also realized that all that was not enough since it was not reaching the core of changing the beliefs that were holding me back.

So, I liked Rande´s approach, but still I think the way he propses to change your beliefs is not enough, at least the what he mentions at his book.

Well, I liked a lot the Thinking in Probabilities text. What that text states it´s very important because we as traders believe that we are playing the life in every trade or in every trading day, and that´s why emotions become so arousal.

Merry Christmas and happy holidays!

Jorge

Merry Christmas and Happy New Year Jorge,
I guess most traders go thru this cycle of frustration and learning. ZEN is a lifestyle and life long journey for Tibetan monks. If we expect to master emotions over a weekend course, it will result in disappointment and frustration. I think at some point we will have the wisdom to be patient and keep working at it .

Jorge, in my personal experience SIM trading only does few things, master your platform and methodology and provide statistics for the system. During the SIM period, I tracked all my trades, including the ones that I take and did not take as per the strategy on an excel sheet and came up with the statistics over a 3 month period of time. Eventually when I plotted this, I got a clear view on the statistics of my system. Please note, if you tweak the system in any way, you will skew the numbers and may not be accurate. Statistics will help you with developing trust in your system.

Bottom-line is SIM trading tells me the statistics for my system if it is executed as per the plan. I am able to execute SIM trading as per plan since emotions are not as high as in live trading. If you exhibit impulsive behavior in SIM trading or are unable to follow the plan, then this has to be addressed during SIM trading.

I never went back to SIM trading after this initial period. Instead, I traded very few contracts and worked on my emotions. If you dont have trust in your system backed by statistics, you will be tempted to tweak the system with few trades that result in a loss.

Working with beliefs will take time. It is a process where you start observing your thoughts and eventually tying it to an underlying belief. Rande ties the thoughts to Archetypes from Jungs method, which is pretty powerful in labeling and understanding the thoughts. I was amazed at the amount of negative thoughts I had and how I was fused with it, taking me for a ride. I am still working on this aspect, will provide an update in few months time.

Now my struggle is with myself . The reality is, trading gave me the opportunity to look at myself in a more meaningful way. I intent to continue and explore further in this path.

Merry Christmas and Wishing you a fantastic year ahead !!


Last edited by rahulgopi; December 24th, 2014 at 02:38 PM.
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