OTA in XLT teaches 2 things- example trade from good traders, as well as psychology
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Psychology r briefly given.
FOR ALL TRADE-LEARNER ,TRADING NOT NATURAL , u have to go through lot of garbage out for psychologically FIT to be a trader.
A prescription for same is submitted below (u may not agree)
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PURPOSE
Your compelling reason why you trade. It comes from what-matters-most in your life. It can be used as a tool to bring you back from a disastrous rule violation by remembering the reason of why you “must” succeed.
S.M.A.R.T GOALS: Goals are obviously important and effective
Specific, Measurable, Achievable, Results oriented and Time bound goals;
SENSORY RICH VISION for positive mental attitude:
1st List all the benefits and rewards, imagining how your life and how you will change when your purpose has been fulfilled in your life.This builds desire, to motivates positive action.
Every time you conjure this vision, you increase drive & sustaining power, which helps develop plans & habits, & persistence and perseverance toward goals.
Write it down. Have enthusiasm to evoke passion,-trade learning is really a long journey, it will help you reach the goal day after day, week after week, and month after month
VISUAL KNOWLEDGE PLAN –thinking in parts and linking to learn total
A way to identify and evaluate potential mechanical/internal data items you may want to learn .As an example, let’s look at wanting to become a successful options trader
Chart the visual step by step plan with the first box being stock trading and subsequent boxes—like fundamental analysis, technical analysis and so on
Moving toward the final box, an options trader
METAPHOR –
Metaphor is powerful, motivating, healing, and highly effective. Emotions are activated on unconscious levels through metaphor due to rich symbolic associations with concepts, both painful and pleasurable. Metaphors tie into the images and solicit hopes, fears, and longings.
A figure of speech in which a word or phrase literally denoting one kind of object or idea is used in place of another to suggest a likeness or analogy between them (as in drowning in money because of GREED )
: figurative language — compare simile in order to get something done
Start point- "step up to the plate before eating."
With difficult choices, we’re "doing heavy lifting."
"grab the bull by the horns" to "break the ice."
You have in your MAPs, paradigms and mental models, symbols that embody metaphor.
To create change, it’s important to identify and reframe/restructure/redefine underlying metaphors that drive stories about you and the price action.
As you shift your paradigms that are not working for you, it’s important to identify & describe these changes in a way that “brings it home” ie. You are ready to change and this happens best through metaphor modifications.
For example, "I’m in a sea of trouble and feel like I’m lost & a loser if I don’t make money on this trade." How about, “I can turn this ship around; I am the captain and the driver of my results”
REFRAMING –
Changing the context and or the content of an idea to change the meaning and therefore emotionally switch from negative to positive. For example, the idea (the frame) of “losses” as failures can be reframed to losses are only feedback.
THOUGHT JOURNAL –
Tracking and documenting the internal data (thoughts, emotions and behaviors) of a trade.
TRADE LOG –
Tracking and documenting the mechanical data (set-ups, strategies and plan) of a trade.
STOP CHALLENGE AND CHOOSE –
STOP. When you become aware of distracting feelings, interrupt the negative thought/behavior pattern. This disengages you from the pattern and helps you return to focusing in the NOW.
Breathe deeply, count to 10, lower shoulders, Center your physiology.
Check your posture—Unclench.
Begin to assume a posture of personal control. Stand straight, knees slightly bent.
CHALLENGE. Ask yourself 3 questions:
What must I be telling myself, or believing to feel this way?
What is the objective reality?
Is there another possible interpretation?
CHOOSE
Choose a response most likely to line up with objective reality and is most likely to produce your long-term desired result.
EMOTIONAL FREEDOM TECHNIQUE –
• The Setup. First identify an issue and be specific.
• For instance, anxiety or fear - "an inability to pull the trigger on a trade."
• Focus on bringing an emotion or issue into your awareness in the present moment.
• The key of the process is to feel the emotion.
• The Evaluation. Measure how strong it feels on a scale between 0 and 10.
• The goal is to eliminate the negative emotional content or bring it to zero.
• It is important to identify how you feel about it "now" and evaluate this level, not the starting level.
• The Affirmation. Even though I am feeling (or experiencing) this __________ I deeply and completely accept myself. Do this while rubbing the sore spot or tapping the karate chop area of your hand. Repeat it 3 times out loud and with intention.
• Then begin to tap on the meridians The Tapping Sequence. Begin the tapping sequence immediately after completing the affirmation.
• Begin tapping – tap each point 4 – 6 times or as long as it takes you to say the repetition phrase. Repeat a reminder phrase one time aloud, “this (whatever the issue is)” --It helps you to stay focused on the issue.
• 1. Crown
• 2. Tip of eyebrow above the nose
• 3. Side of the eye
• 4. Below the eye, above the cheek
• 5. Below the nose, above the lip
• 6. Above the chin, below the lip
• 7. Below the collar bone next to the windpipe
• 8. The arm pit
• The tapping points are acupuncture points, so they are generally tender to the touch.
• The Re-Evaluation. When completed take a moment to focus on the issue again and how it feels.
HYPNOTIC POWER LANGUAGE – AFFIRMATIONS
Power language is self-talk when dealing with impulsive and compulsive urges.
"Write yourself a new narrative for effective trading results."
Positive self-talk is a way of initiating the coach within.
It helps focus, and relax the body & redirects attention from negative thinking and emotions to goal oriented decisions.
Construct affirmative statements on your ability.
For instance: I demonstrate the ability to reframe events from failures to lessons.
I am able to see my trade and strategy through a new set of lenses.
I manage fear, greed, regret, and anything that distracts from my plan and strategy.
Criteria to formulate a powerful statement for yourself:
Totally positive
Avoid negative words, examples
Don’t…Never…Not…Shouldn’t…Can’t…
Gratitude
Only use past and/or present tense
Use “I” if saying in real time .
SELF-HYPNOSIS –
Self-hypnosis process has 3 phases:
Induction…Deepening…Suggestions
The induction –
• You will be provided 3 keys, each will act as a trigger to open your unconscious gateway –
• This will be given to you in options for each Key after you are in trance.
• You will say to yourself your 1st key/trigger…your physical word that you got from the options given while you were in trance.
• When you feel the physical sensation that will indicate that your subconscious is responding and the portal is opening to begin to go into trance. ----
• Then you will say to yourself the emotional key option that you identified while in trance.
• When you feel the emotional sensation in your heart-space or your chest that means that your subconscious is responding and the portal is opening on the emotional level to go into trance -----
• Then you will count yourself down from 5 to 0 and say either out loud or to yourself DEEP SLEEP… this is the only key/trigger that is the same for everyone
The deepening:
• Trance can be initiated and deepened in a number of ways…
• 1 of the easiest is to use creative ways to count down like seeing yourself in an elevator and counting down a number of floors,
• Or an escalator, walking down a number of steps, walking down hills, going down mountains, a waterfall,
• using your breath (as in “with each and every breath I am going deeper and deeper), going deeper and deeper, etc. …
• Also to repeat instructions to your body to relax, go deeper, calm, comfortable, peaceful,
The Suggestions
• Once you are in a trance state and you have deepened the trance through deepening techniques you are then ready to give yourself suggestions.
• Work with one issue at a time; working with more than one issue can reduce the effect of the suggestion, especially because you are a beginner
• After you choose an issue (rule violation or other behavior that doesn’t serve you, limiting belief, emotional distraction …
• Then create at least 5 – 10 affirmations about that one issue
• Then create a VAK(visually active knowledge) experience to future pace your behavior … picturing your appropriate and powerful behavior.
• Create a VAK future paced “future reality” behavior and code a strategy of how to do it for the results you want by taking the VAK “current reality” and flipping each sight, sound, and feeling from current to future
When you have your “future reality” strategy worked out then visualize the full behavior .
You can write out and record your VAK future pace to have it ready after you have used your Phase I Induction process to go into trance and you have deepened the trance in Phase II.Then in Phase III you’ll either say out loud the affirmations or record them along with your future paced future reality behavior.
This recording can be made with audacity.com and layered with the Focused Intention audio file (music, waves, and binaural beats) for a more powerful experience.
You must practice to strengthen the conditioned response, which can be done by taking yourself in and out of trance several times per day –
Count yourself in and count yourself out –because it only takes minutes to go in and come out of trance you can practice over seconds to a few minutes per day.
Also, practice the deepening phase as well in order to get proficient.
The deepening can take anywhere from 1 – 10+ minutes or as long as you wish.
With regard to phase III you may want to record these suggestions early on, at least until you develop some proficiency in the process.
Just keep a recorder (computer or otherwise) handy after you have recorded the suggestions.
Then when you are in state you turn on the playback and sit back relax and listen to your suggestions
DISASSOCIATION – DEALING WITH FEAR
This involves shifting viewpoint and viewing a specific internal picture (experience) from a dissociated position. This is frequently used to “take the charge off” a negative emotion.
1. Identify a fearful situation or memory and make it a still picture with you in it
2. Put the picture on a movie screen and sit yourself in the theater watching
3. Change the still picture to black and white and make it a movie running it to the end of the situation, the change it back to a still
4. Float out of your body in the theater and into the projection booth; then watch the black and white movie again from the beginning – you are then watching you watch the movie of you.
5. At the end of the black and white movie again make it a still and change the still back to color.
6. Then float or step from the projection booth into the you on screen – run the color movie backwards very fast (a second or so) – do this as many times as you like (usually 2 or 3)
7. Revisit the situation or memory and determine what intensity you have if any of that fear you used to have.
THE SWISH
Swish patterns are for creating momentum toward behaviors that are in your best interest. The Swish Pattern installs choices.
1. Think of a behavior (habit or situation) that you don’t want. When you think of it, do you have a picture that represents the habit or situation? BREAK STATE
2. Get a picture of the type of behavior you would like to have given that situation?
3. Change the submodalities … the visual intensity of the desired state (brightness, size, distance, etc.) for the most “real” or most positive feeling (Kinesthetic).
4. Bring back the old picture (#1), NOW STEP INTO THE PICTURE, fully associated.
5. Now insert in the lower left hand corner, a small, sparkly dot picture of the desired state.
6. Simultaneously, have the picture of the current state rapidly shrink and dissolve while the sparkly dot picture explodes into full view. Be sure to break state after each “swish”(This can be accompanied by either an internal or external SWIIISSH sound, —speed is important!)
CHANGING BELIEFS
1. “Can you think of a limiting belief about yourself that you wish you did not have? What is it? As you think about that belief, do you have a picture?” (Elicit the submodalities) Break State
2. “Can you think of a belief which is no longer true. What is it? As you think about that old belief, do you have a picture? For example, perhaps you were a smoker. Someone who was a smoker, at one time believe they were a smoker, but now they no longer believe that. Where in the screen of your mind is that old belief?” Elicit the SubModalities. For best results, the location should be different!
Change the SubModalities of #1 into the SubModalities of #2.
TEST: Now, what do you think about that old belief?
3. Can you think of a belief that you want to have, which is the opposite of the belief in #1? What is it? As you think about that belief, do you have a picture?”
Elicit the SubModalities.
4. “Can you think of a belief which for you is absolutely true? Like, for example, the belief that the sun is going to come up tomorrow.
Change the SubModalities of #3 into the SubModalities of #4.
TEST: Now, what is that experience of that belief that you used to believe? What is your experience of the new belief that you now believe is true.
ANCHORING –
1) Make yourself comfortable.
2) Identify a state or resource, a feeling that you have experienced in the past that was powerful.
3) Choose an easy to use anchor
4) Now, recall the experience of empowerment, confidence, relaxation, centeredness, curiosity, etc. Make sure you’re associated. You’ll need to "feel" the experience in order to "anchor" it.
When you have experienced this state and all the senses – as the experience peaks – link the anchor, hold for 5 – 15 seconds or just before the experience begins to wane. Then release the touch & "break state"
5) You have created an anchor with this touch. Repeat this process.
6) To test the anchor, blank your mind and "Fire the anchor."
If done correctly (meaning you hold the anchor for exactly the same amount of time and use exactly the same pressure), you’ll re-experience the state anchored.
If not, keep practicing. You may not have been fully associated when you set the anchor – or you may have changed the length held or the pressure.
Make sure that you used the same process of touching to fire the anchor as you did to link it.
MEDITATION –
A way to build patience and begin the trading day grounded, centered and focused in a trading zone
One of the aims of meditation is being fully present and in the moment. Fully present means the mind/body is living and vibrating in this moment, undeterred by distractions. Fully present means focus on task at hand while remaining on purpose, on target.
Surrender and letting things be are prescriptions for success.
Success defined as sitting, standing or walking in the quiet serenity of the highest self. Sit down in a chair, or on a pillow on the floor. The point is to get comfortable. You’ll want to keep your back straight. If you sit in a chair, put your feet flat.
Now, focus your attention on an external or internal point … an imaginary candlelight or picturing your navel. And let the mind be free.
Allow the thoughts to come and go with an intention of un-attachment.
The breath is especially helpful by deeply inhaling through the nose and slowly exhaling through the mouth.
To a cadence count of 4 – 6 – or 8, pausing after each inhale, then slowly exhaling to that same count.
Om’ or ‘aum’ is a universal mantra that works well for assisting in letting go of thoughts. Chant or say the word silently, repeatedly, along with the cadence of your breathing.
It is perfectly OK and, in fact, preferable by many to just sit and focus your attention on your breathing.
There is no set time interval but, generally speaking, 20 to 30 minutes is good
rotect yourself against weaknesses that all traders struggle with