Mental Levels

Feedback from an old pro trader:

After over 30 years of being involved in the futures markets I have now come to the conclusion that the old cliche about trading being 90% mental is really true. As I have stated before Trend Following may not be everyone’s cup of tea either because of emotional or perhaps financial issues, but I can guarantee you one thing-trading AGAINST the trend in any time frame will lead to a very short and painful trading career be it hourly or weekly. I have been listening to some of my old “mental” tapes and here are the “Mental Levels” of trading successfully.

Unconscious Incompetence: You don’t know it and you don’t know you don’t know it.

Conscious Incompetence: You finally figure out you don’t know it and are aware there is something you need to learn.

Conscious Competence: You now know it for the most part and frankly this can be a difficult stage for some like me. I knew that I knew it but if you still have to think about it “as in pulling the trigger” on a trade things can still be difficult.

Unconscious Competence: Where I am now I don’t even think about “it” I just do “it”! There are no parts of my brain screaming, “Is this really a set up?” or “What if this does not work?” I have found myself in the “flow” and have accepted that losing trades simply put me closer to winning trades. I have also become more humble realizing what I had to go through to get “here” and the funny thing is that I truly feel I have only scratched the surface of what I have yet to know! Have a great trip to the Far East!

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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.