This year has been volatile, confusing and quite blah… I think that’s the official term for it. All the while though, Talking Trading has been there to help you navigate the murky waters of the markets.
The ability to grow, yet be resilient in terms of a big challenge, is known as ‘psychological fitness’. It’s the ability to improve the way you think about challenging situations over time. Psychological fitness affects your thoughts, your emotions, and the way you handle both positive and negative experiences. And, just like physical fitness, it’s something you can personally influence and control, given the right training.
Got What it Takes?
To excel as a trader, you have to train your mindset in several different ways. You need to build your coping strategies, regulate your emotions, and maintain self-control. A large part of improving your psychological fitness involves developing your self-esteem and optimism, while still being realistic about your own abilities. All of this takes a high degree of self-awareness, and for most traders… this doesn’t come naturally. You must focus on these areas to make significant steps forward.
Interestingly, only humans have the ability to think about the way they are thinking. This is called ‘metacognition’. You can use this metacognition to improve your life, maximise your performance, and recover from adverse life events. The more sophisticated you become at examining your own behaviour and motivations, the less your unconscious can play havoc with your trading results. Two traders can trade exactly the same system but get different results. The difference comes from the way they think about money, the markets and themselves.
Fixed vs Growth Mindset
Having a growth mindset is the key.
In her book “Mindset: The New Psychology of Success”, Carol Dweck puts people in two general buckets.
- People with a fixed mindset
- People with a growth mindset
Let’s have a look at how each of these people sees the world, and how this might impact your trading.
The Fixed Mindset person:
- Looks at CHALLENGES and avoids them
- Quits easily when OBSTACLES stand in their way
- Sees EFFORT as fruitless
- Ignores useful negative feedback or CRITICISM rather than changing their behaviour
- Feels threatened by the SUCCESS OF OTHERS
What about a person with a Growth Mindset? They:
- Welcome CHALLENGES
- PERSIST in the face of setbacks
- See EFFORT as the path to mastery
- LEARN from criticism
- Find LESSONS and INSPIRATION in the success of others
When you have a growth mindset, you believe you can gain the knowledge and skills necessary to succeed – which makes every challenge a learning opportunity.
The Talking Trading podcast has been running since 2014. The show is for traders and investors looking for sound, objective trading advice on how, what, when and where to trade. We always have some fun with this topic as well, talking about money mindset, and challenging your beliefs so you can excel in the sharemarket.
The Talking Trading show takes complicated subjects and makes them simple. This year the podcast downloads have grown exponentially – so welcome to all of our new listeners, and for everyone who has been following from the beginning, you have a special place in my heart.
This show features some of Louise’s favourite highlights from the shows featuring interviews with traders and thought leaders to help you develop as a trader.
You’ll hear from Arnold Van Den Berg – a holocaust survivor and fund manager, and then from the effervescent Jerremy Newsome – from reallifetrading.com. Then, hear the wisdom of US-based trader Bubba Horwitz, as Chris Tate and I interviewed him on the topic of Market Meltdown. After Bubba, you’ll hear The Uncut Truth about Female Traders, and also what it takes to develop true wealth with Michael Yardney.
We hope you enjoy this compilation of the ‘best of’ this year’s TT episodes. Chris Tate and Louise Bedford have truly loved bringing you the podcast this year, and we have a couple of extra episodes we’re planning to release as a part of our Summer Series. So stay tuned for that.
About Louise Bedford
Louise is a best-selling author and the founder of www.tradinggame.com.au.
She and her business partner, Chris Tate, have been running their repeat-for-free Mentor Program since the year 2000. They provide simple techniques that you can implement straight away, and valuable resources to enhance your trading so you can maximise your profit potential.