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Free Currency Trading Course

Free Currency Trading Course

Trading Beliefs

Trading Beliefs

2 - 3 - minute read

2 - 3 - minute read

 When we are trading currency markets or any financial markets, we look at the price on our chart and place our trades. That's it! Price, action, trade.

 But are we missing something?  Does each and every one of our trades involve something much more profound than mere visual representation?  By looking at the routine trader takes before every trade, we can learn a great deal.

Routine of a trader

 A traders routine will likely start by the visual scanning of at least half a dozen to a dozen different currency pairs. This scanning will take place by cycling through various currency charts and likely different timeframes. This visual scanning is basically the human mind looking for a pattern. The human brain is a master at pattern recognition. Our imagination can create faces in the clouds by merely filling in the gaps and matching them to a past visual experience.

  The routine of a trader scanning through charts like this is, in fact, doing very much like a mind staring at clouds and formulating pictures. Once the mind locks onto the image, it has 'internally 'generated, it provides us with an Ah Ha! Moment giving us confirmation that we are right and should pay more attention.

 Leaving the cloud analogy and returning the routine of a trader making a trading decision we can see how the traders' mind is looking at chart patterns in an attempt to understand what is going to happen in the future. 

To try and understand what is going to happen in the future with a particular currency pair, the traders' mind will start to create imaginary outcomes. An imaginary outcome is nothing more than filling in the empty space in front of the live market that has not yet been filled by real market action.

 This routine of a trader or rather the routine of the traders' mind is now in an extremely vulnerable state because the tool he or she is using is called imagination.  Imagination gives us the impression that something might happen in the future, but it is only an impression. 

 

So far this decision-making routine of a trader,  he or she has looked at some charts,  imagined the filling in of some blank space on the chart and is starting to create an impression of what might happen in the future.

This discussion started off with the title trading beliefs

Let's now have a look at how this might fit in with the routine of a trader. 

 It is crucial to understand and remind ourselves that from a trading perspective we will not be able to buy the market until we develop a belief the market is going to go up and neither will we be able to sell a market until we develop a belief the market is going to go down.

 What we can logically draw from this is at the back of every trading decision is belief.  Developing trading beliefs about the future price is the balance point between action and inaction of a trader.

 Imagine for a moment how trading would change if instead of charting price alone, we added to that a method that would visually represent the developing beliefs in traders minds.  The very trading beliefs that had produced the price and the pattern that we see on the chart before us.  This would be like getting a heads up, on what was about to happen.  This type of advanced early information would be incredibly valuable for any trader.

 

Trading Beliefs as a trading plan

 Any trading plan that incorporated trading beliefs would by its very nature have to contain at least some means to understand the process of belief formation and resulting outcomes.

One way to approach this without specialised belief tracking software for trading financial markets[ Martin Cole 19/06/19, 1:26 PM

Maybe an article on this?] would be to pay particular attention to how your own beliefs develop while looking at a specific currency pair.

 Firstly, you should print off a chart of a particular currency pair that you are interested in trading.  The reason for printing this off is so that you can physically write on the chart for later reference. What you will be doing here is building up a printed visual directory.

However, this directory is NOT going to be a directory of chart patterns or candle shapes.

Take the time to first go over the chart on your trading screen. As you do pay particular attention to wear on the chart, you start to develop a belief that you know where the market is going to go in the future.

The next stage is to go to your printed off chart and clearly mark the point on the chart where your belief started to formulate. Next, and again right on the printed chart list every thought, idea or nuance that your mind created in support of your belief about future price.

When you have completed this, close the chart on your computer screen and close the folder where you are going to store all your printed documents.

When one full trading day has passed open up your printed chart folder first and go over all the notes you made on the previous day. Remember, what we're doing here is learning how to read trading beliefs. 

 When you have loaded your mind back up with everything that you detailed on the previous day open up your computer screen and look at what actually happened in the market. Did the market conform to your trading beliefs? Were you completely 180° wrong?

 Repeating this exercise in precisely the same format, we have just covered will be training your mind to understand how your trading beliefs are given birth to. As you come to understand more thoroughly how it is your trading beliefs directly affect your trading actions so you will come to understand the same process is going on precisely the same in other traders minds.

 After a few weeks of this, you should be able to make the mental shift from monitoring your own trading beliefs to that of observing the trading beliefs held by the masses of other traders who are active in any particular currency pair.

 When you start to understand how the masses are reacting to the patterns, they see on the charts before them.  And then how they are trading those beliefs that the patterns provided them with, you will start to gain incredible insight into how markets really move.

 

Sticking with this plan,  Learning how to read trading beliefs will give you incredible insight into the movement of financial markets and provide you with the ability to consistently and reliably extract money from it.

Trading plan software

 Do you need software to plan your trading day? No, but what you do need is a systematic plan like that described earlier that you can apply to yourself to better and further understand how beliefs are behind all financial market movement.

That said you might be interested to have a look at what's inside my free wealth creation course.

 When we are trading currency markets or any financial markets, we look at the price on our chart and place our trades. That's it! Price, action, trade.

 But are we missing something?  Does each and every one of our trades involve something much more profound than mere visual representation?  By looking at the routine trader takes before every trade, we can learn a great deal.

Routine of a trader

 A traders routine will likely start by the visual scanning of at least half a dozen to a dozen different currency pairs. This scanning will take place by cycling through various currency charts and likely different timeframes. This visual scanning is basically the human mind looking for a pattern. The human brain is a master at pattern recognition. Our imagination can create faces in the clouds by merely filling in the gaps and matching them to a past visual experience.

  The routine of a trader scanning through charts like this is, in fact, doing very much like a mind staring at clouds and formulating pictures. Once the mind locks onto the image, it has 'internally 'generated, it provides us with an Ah Ha! Moment giving us confirmation that we are right and should pay more attention.

 Leaving the cloud analogy and returning the routine of a trader making a trading decision we can see how the traders' mind is looking at chart patterns in an attempt to understand what is going to happen in the future. 

To try and understand what is going to happen in the future with a particular currency pair, the traders' mind will start to create imaginary outcomes. An imaginary outcome is nothing more than filling in the empty space in front of the live market that has not yet been filled by real market action.

 This routine of a trader or rather the routine of the traders' mind is now in an extremely vulnerable state because the tool he or she is using is called imagination.  Imagination gives us the impression that something might happen in the future, but it is only an impression. 

 

So far this decision-making routine of a trader,  he or she has looked at some charts,  imagined the filling in of some blank space on the chart and is starting to create an impression of what might happen in the future.

This discussion started off with the title trading beliefs

Let's now have a look at how this might fit in with the routine of a trader. 

 It is crucial to understand and remind ourselves that from a trading perspective we will not be able to buy the market until we develop a belief the market is going to go up and neither will we be able to sell a market until we develop a belief the market is going to go down.

 What we can logically draw from this is at the back of every trading decision is belief.  Developing trading beliefs about the future price is the balance point between action and inaction of a trader.

 Imagine for a moment how trading would change if instead of charting price alone, we added to that a method that would visually represent the developing beliefs in traders minds.  The very trading beliefs that had produced the price and the pattern that we see on the chart before us.  This would be like getting a heads up, on what was about to happen.  This type of advanced early information would be incredibly valuable for any trader.

 

Trading Beliefs as a trading plan

 Any trading plan that incorporated trading beliefs would by its very nature have to contain at least some means to understand the process of belief formation and resulting outcomes.

One way to approach this without specialised belief tracking software for trading financial markets[ Martin Cole 19/06/19, 1:26 PM

Maybe an article on this?] would be to pay particular attention to how your own beliefs develop while looking at a specific currency pair.

 Firstly, you should print off a chart of a particular currency pair that you are interested in trading.  The reason for printing this off is so that you can physically write on the chart for later reference. What you will be doing here is building up a printed visual directory.

However, this directory is NOT going to be a directory of chart patterns or candle shapes.

Take the time to first go over the chart on your trading screen. As you do pay particular attention to wear on the chart, you start to develop a belief that you know where the market is going to go in the future.

The next stage is to go to your printed off chart and clearly mark the point on the chart where your belief started to formulate. Next, and again right on the printed chart list every thought, idea or nuance that your mind created in support of your belief about future price.

When you have completed this, close the chart on your computer screen and close the folder where you are going to store all your printed documents.

When one full trading day has passed open up your printed chart folder first and go over all the notes you made on the previous day. Remember, what we're doing here is learning how to read trading beliefs. 

 When you have loaded your mind back up with everything that you detailed on the previous day open up your computer screen and look at what actually happened in the market. Did the market conform to your trading beliefs? Were you completely 180° wrong?

 Repeating this exercise in precisely the same format, we have just covered will be training your mind to understand how your trading beliefs are given birth to. As you come to understand more thoroughly how it is your trading beliefs directly affect your trading actions so you will come to understand the same process is going on precisely the same in other traders minds.

 After a few weeks of this, you should be able to make the mental shift from monitoring your own trading beliefs to that of observing the trading beliefs held by the masses of other traders who are active in any particular currency pair.

 When you start to understand how the masses are reacting to the patterns, they see on the charts before them.  And then how they are trading those beliefs that the patterns provided them with, you will start to gain incredible insight into how markets really move.

 

Sticking with this plan,  Learning how to read trading beliefs will give you incredible insight into the movement of financial markets and provide you with the ability to consistently and reliably extract money from it.

Trading plan software

 Do you need software to plan your trading day? No, but what you do need is a systematic plan like that described earlier that you can apply to yourself to better and further understand how beliefs are behind all financial market movement.

That said you might be interested to have a look at what's inside my free wealth creation course.

Trading Beliefs

Trading Beliefs