Below you will find some free trading, investment and other related information.
Your state (your mood/how you feel now) is the most important part of trading, investing and life! Everything else is secondary and a result of this! Your state is affected by:
- What you think > what you feel > what actions you take > your visible results
- What you watch and look at
- What you read and listen to
- What you say to yourself and others
- What you do
- What you eat and drink
- The people you hang around with
- Where you live
- Your purpose and dreams
Where your attention goes, everything grows. What you put your attention on, what you think about, what you believe, will show up as your visible results in life, and in your trading & investing!
Powerful people just know everything will work out perfectly. Just know your dreams have come true now - hold that state, feel it, enjoy it, play/pretend, it's fun not serious. Everything will change now when you do this, as there is nothing but now.
Unless you realise you create everything, you won't be able to change anything (as it wasn't you who caused it).
Your beliefs filter your reality, when you change your beliefs you change your reality! List them, just write them out and look at them. Go through each one and ask, does it serve you? Is it helping you? We all have beliefs about our self-worth, how capable we are, what we can earn, how good we are, what we deserve... You've seen people win the lottery only to be in debt 3 years later. The money didn't change their beliefs, it only magnified them. Hence to be successful in any endeavour, just pivot your attention to the positive and successful outcome you want (it's a simple instant technique).
After writing down your beliefs and finding some that are definitely not helpful, simply discard them and adopt new beliefs that are helpful - it's a logical decision to make, and is very easy to do once you've stepped back and analysed them objectively.
Keep your state and everything listed above high (feed yourself on high vibrational, motivational and inspirational people, books, videos, sayings, pictures, thoughts, places etc) - if you dropped a bit, what was it, get out of there:)
All your decisions, spontaneous intuition/knowingness, opportunities you grab, come from your state.
One last thing which is especially magnified in trading (trading pretty much instantly magnifies your weaknesses and throws them up in your face). A human being cannot make rational and clear decisions while emotional. Do not make any decision while in an emotional state (whether excited, depressed, ecstatic, fearful...). Instead wait till you are calm, balanced and relaxed or it's going to be expensive;-)
"What lays before you in life is limitless opportunity" Jonathon
You have to have a clear (clarity is power) vision of your dream - the result - what is it?
Just as in gaining anything in life, you need to know exactly what it is you want. What amount of money do you exactly need to make from your trading/investing to achieve your dream?
Only once this is defined can you start to design a trading or investment system tailored precisely to achieving this end result.
By the way, a lot of people say in life: 'if only I knew what I wanted to do' Well, it is always the thing you love doing, what you spend a lot of your free time doing, what you love reading or talking about, the clues are there if you just notice them. Everyone is unique, and is on a unique path, hence it is that uniqueness that is your niche of success.
To leave your job and become a full-time trader or investor takes a decisive act, a decision to take control of your life, you have to make a wholehearted public commitment to doing it, it takes guts and no turning back (do this only after gaining a great deal of understanding of trading/investing - or completing a master trading course, plus having some capital and survival money). But in all acts of boldness and courage, the moment one fully commits, then and only then does providence move too. It will greatly help you if you realise it's not about the money, but using it to find a way to add value to or solve the problems of other's lives - that's where the real dream begins.
Now, having a clear goal, you need definite unbreakable rules that keep you on track and always heading towards your dream. Structure has integrity. A person without rules in an area of life will be like water without a definite container - all over the place! In trading and investing you need rules or you lose, same in any area of your life that you want to be successful in.
A trading 'mistake' is defined as not following you rules! Most people think of being right as making money on each trade, but being right is following your rules on each trade. Making money on each trade is impossible anyway. Forget about being right and making money or you will lose money and be wrong. Instead focus on completing each trade according to your rules and the money will automatically mount up as a by-product. The world's top super traders get 65% of their trades completely wrong (and could possibly look stupid to the uninformed), but follow their rules, hence are multi-millionaires.
Being right is a fascinating subject. Unsuccessful people focus on being right and looking good the whole time. Successful people know that sticking to their rules is vital, and that is what they focus on, they don't care about looking good or being right as this would cause them to violate their rules thus losing the bigger picture millions.
Following your rules in any situation allows you to let go of the tension of always trying to be right. It also eliminates your emotional responses to price movements/things happening in life (as you can't lose in the long run by following your rules - but you can lose by breaking them in the short term to 'look good/be right/profit on a trade). That is when life becomes fun too, as there is then no pressure - no one works well under pressure despite what you read, under pressure people lose their natural ability and effortlessness, they start thinking about things instead of just doing what they know;-)
Let me give an example in life of this:
A tennis player may have no rules before a tennis final match. Hence he/she's just been belting the ball and playing full-out. But then it comes to match point, and suddenly he/she starts thinking 'ooh I just need to win this point and I've won, wow I must be careful now' and they change their game style to just tapping it hoping the other will make a mistake. Of course they end up losing as they changed the winning formula that got them to that point - because they had no rules. They would have won if their rule was to: belt the ball and commit to every shots 100% of the time on every point (or at least would have won in the long run by greatly improving, instead of dropping back to tapping the ball when in trouble, thus causing them to never improve).
A person improves in the long run when they stick to their rules, or can break them to look good temporarily but lose their end goal/dream in doing so.
So in trading, you don't need to win each trade or look at how much money you made, but instead focus on increasing the number of times you followed your rules on each trade - that is you 'Efficiency Rating'. Can you get all the way up to 100% efficiency rating in a year of trading? You will not make money until you are above 95%...
Now you realise why very successful people often love looking silly and having fun - they know they'll win in the long run (what you don't see below this fun is a very wise set of rules/strategy that take the pressure off).
95% of people have no plan for their life - why only 5% of the world is successful (doing what they love and getting abundantly rewarded for the value they bring). Can you imagine trying to build a house with no plan at all? It would literally be a mess, disorganised, all over the place and way off what it should look like...
It helps to have rules and a system you follow in trading (and life), as it takes emotion/moods/news FUD out of the equation. If you don’t have rules and a system you will make trading decisions willy-nilly by your mood in the moment making it impossible to win – partly why all new traders fail, they don’t have rules or a system.
You may soon realise that many areas of life are designed as a trap by those who profit from your unawareness as to how it works. You have to know how these traps works (PAYE job, tax, trading, money/Federal Reserve, pensions, alcohol, junk food, unconscious mind, inflation, memory, businesses, spiritual, saving, spending etc).
It also helps to measure yourself monthly (income, expenses, savings, workouts etc) on a graph statistically, or how will you know when things are starting to dip or getting over extended (carried away/over confident) till it's too late.
For instance, a great example of a 'money management system' in life is T. Harv Eker's Jar System:
Why People Fail at Trading
There is a reason why highly successful and intelligent people (doctors, engineers, lawyers, professors, CEO’s etc) fail at trading. These people were all great at controlling their environment and others, but you can’t control the markets - these are not transferable skills. Instead of controlling your external environment you have to control your mental environment. And it is this that they missed. They assume they are failing due to not knowing enough about trading techniques or technical analysis or using different indicators (which is a never ending black hole of learning), when in fact it was their beliefs and attitudes that needed attention. Attitude produces better results than technical analysis.
The pattern of a typical person: they start out care & fear free (and possibly win a bit), then they end up losing and become less care free and think they need to study more about the markets, which they then do. They then try again with their new systems etc. but this time much more apprehensive and again eventually lose. They then study more and more but find their trading makes next to nothing or is costing them money. Finally they call it a day. Very, very few go on to realise that it is their attitude & beliefs that are causing them to lose, and not the endless (in their minds) lack of trading knowledge.
Winning consistently is a state of mind, just like happiness, fun & satisfaction. Your state of mind comes from your beliefs & attitudes. If you depend on outside events to make you happy, it is extremely unlikely you will be consistently happy. But if you can neutralize the beliefs & attitudes that prevent happiness, it's a different story.
Traders who are consistently successful are like this as a natural expression of who they are. The very act of trying will take you out of the care & fear free opportunity flow - 'the zone'. When you are in the flow you don't have to try to be courageous, have nerves of steel, reduces stress, be strong, force things etc as everything you know about the market is available to you, nothing is hidden by fear, bias expectations (distorting your view) etc. Your actions seem effortless as 'having to try' indicates some degree of resistance against another part of yourself. Instead, you can just trade the unfolding opportunities of the market as it presents them (with no bias expectations, thus seeing things as they really are).
A professional trader's belief: A loss is a vital part of my trading strategy and enables me to learn. It's also like the expense of a flower shop buying flowers - part of the business model. My winning trades by far exceed the losses of my other trades. I do not have expectations or demands of the market but jump on whatever opportunities it happens to presents (in either direction), thus not picking/choosing information that would be in line with an expectation of where I would have thought the market was going.
A professional traders beliefs:
- Utterly anything can happen at any time in the market
- Fully accept the risk
- The now moment is always different & unique
- I never know which trade is going to work & which one isn't - nothing is 100% certain, that I'm certain of
- Predicting outcomes is dangerous to your trading
- Look at the experience as simply pointing a way to something you need to learn
- A person's beliefs are always revealed by their actions
- Think in probable outcomes, uniquely probable outcomes at that
- The market is a constant flow of known & unknown variables creating probabilistic environments where we do not
know for certain what will happen next
- Predefine risk always (what would the market look, feel & sound like to tell me the trade is not working)
- Self-awareness (check your mood/state)
- Position sizing is vital or no trading works at all
- Low risk, high reward
- Trading is a numbers game, your edge (how you interpret the charts) puts the odds in your favour, thus every loss
puts you closer to the win (right or wrong, win or lose no longer have significance individually)
Everything that you 'could have', 'should have', 'would have' done in the moment appeared invisible (due to fear, expectation, euphoria causing you to block, bias or obscure information from the market) but becomes painfully evident after (as you've now dropped these attitudes and can again see clearly).
Only the best traders have fully accepted the risk (completely ridding all fear), utterly knowing that anything can happen (ridding all bias expectation & euphoria/overconfidence), perceive only what the market is offering now (bypassing the forces of their past mental environments from effecting the new unique physical environment of now), enabling them to slip into the NOW OPPORTUNITY FLOW by seeing the chart and market as it is, and acting accordingly.
They've set all the risk, money management, stop loss, take profit etc parameters that now, within this structure, allows them to enter 'the zone' which is innately creative and intuitive (due to seeing the whole picture/information without wearing any bias belief blinkers - thus all opportunities are now visible).
Recklessness: You have to counteract the negative effects of euphoria and overconfidence that come from a string of winning trades. When you feel just over good you become reckless.
Fear: You have to eliminate all fear and its effects of freezing you or making you want to escape. When you are fearful your focus is narrowed to what you fear, thus missing and blocking all the other vital decision-making information necessary to correctly evaluating. Threat of pain, generates fear, and is the source of 95% of trading errors (but a professional trader does not see a loss as painful, hence no fear is generated, thus staying in 'the zone').
Both the above attitudes of fear & euphoria (plus bias expectation) reduce your ability to be consistently successful.
Remember, the best traders think in a number of unique ways (not at all like the CEO’s, engineers etc mentioned above), they have acquired the mental structure that allows them to trade without fear, but also not to be reckless.
As the artist uses its mediums such as clay, paint, metal etc, the professional trader’s mediums are attitudes and beliefs.
When you trade with your own ideas, from your own creativity, you get instant feedback you can use to further improve.
Responsibility in trading is planning a trade and accepting the risk, irresponsibility is trading randomly and not accepting the risk.
The ultimate goal is consistency, you have to think like a consistently successful trader. You want a steadily rising equity curve with relatively minor drawdowns (normal losses that any good trading system incurs) - not the euphoric boom & bust.
Risk - How to Eliminate Fear
You have to fully accept the risk of a trade (or whatever you are about to do in life), thus making you completely comfortable & fear free with it (enabling you to think clearly through it). To the degree that you don’t accept the risk is the degree you will make incorrect decisions as fear/panic will be guiding you. Losing money & being wrong are generally the most feared things in trading – unless you accept the risk of them.
The Zone: Most athletes never reach this level of play, because they never get past the fear of making a mistake. Athletes who reach the point where there is absolutely no fear of the consequences of screwing up, will usually, and quite spontaneously, enter into ‘the zone’. It is a state of mind you find yourself in that is inherently creative, and usually if you start thinking about your actions at a rational or conscious level, you pop right out of it.
Fully accept the risk, and all the different outcomes and possibilities entailed - this allows you to step forward into an experience taking full responsibility for the outcome, and extract the insight that's been made available by doing so.
On the other hand, when you shift responsibility you cut yourself off from what you need to learn. If you are not responsible for your results there is nothing to learn, hence you won't change, thus will perceive events in the same way and stay continually dissatisfied.
Winning Attitude: positive expectation of your efforts with an acceptance that whatever results you get are a perfect reflection of your level of development and what you need to learn to do better. Developing a winning attitude is the key to your success. You are responsible for developing your own winning attitude. A winning attitude is far more important than technical analysis or your trading system.
It does you no good to take the risk of putting on a trade if you are afraid of the consequences - as it will take you immediately out of the opportunity flow.
Only the best traders in the world predefine their risk, cut losses (the second the market tells them the trade is not working) and systematically take profits - as they know & believe without a shed of doubt that anything can happen at any time! Why the elite traders are utterly and constantly focused on continually managing their risk! They all have organised, systematic money-management regimes!
Expressions that are more likely to help you accept the risk (thus take out fear - enabling clarity): "fu*k-it", "who cares if I lose, it's a pre-predicted tiny amount for a huge potential return", "just give it 100% and have a complete laugh", "who cares what people think" etc. you get the idea;-) as opposed to "I must make £500 on this trade", "it's definitely a million percent going up", "I must have nerves of steel", "I have to do this" etc...
Apparent Success Vs Actual Success
A person can easily get off to a lucky start in trading and win a string of trades which automatically gives them a carefree and fear free mind-set (which all great traders have). But this amazing attitude came as a by-product of winning - unlike the professional trader who took time to develop it. Hence in life, a person can appear extremely good and confident at something while their stroke of good fortune continues, but the minute there is a loss it all goes to pieces. It's how they handle the losses that reveals the true level they are at.
Handling a Loss
A professional trader operates out of the belief that there is no possible way to avoid a loss, as losing is a natural consequence of trading - no different from a grocery shop owner incurring the expense of buying vegetables, it's part of the business. He/she has also completely accepted the risk, meaning they have considered and accounted for all of what would otherwise be the unacceptable possibilities in the market’s behaviour, both financially and emotionally. With these beliefs and expectations it is unlikely they would experience a deterioration in attitude, and would simply go on to the next trade. Allowing them not to get bogged down by regret, self-pity, self-criticism etc.
But suppose they hadn’t completely accepted the risk, and his/her expectations did not take into account any market behaviour other than what he/she wanted? Depending on how much energy is behind these expectations, is the degree of hurt they will feel when they are not fulfilled.
The mind is programmed to avoid physical and emotional pain. While this has uses for avoiding physical pain in the world, it stops you succeeding in trading. The minute you feel emotional pain in trading your mind will automatically start avoiding information that it deems painful. Thus you will be suddenly trading with less vital information to make decisions with.
Example: You're in a trade that is going against you and instead of facing the pain of dealing with it or cutting it short you leave it to run in the hope of it eventually coming back. It doesn't, and you finally have to exit at a huge loss. Once out of the trade you say "if only I had cut it off early and reversed it" - funny how when there is no pain you can suddenly see things clearly again;-)
The mind avoided the solution as it deemed a loss painful - why you can't trade trying to avoid losses. Same in a game of tennis, if you are tying never to make a mistake, the more mistakes you will make as you are now not accessing all information clearly. Accept fully that you can make mistakes and lose, who cares, now you can focus fully on enjoying the battle and playing care free, fear free tennis, which automatically gets you into 'the zone' - same in trading.
One of the main characteristics of euphoria is that it creates a sense of supreme confidence where the possibility of anything going wrong is inconceivable. In this state you can't perceive risk correctly. As you believe nothing can go wrong, you feel you have no need for rules or prudent boundaries to govern your behaviour, hence you end up putting on larger than normal positions and trading more than you should (more than the system that got you there advises). You believe the market will do exactly as you expect, and with these large positions it only takes a small move in the wrong direction to start harming you! Thus the boom/euphoria you are experiencing will inevitably bust. This is why you see many people, nations etc going boom and bust only to do it all over again due to not understanding how euphoria works.
You were betrayed by your emotions not the market. But not understanding euphoria the average person will resort to blaming the market and feel compelled to learn more about it, thus gaining confidence again with this new information and once again cross the threshold into euphoria, and so it goes (unless they read this paragraph;-).
Arrogance, overconfidence, euphoria, thinking you know it all, closed mindedness, fear, bias expectation/beliefs etc are all traps in trading, as they are in life too, as they make parts of the full picture/reality invisible.
Everyone seems to have a different threshold for when euphoria/overconfidence starts to take hold of the thinking process, but the moment it takes hold, the trader is in trouble.
Example: Just because you've had a few good bets in a row at the casino does not change its odds, so don't change the bet size (as overconfidence will have you do), same with hesitating or lowering your bet size as you've lost a few in a row (as fear will have you do) - but stay consistent.
- Making general accidental mistakes (like pressing the wrong button)
- Losing and misplacing things
- Not focusing/working at critical moments, preferring to indulge in distraction: watching TV, looking at Facebook
- Having a huge bet or trade out of nowhere
- Indulging in incorrect activity for the situation
- Losing huge sums of money in totally unrelated areas of life to trading
- Way overspending, over eating junk food, over drinking, reckless sudden decisions etc...
Basically not doing what you should be doing, not doing what is optimum, thus bringing you down in some way. These stem from conflicts within yourself that could come from upbringing, conditioning, religious beliefs, trauma etc. It's showing your mental environment is not aligned with your goals (we all have them by the way). These can result in conflicts about money, about winning, about being successful etc.
An extremely talented trader who has an amazing trading system, who has great risk management but has not recognised and compensated for areas of potential self-sabotage will sooner or later lose.
The professional trader, professional gambler and casino have utterly no clue as to what colour, number, card will come up next, in fact it is scientifically proven that each individual spin is completely separate and totally unrelated to the next or previous spins. Just as the pro trader has no clue as to whether an individual trade will win - and does not need to! At the micro level it is impossible to tell if a single bet/trade will win, but over time it is the complete opposite, as at the macro level the professional trader, gambler, casino know they can't lose as their edge (the fact that human behaviour always repeats - as seen in the support/resistance, chart patterns etc) will play out in their favour over time. Hence they are uninterested and immune to the single 'amazing' possible trade, as they know that's the loser's playground, who tend to place special significance on a factually unpredictable single event! The professionals don't care if there is an individual win/loss etc, as they consistently win for the rest of their life.
Just as in life, it's far better to make a consistent little change, than to make a huge one-off change (that rarely lasts).
Tries to predict the market, and will only bet when they are certain they are right (causing them to never bother
defining their risk). Being wrong is simply unacceptable to them (remember our minds are wired to associate -
as a result being wrong on any trade has the potential to be associated to any or every other time you were wrong
in your life - potentially tapping you into a lot of pain, making each trade a 'life or death' situation, when it should
be just another trade in a system that does not rely on or even care if an individual trade is right or wrong).
Makes decisions doing no research. Keeps believing in something even though the whole landscape around it has changed. People fear what they don't understand, better to understand it first, then make your decision.
There is a huge gap between planning and talking about a trade, and actually doing it. Until you are actually in the trade you planned, only then can you knowledgeably talk about its experience. It is of little use talking about trades you were going to do or are thinking of doing, as they are not real. Same in life, listen to the people actually doing it, not the 'all knowing' and often full of themselves media critics who mostly deal in hindsight.
You see countless lottery winners, celebrities and others, who've come into money, only to lose it all within 3 years. This is mainly due to the fact that they did not know the difference between:
Cash Flowing Assets Cash Appreciateing Assets Liabilities
- A Business - Property - Cars
- Dividends (from shares, cryptocurrencies) - Gold & Silver - Yachts
- Rental Income (commercial or private property) - Land - Designer Clothing
- Royalty Payments - Works of Art - Jewellery & Watches
- Debt Funding - Fine Wine - Expensive Toys
- Trading - Shares & Cryptocurrencies - Luxury Holidays
Typically the first thing a person does when they come into money is buy a fast car, luxury holiday, mansion, lots of designer clothes and expensive toys. And they then wonder where the money went in a few years when they are trying to pawn their gold Rolex to pay their debts.. The first thing they should have done would have been to immediately invest in Cash Flowing Assets, thus paying them a salary/income every month for the rest of their life! They then can splash out and buy all their luxury holidays and designer clothes from this monthly income - thus not killing their golden goose. You always and only buy your liabilities from the income from your Cash Flowing Assets.
Buying Cash Appreciating Assets is hoping that they will go up one day... This is what the average person is taught to do (why they are not rich). The billionaire is solely focused on buying lots of Cash Flowing Assets (why they are billionaires).
In 5 years (no matter what your age) you can achieve great wealth. Change your focus from spending on liabilities (looking cool) and instead save only to invest in Cash Flowing Assets. Focus your energy now on aggressive capital growth, just for 5 years, work hard now, put in the time now, then you can in 5 years 'retire' and focus on capital preservation. If you don't do it now you are losing time.
Just work out what your dream/ideal monthly income is? Then work out how much capital (in Cash Flowing Assets) you would need to produce this? (8% is average cockroach fund return) E.g. Want £10,000 per month, then need £1.5 million. Once you've achieved that £1.5 million you have your dream life forever after.
Any losses or mistakes should be measured in time (what amount of time to your 5 year plan did it add on!). So losing £10,00 might have cost you 4 months of extra catch-up time. Make any mistakes fast and never make them again. And make sure your risk management never allows you make expensive mistakes.
Someone can be ecstatic to have made £20,000 on a trade/deal, but what amount did they risk to make it? If they risked £100,000 it is very bad ROI. Make sure your risk is low and reward high, minimum 1 to 3+.
Due diligence is everything!
Know your key monthly statistics: income, expenses, savings, liabilities etc.
Assets can quickly turn into liabilities - so they need constant management.
Use a correct spending habit system e.g. T. Harv Eker's Jar System etc. Compounding is very powerful, do it every day and it will hugely change you a year or more later (but seems invisible at the time). By the way this applies to diet, gym workouts, learning etc.
Asset, market, financial, economic etc. bubbles always and only pop when the public get in! Without the public they probably would not have popped. It's that last leg of the bubble, where it starts to go parabolic, that is the public mania frenzy - no market can keep going straight up! Get out when the public finally get in (when 'Dave' down the pub and the in-laws are raving about it). A crashing market moves 10x faster than a rising one - greatest opportunity for gain. Be a bubble hunter:
You can either come from what you know (similarities/past experience) or believe in the uniqueness of each moment (where no past limiting beliefs can exist) which allows you to access the full picture (automatically causing new ideas, insights, intuition, creativeness etc). It also cures fear and other irrational (out-dated) murmurings from old beliefs etc.
A belief does not like to be challenged or unexpressed, it also has a pain avoidance mechanism where it will avoid, not listen to, distort or make invisible that which is not in agreement with it. Hence large chunks of reality will be invisible or hidden. It associates particular current unique experiences to being exactly like particular past experiences (it's lost its ability to differentiate concerning that belief).
When beliefs hide and distort parts of reality that are not in agreement with it, it is thus hiding (making invisible) opportunities in the process, plus leaving less information visible to make well informed decisions from, making a person seem 'stupid' or 'irrational' to someone who does not have this belief and can see the whole picture.
Assumptions; again block a person from seeing the whole picture. Sort of like judging, it can impair your ability to get all the information. Expectations are beliefs projected into the future, again expecting causes a person to miss things they didn't expect - narrowing their view of everything.
The Greatest Reading List
To be read in order
Enjoy, all the best, Jonny Lej :-)