Page 65 - Trading #101 Course – PART II TWO: SUCCESSFUL TRADING PIE – www.traderscoach.com

TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM

One basic lesson in psychology is that significant change in can be disruptive to one’s
emotional stability. For this reason, even after you have attained the trader’s mind-set,
there likely will be times when you will have setbacks.

Having setbacks to a strong and healthy trader’s mind-set can happen for these
eight reasons:

1. You are pushing the envelope and working your way up to a higher
profit plateau, which causes stress by changing your underlying
structure.
2. You are experiencing physical illness yourself or caring for a loved one
with a physical illness.
3. You’ve had a change in environment, such as moving to a new office
or home.
4. Death of a loved one.
5. Birth of a loved one.
6. You’ve had a change in relationship status, such as a new marriage or
a divorce.
7. You are experiencing financial burdens, loss of a job, or unexpected
catastrophe.
8. You are experiencing financial windfalls and success, such as
inheriting money, winning money, or becoming more successful with
your trading.

Significant life changes can be disorienting phenomena for humans. And as we get
older we have even less tolerance for dramatic life changes. This applies to all types of
change—good change and bad change.

For example, sometimes when people win a multimillion-dollar lottery jackpot (which is a
good change), they experience extreme amounts of stress and discomfort. After the
newness and shock of the winnings wear off, they very often say that they were happier
before they won the money.

The change in lottery winners’ financial standing affects their emotional stability. They
may feel guilt over winning the money, fear over losing the money, distrust of friends
and family members who may want to share in their new money, and just plain old
discomfort over the newness of the money.

Friends of mine won $2 million years ago, and have since lost all the winnings and
become divorced. It seems unbelievable, but to watch them go through the process was
a learning experience for me.

And, if you think about it, this lottery example is like when a novice losing trader
transforms into a winning trader, or when a moderately winning trader transforms into a
substantially winning trader. The newness can be disorienting, and you must guard
against slipping into a self-destructive mode.

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