Self-Confidence is an essential starting point for any business venture. This is true even more if the business is trading in the stock market because psychology plays such a major role. Keep reading, this might change your life!
About 10 years ago, I received a copy of the book “Think and Grow Rich!” written by Napoleon Hill. Today, I credit most of my success in business (including trading) to this book.
At first applying some of the principles described in this book appears a bit crazy – for example reading a Self-Confidence formula and a Definite Plan aloud every day. But you really have to look at it with an opened mind and believe me (and many peoples who have made millions) this stuff works:
Here is a brief overview (you really need to get the book):
– First – you must have a burning desire – for a trader this desire should be “to become a consistent winner in the stock market”.
– Second – you have to have a definite goal including the amount you want to make and the date by which you want this money to be in your account.
– Third – You need a definite plan, or what you will do in exchange for this money.
Here is an example of a plan – it is generic enough to be applied to most trading styles. Items specific to your style should be added. Your plan should be read aloud first thing in the morning and right before going to bed.
– I will follow a trading plan to guide my trading – therefore my job will be one of patience and discipline
– I will plan each trade carefully – I will not jump into trades by fear of missing out
– I will monitor the market’s current picture
– I will monitor the current picture for each industry
– I will manage my trades to protect my capital and my profits
– I will protect my capital through good money management
– I will take responsibility for all my actions.
– I will trade to trade well and for the love of trading, not to trade often and not for the money. The money will come as a result of trading well.
– I will not be influenced by the opinions of others. I will reach my own decisions and follow them.
– I will build the self-trust necessary to operate in an unlimited environment which has no rules.
– I will be rigid in my rules and flexible in my expectations.
-I will never think that taking money from the market is easy and I will never assume that I know enough.
-I will have no particular expectation when I place a trade because I know that anything can happen.
-I will treat trading as a probability game in which I don’t need to know what is going to happen next in order to make money. All I need to know
is that the odds are in my favor before I put a trade
– I believe that I deserve this money. I believe that I will have this money in my possession. My faith is so strong that I can now see this money before my eyes. I can touch it with my hands. It is now awaiting transfer into my account. I am awaiting a plan by which to accumulate this money, and I will follow that plan when it is received.
Read (and reread) this book and apply its principles to your life – and notice the difference in your Self-Confidence.