Date: 8/12/2021
Author: Chris Hood
Be sure to check out new episodes of my video podcast each week, where my ace pupil Brian Jones and I talk the ins and outs of options trading- and give you insights and strategy that you can immediately put to work for you in the markets.
Trading isn’t just about trades. In fact, your mindset is more important than any set-up, stock, or strike price.
I’ve said this before, but it bears repeating.
“You must accept responsibility for every win and loss, and whether or not you’re consistently profitable is completely up to you.”
This was my most significant personal challenge as a trader – realizing that no one was to blame for my results but myself.
“One of the most significant findings in psychology in the last twenty years is that individuals can choose the way they think.” —Martin Seligman
Many years ago, when I began trading, I read ALL the books.
I’m a voracious reader, so if it’s a book on options, it’s probably on my shelf.
I read and traded according to the strategies they outlined, but I just couldn’t turn a consistent profit. So I blamed the books for my failure.
Next, I moved onto a few different proprietary systems sold by other traders online. Again, there was little personal coaching, just a set of rules I tried to follow.
Guess what – I still struggled.
“Those guys just didn’t know what they were talking about.”
But that wasn’t the problem.
Each time I externalized my failures when I pointed blaming fingers at the market, books, or others’ systems, I neglected the most essential piece of the puzzle.
Myself.
“If you could kick the person in the pants responsible for most of your trouble, you wouldn’t sit for a month.” ― Theodore Roosevelt
Personal accountability and harsh introspection are two of the most significant challenges you’ll face as a new trader.
Teaching trading strategies is easy, but getting your mind right is much more difficult. So say it with me:
“I am responsible for everything that happens in my trading.”
Once you admit that, you’ll start dissecting your trades to find out what went wrong, and that’s when you’ll start improving.
The longer you deny this truth, the longer it will take you to become profitable.
This is not a warning not to read books on options or investigate other trader’s strategies. However, always that how you apply that information in the market is on you.
“Wherever you find a problem, you will usually find the finger-pointing of blame. Society is addicted to playing the victim.” ― Stephen R. Covey
So your homework is to start journaling about each trade.
Not just the technicals – how you felt when you placed it, your emotional state as you managed it, and win or lose, why you closed it when you did.
Just be honest.
“I was anxious during the trade because I couldn’t afford to lose.”
This means you put too much at risk. Size your positions small enough that you aren’t worried about them.
“I got excited and took profits at 20% rather than waiting until 70% as my plan stated.”
Here you find that the greed monster has reared its ugly head. Stay in and capitalize on the big move.
Just a few examples to get you going.
What I lacked during my formative years was a good mentor. A coach who could reassure me when the market was bumpy, talk me off the ledge, and help me fix both my strategies and mindset.
This is what the Alpha Hunters program is all about.
It’s a trade service for sure, but it goes much deeper. I’m here for you as a coach, and I’ll do whatever I can to help you get better.
Fix your mindset, and you’ll fix your trading.
It’s as simple as that.
