How to Build Winning Beliefs? – Part 2 – Creating The Winning Cycle

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Now that you understand what the Belief Cycle is all about (see last week’s article), let’s dive into a few more useful details.

As you can see that a winning belief cycle has lots of benefits. However, the biggest question you’ll probably ask is this – “Where do I start (in trading)”? Well, the honest truth is that it really doesn’t matter where you start. More importantly, you need to know where you are right now within the cycle. Once you’ve figured that out, you can apply the following in your trading (where relevant).

Factualise Your Beliefs

The best and quickest way to make you beliefs or even limiting beliefs more positive is by factualising those beliefs.

Here’s one way to do it. Each time you struggle or have doubts about a goal, go to Google or even to the nearest library (if you’re more comfortable with those sources of information) and look for the thing that you want to do.

For example: “I want to speak French within 6 months

Now to go Google and type those exact words and you will get about 329,000,000 results showing you the relevant online articles on speaking French in 6 months. Let me say this again… you just found 329,000,000 ways to achieve your goal. Even if you take the first 100 ways, that’s probably more than enough to get your beliefs lifted. More importantly, once you’re there, start looking for facts to support your beliefs or to support what you want to do. While the internet is an amazing place, remember to use facts to back your findings.

In terms of trading, you really don’t have to look further as I have enough recommended materials in the book store (see books here) to help you create wining trading beliefs especially in the area of trading methods and trading psychology. Market Wizards (by Jack D. Schwager) shows a long list of successful traders using a wide range of methods and systems to become successful. Read about these traders and you will eventually build a belief knowing that trading for a living is possible.

Again, factualise your beliefs so that your beliefs won’t ever be shaken again.

Taking Guided Action

lending handIf you believe in something, the chances are you will do something about it and that’s usually through learning or even just by researching about it. But here’s the key difference between a positive belief and a winning belief – if you want to create a winning belief, make sure to take as much as Guided Actions you can.

By guided actions, I mean:

  1. Enrolling in a good trading course
  2. Engaging a trading mentor
  3. Learning from people who have done it before
  4. Making sure to learn from reliable sources only
  5. All of the above.

Because you only take guided actions, it means that you’ll make less painful mistakes. Please don’t get me wrong, I’m not implying that you’ll make fewer mistakes but what I’m saying is that each time you make a mistake, it either it only dampens a little bit your beliefs or it becomes an even stronger (positive) belief.

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As oppose to trying it out yourself and feeling even worse (in terms of your beliefs) after that.

For example, imagine you blown up a trading account just because you wanted to avoid investing in a trading coach or course. If there was a substantial amount of money in the account, do you think you are able to remain 100% confident about your trading and restart a new account the NEXT day? The chances are that you’ll need some time to absorb the pain before you can continue trading, right? Even after absorbing the pain, there will be some residual or debris that might hurt you after you recovered – you might feel less confident and be more cautions about certain things.

And that is what I meant by feeling worse. Hence, in order to avoid that, it’s always useful to get it right from the beginning because, more often than not, recovering from a crash can be more costly.

Pushing for Better and Bigger Results

If you know that you have all the above covered, then this is my suggestion – dare to take big actions and do great things because, without big actions, you will not get winning results.

This is important because you need big results to feed you beliefs again. As mentioned earlier, building a winning belief means that you need multiple loops within your belief cycle. Be daring so that you can gain more results but don’t be reckless.

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More importantly, remember that there is No such thing as Failure but only Feedback. A failed action is only considered failed when you decide that is it. It is a decision that you made because no one can undermine your decision and beliefs but yourself.

If that is true, then all results become very useful lessons. That would also imply that you will to go through a steep learning curve very soon because you are already taking bigger and better actions.

Conclusion

If you truly want to build a winning trading belief, then make sure to thoroughly understand the belief cycle and understand where you stand in it. Achieving success in trading is about understanding the road map to success and the belief cycle is one of the many tools that you can utilise as a road map.

Also, I cannot emphasise enough that all the categories within the belief cycle are important when building winning beliefs. Many people have seen the belief cycle but fail to appreciate the power of the tool.

I hope this article will be useful and please feel free to drop me a message or comment at the bottom of this article.

Thank you and have a nice day.  🙂

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