2+200 Thinking in a Trading Situation

Succeeding and staying successful in this path requires a change in beliefs and perspective on life. Beliefs begin to form in us from birth, and with their help, we have been able to live under “frameworks” and “specific rules,” achieving successes. Anyone you consider successful in this world (university professors, entrepreneurs, lawyers, doctors, engineers, traders, etc.) has been able to succeed socially and hold a good place in society due to personal beliefs, outlook on life, perseverance, intelligence, and favorable environmental conditions. Now I ask you: if these successful individuals entered this market, would they necessarily repeat their success? Mark Douglas answers this question as follows: “Most bankrupt traders are among the brightest and most distinguished individuals in society.” The issue is that our brain has accompanied us in social life and during challenges on the path to success like a close friend; however, in trading, due to the high number of decisions and quick results, conditions are different, and one cannot trust the suggestions and experiences derived from past social behavior. Now in this new challenge between us and mental frameworks, our mind stands right in front of us. You have probably recently become familiar with this profession or are halfway through. Please answer these questions: 1- Despite the increasing emergence of theories and diverse analytical styles, many of which are publicly available, why do you and a large percentage of active individuals still fail? 2- What do you consider the guarantee of your success as a trader? 3- In which analytical style do you think you can succeed? 4- Why, when you decide to operate within a trading framework, can you not act according to it at critical moments? 5- If you feel confused and think there is a missing mental link in your trading path, in what areas have you searched for it? I asked myself these questions in the darkest times and places on the trading path! If you reach the point of asking yourself such questions, it means you have attained a level of self-awareness and realized that a fundamental change in your beliefs is necessary. The answers to these questions can define the boundary between your previous beliefs and the reality of the market. The approach of this book is not to impose any predetermined answers but to challenge your mind and illuminate the path so you can forge answers that are truly yours. It is important to know that this book’s content is the intellectual output of two traders. We, two longtime friends who chose the trading path, have experienced the market’s ups and downs together. After overcoming challenges and developing our own styles and methods, we decided to teach our mindset and approach to others. Through semi-private workshops, we found a practical way to convey concepts and teach trading skills. After three and a half years and interacting with 200 students across 30 groups, we were ready to present the materials as a comprehensive book. Due to the nature of financial markets and the need for supplementary education, reading the book alone cannot fulfill the desired transfer of knowledge. Because of the limits of printed paper size and the difficulty of flipping through pages—since some explanations continue over several pages—it was decided to cover this educational gap by scanning QR codes in respective parts of the book via smartphones or computers to use explanations and visuals more practically. During teaching, each of the 200 students, with unique personalities and perspectives, encountered mental blind spots and deadlocks that motivated us to seek efficient solutions. Imagine, for each of those 200 individuals, challenges on one or several topics might emerge requiring us to approach issues using their mental rules.