 Thank you for having me. And today my topic's going to be on psychology. We're gonna talk about make your psychology work for you, not against you. As a general rule, I gotta tell you, psychology is right up there with risk control. You know, we're not gonna look really at charts today, but if you don't have your psychology mastered, you're gonna have a real tough time in the markets because basically, if you kind of review your trading, you're gonna find that most of the time when you make errors or get out of trends too soon, you can thank your psychology for that. So we're gonna talk about some ways in which I hope I'll be able to help you kind of counter that a little bit. All right, so let's go ahead and jump in. First quick thing, I just wanna talk a little bit about the risks involved in trading. You know, we always have to talk about this, but without those risks, I always say there's no opportunity so the two really go hand in hand. Just know that you should be trading with risk capital, know how to do risk control, and also, you know, if you've got a lot of money and you wanna run it by your financial advisor, that's probably a good idea to do as well, of course, just to make sure all trades are suitable for you type of thing. All right, we'd love to have you come to our traderscoach.com website. You know, we run a live futures day trading room as well there. We have lots of courses, drop on by, give us a visit, and there's some free information there for you as well. I also have some books available. So if you don't know me or you don't know our company, this is a great place to start. Pick up a book on Amazon and you can kinda learn what we're all about. I've got a book on risk control and all the way up to different forms of technical analysis. But today's topic, we're gonna focus on psychology. And I'm gonna ask you a couple of questions, but before I do, I wanna also give you a free chapter reprint from one of my books on psychology specifically. And so Gene, I think you can put that link for me up in the chat area, that would be great. And if you could do that, that would be super. And you could just click on that link during the presentation and grab a free copy of this reprint. All right, as I said, I think psychology is an extremely important part of trading the financial markets because stress, worry, fear, greed can certainly have an impact on your trading. And if you don't have it in sync, it can actually ruin a perfectly good set of trading rules. So it's really important to adhere to your trading rules and without the proper psychology, it's tough to do it. So this is even kind of an interesting quote from Warren Buffett where he says, you have to be control yourself, you can't let emotions get in the way of your mind. And that's not only for investing, but especially I think for short-term momentum trading because you have to adhere to your stops, you have to have a game plan in place. And basically I'm gonna ask you a couple of questions coming up, but we can certainly, I think all relate to times when we really kind of felt like we were trading against ourselves and not the market, right? How many times have you felt that? Quite a few, I'll bet. All right, so let me ask a question out there and let me figure out how to bring up the chat here so I can actually see your answers. But do you find emotions interfering with your trading? Do you find emotions interfering with your trading? What do you think out there? All right, I'm trying to find the chat area. And Fausto, where is that? When you said that little toolbar all the way to the right, there's like three double lines. Oh, there it is. Okay, right in front of my face there. Okay, but I don't see it. There's like that little toolbar that you have. Oh, there it is. Okay, I was hidden behind on the screen, got it. Thank you very much. No problem. Okay, got it, great. All right, so let's go ahead and start in here again. So have you had trouble pulling the trigger to enter a trade? How about that one? How many times have you wanted to go into a trade but you couldn't pull the trigger? And what stopped you most of the time? What do you think stopped you most of the time? Fear, right? And what were you thinking in your mind? Probably you had a bad experience from a previous trade where you go in and the classic thing I hear from most traders is that, hey, every time I pull the trigger, all right, the trade goes against me right away. And that really upsets people. But honestly, that is trading. Every time we go into the markets, I can guarantee you the market's gonna move against me at certain points but that's why we put our stops at carefully chosen places. So we allow for that. So the market breathing, it's back and forth movement is all normal when we're actually trading the markets but for some people it drives them crazy, all right? So if that's happening to you, all right, chances are, all right, it's very frustrating because it's gonna happen. And so you have to control that. And a lot of that is fear that keeps you from doing that. Once you recognize that that's how markets work, all right, I think you'll have a better handle on controlling that fear. But I think pretty much this is a situation for many, many people out there. All right, now, next one. Have you gotten out of trades too soon because of fear? So here we're in a profitable trade possibly and we pull the trigger and get out. And nine times out of 10, once again, what is it? Fear, right? So how many times can you think when your rules were right and you overrode your rules based on your emotions? Usually fear, especially when you're in this situation, right? How many people have experienced that? That's right, being a knucklehead, exactly, all right? I think we're all knuckleheads at some point. It took me a decade of trading before I got it all together myself. I've been doing this now for what? Three decades now, running traderscoach.com for two. But the first decade was kind of figuring it all out, not only of the trading rules, but the psychology. And when I first started trading, I had no idea, none what psychology would influence my trading. I thought basically, you got the right trading system, you hit that buy button and you were good to go. And then all of a sudden, you know, you start feeling like you're at Las Vegas if you're not careful, okay? If you don't have a trading plan. So you can't do that, all right? You have to control that fear. And fear is a big problem for all of us. And I can tell you, even to this day, when I'm day trading, especially, I can feel there are certain times when I'm in a profitable trade that I wanna take that trade. And so it's an emotion sometimes that stays with us, but you need to learn how to control it, okay? So you're not alone is what I'm trying to tell you. I think no matter how long you trade, you always fight pings of kind of that fear and greed coming in at times, making you wanna do spontaneous things against your better judgment, so to speak. All right, now, how about greed? Do you get into trades because of greed? Do you find yourself getting into trends that are extended already? My belief system personally is I like to get into trades that haven't been trending a long time. I like to get into them more at the beginning rather than the end. And some traders are opposite, okay? We're all opposite at times, but you need to have a formula to make sure whatever way you're doing is an edge for you. And I can tell you, if you're feeling like you're getting into trades because of greed and you're getting in too late and then getting stopped at a loss consistently, then this is something you need to take into consideration. All right, a lot of people that do sector analysis, for example, I used to do a lot of sector analysis. And the problem with sector analysis I always found out was that when I found a good sector, most of the stocks had run up already. And so I'd have to really go down to the lower cap stocks to see if they rotated yet. But that's the problem with sector analysis is sometimes by the time the sector shows green, so to speak, it's too late. They go all run up enough. So you gotta keep that all in mind and see what fits your belief system. All right, let me ask you this question. Do you feel stressed out after trading? Don't worry, I just have a few more questions. I'm not gonna, the whole seminar is not questions, but do you feel straight stressed out after trading? How many feel stressed out? This is probably more of a question, I think, for day traders. I think there's kind of a big psychological difference between day trading and position trading. Why do you think that is? Anybody wanna share why they think that might be? All right, Bill's saying my favorite is have the proper levels drawn out. Don't pull the trigger and then buy when the stock is extended, not being confident in my abilities. All right, well, your honesty, Bill, is very good. All right, so what do you think? Intensity, okay? Difference between day trading and position trading. Intensity, that's one. The feedback comes so much faster. And I'm not talking about the markets moving that fast because they kind of don't. I mean, I sometimes trade a one minute timeframe and it can be boring sometimes because I'm looking for specific setups. So it's not the timeframe that's making it intense as much as the P and L, how fast it comes back at you. And also too, are you trying to make a living at day trading or are you doing it for fun? That's gonna create a different type of psychological barrier at times, all right? If you have to make money at something, that's gonna increase the pressure a lot more than if you're doing it for fun, right? Also too, when you think about day trading, let's say your system wins 60% of the time, but you're really good at capping your losses no more than 2% and usually of those six that win, you're winning a lot, maybe 20, 40, 50, 100% sometimes. But the problem is that you may have two or three losses before 11 o'clock in the morning when you're day trading and if you don't have the proper psychology that can freak you out, all right? So that is the intensity, Bill, I think you mean and certainly the intensity, I think that day traders feel a lot more than position traders. It's always easier to go to bed on an open position than it is to see the position deteriorate in a matter of minutes or an hour or so, okay? It's just a different intensity, just exactly like you said. So that's what makes day trading so hard is that psychology that you need to be able to handle that kind of intensity. That's why you often hear people say start out position trading before going to day trading because if you're not profitable position trading, then when you go ahead and use that same cookie cutter that you're using for position trading into day trading, all right, you should be profitable. And if you're not, it's because the psychology. So my suggestion is when you're transferring over from position to day trading, do it in a smaller position size until you get your feet wet, so to speak and you're used to the intensity of the feedback. All right, thank you. All right, good, that was good, Will. All right, what is the most destructive emotion you feel personally when you're trading? So tell me what you think is the most destructive emotion you feel while you're trading. And try everybody to answer this, okay? And think about it, when you're trading, what gives you the hardest time mostly? Is it fear, is it greed? Revenge, that's a real feeling. What else? Fear, disappointment in myself. Whom? That's pretty common, I would say. All right, greed. Okay, so it bounces around from greed to fear and the feelings associated with that and how we feel about it, all right? But everybody, I think, has that trigger point. I'm gonna call this like a trigger point. And so it's good that you're aware of the trigger point. And when it surfaces in the form of you feel disappointed in yourself, you have to remind yourself at that time that it's not you, okay? And if you get stopped out and you did everything in accordance to your rules, that's not you, okay? And yes, it is frustrating. Just like CG said, it's frustrating, okay? I can't tell you how many times, and it happened today, I was stopped out by just like one or two ticks. I had the right idea, but the wrong stop, okay? And you get stopped out, it's frustrating. Two plus two does not always equal four in the markets. And that's what can be frustrating. This is where though, if you have a set of rules that you follow consistently, then you don't wanna be trading your last trade. You wanna trade your rules based on the consistency that it produces. So kind of try to remind yourself that that's what you're doing even when you have a frustrating day. Now sometimes we make mental errors, okay? Like, you know, you push the buy button when you meant to push the sell button. Okay, those happen. I don't really call those emotional as much as stupidity, okay, but it happens, I've done it, everybody does it. I can tell you when I do that, it hardly never works in my favor. So now I just immediately fix it. So there you have it, okay? All right, so another question I think is kind of fun to explore is, which is more powerful? Fear or greed, anybody without reading the slide, anybody have a feeling on that? Which is more powerful, fear or greed to you? I think probably, you know, it's gonna depend on the person but I'd be interested to see here what most people say, fear. Yeah, I kind of agree. I also think they're kind of merry because like, if you miss a trade or you feel like you have to get in a trade, okay? It's almost like the fear of missing the trade, right? Just like William says, greed is fear, fear is greed. Okay, kind of true, right? Think about it. If you want to, if you're really like, you know, greedy and want to get into that, it's because you're afraid you won't get into it, all right? That kind of thing, okay? So kind of interesting, all right? So let me just read this slide, is greed have an element of fear in it? For example, you fear you will miss the move. Is that greed to get in or fear that you will miss out? Both are kind of intertwined, which I call married, okay? But are they equal in intensity, all right? The goal here is to see fear and greed for what they are. They're both emotions, okay? Be able to spot these emotions in the market and exploit them. So when you get really good at this game, your rules will probably automatically build in areas where they spot fear and greed from others in the market, not yourself, okay? Others in the market, things like pivot points, breakouts, and so forth, okay? So whatever your system says, we're not gonna go into all the systems out there, but think about your rules and maybe if you wanna look at possibly adding something, look to see if there's some type of rule that you can add where you're actually spotting fear and greed in the markets, all right? And once you can spot them, you can exploit them, okay? So emotions create volatility, increase volume, like those elongated price bars at times or even high volume, like it says, fast markets, a lot of momentum in the market, fractals or pivot points representing behavior changes, okay? So all that is available too. Now, some of you may not use that many charts, some of you may use, for example, market flow, price, you may be doing, you know, bid ask, kind of Nasdaq level two or three trading, okay? Fausto does a lot of that, all right? But psychology is still something you have to consider, okay? Because there's fear and greed in all different forms of trading, okay? So now, in order to fix all this, in order to really get a handle on it, you have to kind of ask yourself, where are you now? What are your trigger points for fear and greed? What drives you crazy in the markets? And I want you to write these things down and think about them, expose them, all right? Don't deny them, expose them, cause we all have them, all right? Once you, you can't fix what you don't know you have. So I'm trying to get you to look inwardly here and kind of figure out what your own particular points of emotions that trigger you, okay? So think about that for now, we'll come back to it. All right, now, I also want you to answer these questions. You don't have to text, put it in the text, but just answer these questions as you, you know, as a trader. Do you feel anxiety and stress when you trade? Are you working harder, but still losing in the markets? That's always a fun one, right? Do you feel wound up at the end of the trading day? Does the market feel like a hostile place for you? Sometimes when you want revenge, you know, boy, okay? Markets a little hostile there, right? All right, are you failing to execute your trading signals? Are you consistently searching for a trading system? Are you consistently losing, all right? So you want to kind of ask those questions and you eventually if you answer a number of those yes, mark those down, keep track of what you answered yes to because that's gonna help you feel what your trigger points are and how much your emotions are affecting your trading. Your goal is to obviously successfully trade. That's a no-brainer, right? Work less and make more. Now, in trading the markets, if you have a successful approach, how are you gonna make more and work less? Anybody wanna answer that? Yeah, Bill, that happens. Bill shared a trade he did on BFLY, okay? I'm gonna try to help you guys if you're having troubles with things like that towards the end of this presentation of some action points you can do. All right, so again, I ask the question work less and make more. Okay, let your winners run, beautiful, okay? All right, well, let me just cut to the chase here. If you have a winning system, all you have to do is increase the account size and trade more shares. To increase the account size, that's gonna allow you to trade more shares or contracts depending on the market that you're trading, all right? Because you always wanna trade with good risk control. So, a certain size account will limit you on how many shares you can buy as you can't go all in because you have to use risk control, right? But you certainly, if you have a cookie cutter set of trading rules or system that works, all you have to do is fund it with more money to make more. But let me tell you one thing, what could happen? What could happen as you increase the size of your trading account? Think about psychology, what do you think? More fear of losing, you betcha because the numbers are bigger, right? One of the things that I do is I try to think in terms of percentages. So, when I'm trading, if I'm trading a really big account, all right, and the money's starting to freak me out, think of it in terms of percentage of the account, okay, instead of the dollars. See if that helps you. That was a little trick I played on myself, okay? And it worked, all right? So, yeah, so when you trade more, of course, it's amazing. See how it's all psychology? All right, think about it, all right? If you are using the same system that is consistently successful and you increase it and you lose, I'll betcha 99% of the time, it's because of your emotions. The other 0.001%, so to speak, is probably because you are trading a market that is really one you're not used to trading, you know, a messy market. Market you haven't really tested before, something of that nature. But in any case, that's something to think about, all right? So, you wanna approach the markets calmly and stress-free, okay? If you just had a fight with your better half, okay, and you're storm into the trading room, if you sit down, you're ready to trade, be careful, all right? Because you're gonna be already a little heightened in terms of emotions, okay? So, you'd probably be a good idea to kinda see how you're feeling that day. You don't have to trade every day, all right? Avoid destructional, emotional trading triggers such as fear and grief, discuss that. Learn to trade calmly and confidently, okay? Honestly, all right, that's a big goal. It sounds hokey, but that really is a big goal because if you can sit in front of your computer and this, you know, if you're a true technician, all right, and you're following a set of rules based off technical analysis, you don't need the news on, you don't need the money honey on, you don't need to have the latest, you know, wire wires into your house of what's going on with this stock or that stock, you don't need it, okay? If you're trading, if you're day trading a handful of futures markets, everything you need to know is right in front of you and the price that's on the chart. If you're a pure technician and therefore once you have realized that, you eliminate that distraction, you can even put some music on if you want and basically focus on the setups generated by your trading rules, okay? And that should be a fairly calm and confident way to trade. Makes sense, right? Okay, enjoy life, okay, most of the time, right? All right, so let's go to this one, all right? So again, it comes circles back to, you will not develop what I call the trader's mindset which is you're conquering your thoughts over your emotions, so to speak and be a successful trader unless you master your mind. So I think this is really an important aspect as important as risk control and risk control is really important, okay? But so is psychology and I think a lot of people kind of stumble on this after a while, but it's a hard thing to put your arms around. All right, now I'm gonna talk about three significant factors affecting psychology and if anybody has any questions on any of this as I'm going through it, feel free to type those in, okay? All right, so the first significant factor that can affect your psychology is simple. A visual perception of what's going on, all right? Are we looking at something that's real or not? In other words, is it an illusion we're looking at or is it real? The second one is emotional perception. Are you an optimistic person, pessimistic person? Are you in a bad mood that day? Are you whatever, okay? Good mood that day? All right, how is that feeling going to affect your perception on what you're doing? Third, your environmental perception, both your past and your present is formed of beliefs that you currently take forward into the markets, all right? So I wanna look at these a little more closely. So the first one I wanna take a look at is basically what I call visual perceptions. So when we talk about illusion or reality, what we wanna talk about is what we're seeing. So our minds are capable sometimes of more than we realize. I'm gonna show you a bunch of visual examples that illustrate this and it's gonna illustrate how our minds can conceive and create illusions we may or may not even be aware of. So let's go ahead. This is kind of a fun part of the presentation. So take a look at this illusion, okay? All right, so are the lines straight or curved? Well, they obviously look curved, right? But the answer, of course, you know, is that they're straight. But if you took a ruler and went across, they'd be all straight. Now, the perception right off the bat when you quickly look at it is they curve. So here is our mind creating illusion that we're kind of not even aware of. And if I didn't ask the question, you might not even know. And it's, you know, why is it occurring that? Yeah, color differences, Carol, that's true. But the point is, is that if you're looking at this, they look curved, at least they do to me, all right? But again, when I got the ruler out and measured it, they were straight indeed. How about this one? Look at the negative, stare at the nose of that woman for 20 seconds. Then after 20 seconds, take your eyes away and look at the white part on the right. What do you say? Color image, right? Pretty girl, right? How does that happen? Just does. All right, that's my mind working for me. I don't know how it's doing it, but there's something in the subconscious or the way in which my mind works and our minds work that create that. So we don't always understand why we see things a certain way and the emotions it creates. All right, count the black dots, count the black dots. They all turn white, right? As soon as you look at them. All right, so again, you know, what's going on? We don't know. I'm sure there's some medical doctor that could give me a scientific answer. But for most of us here, the point I'm trying to make certainly is that these examples illustrate how our minds can conceive and create illusions we may not even be aware of. All right, and illusions may be visual or maybe created subconsciously and sometimes by the emotions and we create motions created by these illusions and beliefs, all right? So let's take a look at how this applies to trading. Because this really leads us to ask are you seeing the markets are as they really are? Hmm, interesting. Let's take a look at this chart. What do you see? What's your emotion on that chart? Boring, exciting, what is it? Tell me in the chat area. So does that market generate any significant emotion for you? Boring, right? Flat, all right? Take a look at this one. Is this different? Does this generate any more emotion? Volatility, right? Guess what? They're both the exact same market. The only difference is the one on the right, I expanded the price axis, okay? So as simple as this is, sometimes the way we have our chart set up can create emotions that we may not be aware of by just stretching the chart. I mean, how ridiculous is that, right? Now, of course, logically, if you look at the price and everything like that, okay, it kind of can make sense of it, but the idea is that the initial response triggered by the chart that you zoomed in on like this can create an emotional fear or greed response. So keep that in mind when you're looking at different markets and charts. In other words, if you're following a lot of markets and you look at one and you have it zoomed in and the other one you don't, chances are you're gonna feel more for one than the other, whereas really, maybe you need to make sure you're looking at them with the same amount of magnification, so to speak, okay? That's the point. The other thing too is that there was a study done where if you have your monitors above your eye level, by just a little bit, it'll put you in a more optimistic mood, food for thought. All right, now let's move on to emotional perception, emotional perception. So we discussed visual, now we're gonna go into emotional. All right, everybody, without thinking right down, what animal does the market signify to you? So if the market was an animal, what would it signify and tell me in the chat? Don't think, bull, bull, snake, bull, lion, snake. Snake's always a popular one. And a lion is too. Penguin, that's an interesting one, haven't heard that one before. All right, eagle, okay, that's a good one. All right, so let's think about your answer for a minute. All right, because your answer is gonna tell you a lot about how you feel about the market. It's gonna tell you about your belief about the market. So the bottom line is if your animal that you chose is kind of friendly or you really like it and you're not afraid of it, then that's a fairly healthy feeling you have about the market. Okay, if it is an animal that can hurt you or deceive you and everybody's different because some people will say, well, I picked a snake and I'll say, well, a snake is kind of slithery and it kind of fearful, it can bite you. And they go, well, no, I love a snake. All right, so it depends on your relationship to the animal you picked. All right, so if that relationship is one of respect, admire them or do you fear them? And do you fear they're gonna bite you when you're not ready? That's gonna tell you a lot about how you feel about the markets and it's also gonna influence your trading because if the market is threatening or tricky to you, you will most likely choose an animal that could hurt you or deceive you. If the market is threatening in a hostile place, you will trade from a fearful mindset. The usual outcome of trading from a fearful mindset, producing emotional trading is the outcome from that because you're always being bounced around by the fear of that animal, which is the market. And usually fearful traders exit the market too quickly or cannot pull the trigger, remember that one, at the right time and lose money. However, if the market is a fun and safe place to you, then you will most likely choose an animal that is non-threatening to you, all right? However, there is an extreme on this point too. If you've taken to the extreme, this will lead to a lack of daisical unstructured trading approach leading to poor risk control and eventual loss. So you kinda wanna have an animal or a respect for the market where you respect the market, but at the same time, like the market. And it's also very similar to how some people feel about the ocean, you know, people that love to sail, have respect for the ocean, yet love it because they have so much fun on it. So that's fairly healthy, okay? So it depends, okay? If you're scared to death of the ocean, then every time, you know, a wave comes, you hold your breath and hope the boat won't tip over, right? So these type of things could create emotions and that's what I'm getting at here. All right, so fear is usually the reason most people never leave their comfort zone. That's another thing that people like to talk about is, you know, I like to trade in my comfort zone. Okay, well, that's good, but you also need to get out of your comfort zone at times and try new things. And in the markets, that may mean testing a new approach to make sure it's okay. It's great to get out of your comfort zone, but in trading, when you get out of your comfort zone, you also need to be careful that you test any new approach that you have to make sure it's consistently profitable before implementing it with real money, okay? But the magic is really where it happens when you get out of your comfort zone. So think about that. It's okay to leave the comfort zone, just do it in a smart way. All right, I love this saying, fear, false evidence appearing real, okay? Fear is relative to each and every one of us. What may scare you, may not scare me and vice versa. All right, if it's real or if it's false, both create emotions, okay? Think about people that are claustrophobic, okay? They're in a confined area. It might scare the hell out of one person, but for somebody else it doesn't. So we all have a different relationship to fear. And I think the thing to do is try to realize if the fear that you feel, is it real or did you create it? Is it unreal? Is it based off your emotions? So think about that because emotions can cause fear. So you wanna try to separate real versus fake, I guess, for a better word, okay, or false. All right, so fear, it's an illusion kind of of what we feel is threatening, okay? So it's a response. All right, so how do you control fear? How do you stop it? Think about a couple of professions throughout the life of humankind, so to speak. You got the samurai warrior, you got the combat fighter pilots, you got the race car drivers, and then you got us, the traders, okay? How do you think each one of those, think of a common thread between those and how they conquered their fear or if they didn't conquer it, they controlled it? How do you think they do that? And please use the chat, I'd be interested to see what people say. So how do you think they controlled fear? Move toward it, okay? Practice, face it. All of those are not wrong, okay? In fact, those pretty much sum it up, okay? Focusing on the reality of the task at hand rather than the emotions. So if you think about the samurai warrior, the combat fighter pilots, the race car drivers and the traders. Let's talk about race car drivers, combat fighter pilots and samurai first. What do they do? They practice, practice, practice, practice, practice, practice, okay? Samurai warrior, training, training, training. Combat fighter pilots, training, training, training. Race car drivers, train, train, train. There's all simulators and all three of those things. Guess what? Traders, practice, practice, practice. We have simulators too. So my point here is that every stressful thing out there, every career that's stressful, all right, requires practice in order to get over that stress because the more you do something, the better you get at it, the more confidence and more use to it. So with traders, just like in, look at regular pilots that fly commercial airplanes. They spend countless hours in simulators. You as a trader should too when you're testing your system. Think about if you just said, okay, I'm gonna try this and run into the markets with real money and get killed. Boy, you may never come back, okay? You may never want to come back. But if you practiced in the simulator, refined your trading rules, practice again and spend some time doing that to a point where you have a winning system in a safe environment, then you're ready to go into the markets and trade with real money. Now, if you go into the markets and trade with real money and fail, then chances are you didn't trade your rules and probably psychology is the issue. Or you didn't test your system long enough in enough markets and that can be easily identified very quickly. So the idea is before you go into the markets with real money, I suggest you have a proven trading approach that you personally tested, not anybody else, you. And once you're comfortable and can trade that without having the rules written down but all on your head, so to speak, go into the markets and see how you do on a small contract basis. Keep it small so the money doesn't create emotions and see how you do, all right? That's how you build your confidence, okay? So this is step one in really learning how to control your fear, all right? Little talk about beliefs and thoughts, all right? And their relationships. So I'm just gonna run through this, but think about this, this is kind of interesting. Thoughts and ideas, thoughts, subconscious and conscious that go through our mind but none have, but none of them have any power except those that are energized by emotions. So I want you to think about how many thoughts that come into your mind during the day. Hundreds, thousands, right? We're always thinking stuff, right? All right? But most of them, we don't give it a second notice but there's some that we energize and for whatever reason they may have meaning for us so we apply energy to them and therefore they become part of our belief system. So a belief is an energized thought and that you make real or accept is true. Unfortunately, some beliefs may not be based on the current reality, all right? So did you create this belief off a thought that was misaligned or one that was sound based off reality? Attitudes, beliefs create attitudes and can influence our actions and reactions. Behaviors, the result of beliefs, thoughts and attitudes set into action. Emotions that are attached to our thoughts and thus ultimately creates behavior. Okay, so what does this have to do with trading? So when you create a trading system, you're gonna take a look at things out there and you are gonna gravitate towards the things that make sense to you based on your current belief system. Are you a counter trend trader? Do you like to go with the herd or against the herd? All this is part of your belief system and so when you create this type of situation you then take your current belief system, put them into trading rules and see if it's profitable and then if it's not, you have to make adjustments. This is what we do in our coaching programs, okay? So that's what it's all about and some beliefs you're gonna find you have don't work in the markets, then you change it and tweak it and when things don't work you're going to remove those because they don't work. All right, so as a trader, another interesting thing to think about is how much emotion do you attach to losing or winning? Let me ask a question. When you trade the markets emotionally, which has more of an impact, a leftover impact, a losing trader or a winning trader? We're almost done here, so just bear with me here a little longer. You guys are great. Yeah, losing trades, right? I want you to all try to do something for me. Instead of attaching emotions to losing trades, why don't you try attaching more emotions to the winning ones? Because if you energize the losing trades, you're gonna be stuck in an endless loop. Try energizing the winning trades. Feel like a winner versus a loser, okay? Try that. Play a game on yourself for the next 30 days, try that. And when you have a losing trade, see if you did anything wrong. If you didn't, forget it. Don't worry at the end of the quarter and the end of three months, whenever you tally up your wins and losses, you can go over to see how you're doing losers versus winners. But forget the losing trades. Learn from them and forget them. Focus on the winners, that's right. That doesn't mean, you know, go around the house after you've had a good day and go, I'm bad, I'm bad. You know, you don't have to do that. But the point is when you have a winning trade, acknowledge it, energize it, all right? Your core beliefs, all right? About yourself. Do you perceive yourself as a winner or a loser? These are core beliefs. Now this has nothing to do with trading right now, okay? This is inside when you're sitting by yourself. How do you feel about yourself? You perceive yourself as a winner or loser. How do you feel about money, good or bad? About trading, is it even possible? Have you ever known a profitable trader? Is it possible? How about success? Do you deserve it? This is interesting to do because if you have a bad belief about money or yourself, about trading, then you need to get to the bottom of that before you really start putting some serious money in the markets. Because if you have been testing your approach, then you should see trading as possible. If you have a bad relationship to money, like what would be a good example? Let's just say you grew up in a house or some household where your parents said, anybody that's rich is bad, okay? Probably you're not gonna have the best feeling about earning money, earning lots of money, right? So you need to change that. So all these things are things that you need to work on before you will allow yourself maybe subconsciously to be a winner. Think about that, okay? All right, last topic, environment here. Let's go over this real quick here. I only got a couple of minutes left. So your environment will impact your belief system. Think about your past and how that could influence your beliefs, okay? For example, again, I'm gonna go back to the old growing up with the mom and dad. Some parents, back in the early period, 70s, 60s, if you didn't have a normal job, being an entrepreneur was not that cool at that time. So if you didn't have a normal job, it didn't count. So how do you think that's gonna influence being a entrepreneur trading the markets? You know what I'm saying? Okay, that's gonna affect you because right away you're not gonna feel comfortable. Think about how your present, think about your present current situation and how that influences your beliefs, okay, your current environment. And we all have this unique maze, okay? None of us are perfect, all of us come with baggage, all of us have different kinds of baggage. The thing is you want to get to know your baggage because you can't fix your baggage or carry your baggage until you understand what your baggage is, okay? So come to grips with it and work on it. All right, so a couple of fun things here. All right, taking now all the stuff we talked about into account. I ask you, is the glass half full or half empty? Is this a visual illusion or a belief illusion? Are you optimistic or pessimistic? Hmm, okay. You know, the glass could be slanted, makes it look maybe not half as full or maybe it is. Maybe it looks more full to you. Or maybe the glass could be perfect and I'd still feel it's half empty or half full depending on whether you're an optimistic pessimistic person, okay? So it's a belief illusion, exactly, Terry, exactly. All right, so let's wrap it up here, okay? So our minds are capable of more than we realize. Your mind is creating illusions at times possibly you may not be aware of. Illusions may be visual or maybe created subconsciously by emotions created by beliefs. Are your emotions such as fear distorting what is real and how you interpret and act in the markets? How your mind sees and interprets the markets may be affecting your trading and that may be happening without you even being aware of it. All right, so do you think it is important to learn the skill to control your emotions and identify distorted illusions before they sabotage your trading? You betcha, right? So this is a really important area and it's very personal to each one of us, but don't run from it, okay? Because if you can get to the bottom of it and turn this around to where you're creating a effective trader's mindset, it can make all the difference in your trading, all right? Let me just see if there's any last bit of questions and here is this free report. If you're interested, okay, Jean's got the link up there for you already, okay? So, boy, Jean, you're squared away. You already got it up there. Good job, all right? So a couple of little things before we wrap it up. Winners are not people who never fail, but people who never quit. Love that saying, okay? Love that saying, all right? And then finally, if this interests you and you wanna have a little bit more of an in-depth study, we also have an online course for 99 bucks that I think would do you real good. So you can check that out as well and Jean will put the link up for that and I think, did you do that yet? Not yet, okay, she'll do that in a minute. So, oh yeah, she did it, okay, it's up there, all right? So you can check out our online course and it's very thorough and I think it will guide you through the steps to getting to the bottom of your psychology. So I wanna thank everybody for attending. Fausto, thank you so much for having me. If there's any last minute questions, I'll be glad to ask, but I think that's a wrap.