Developing a
Probabilistic Trader Mind
By Sara
Who? What? When? Why? and How?
For who is this webinar?
What will we talk about?
How long gonna last?
Why am I doing it?
How should you attend?
What will we talk about?
●
Mindset shifts needed to become a profitable trader and to
sustain profitability long term;
●
Mind interference that doesn’t let you execute flawlessly
●
How to develop a patient and disciplined mind
●
The 3 Emotional Skills for emotional mastery
●
Practical Exercise
We are not build to be traders.
Probabilistic Thinking
Survival Instinct
Mindset Shifts Needed to a Become
Profitable Trader
Human Nature Mindset Shifts
1. Embracing uncertainty
2. Losses will be there forever
3. Short-term results don’t serve as feedback
4. From tunnel vision to big picture perspective
5. You’re in the seat of power, not the market
6. From predictability to anticipation
It's not external control that will give you
confidence but the ability to thrive under
uncertainty - internal control!
Mindset Shifts Needed to Sustain
Consistent Profitability
1. You can’t control emotion
but your response to them
Smooth Equity Curve
2. Flexibility
Failure To Adapt
Fast To Adapt
3. The best performance aligns
with your strengths
A great trader isn’t measured by his
profitability but for how long he can
keep it.
4. This is a constant ride, there’s
no patamar or limit
“I’m already profitable, there’s nothing more to improve”.
“I’m consistently profitable already. So how can I step up my game?
How can I improve my edge’s win rate and risk to reward? How can I
maximize winners? How can I improve my processes?”
5. Mental edge preservation VS
Capital preservation
●
Shorter trading sessions or with several breaks
●
Timeframes that suit your personality
●
Markets that suit your strengths
●
Strategy to when Not to trade - market conditions
●
Strategy to when to step back
●
When do I lose my mental edge?
●
Strategy to when to press
Equity Curve - Moving Average Tip
Cap Preservation
Mode
Cap Preservation
Mode
Cap Preservation
Mode
What makes it harder to achieve these
mindset shifts?
Trader → Interference → Mindset Shifts → Full Potential
On top of all these belief system shifts, there’s
our whole emotional programming - our own
beliefs acquired by education and experiences
that go against our trading progress.
The most dangerous limiting beliefs for trading performance:
●
Unworthiness: "I'm not good enough"→ perfectionism
●
Powerlessness: "I cannot control myself"
●
Non-deserving: "I don't deserve to earn easy money"
●
Invisible: "If I make x sum of money, I'll be someone"
Lack of
self-esteem,
confidence
→ Fear
amplification
Fear
Impulsivity
VS
Hesitation
Confidence
Discipline
Patience
How To Build Trading Confidence?
Confidence in
strategy
Confidence in ability
to perform
Confidence in strategy
Technical Skill:
1. Knowledge of edge
2. Flexibility in different market conditions
3. Confidence in processes and feedback
systems
Confidence in the trader
3 Emotional Skills:
1. Awareness
2. Emotional Regulation - visceral response
3. Mindfulness - detachment from mind narrative curiosity instead of fear
Discover Your Inner Motivators
1. Intrinsic motivation comes from personal growth and a
sense of purpose;
2. Extrinsic motivation revolves around external rewards like
money or recognition.
Self-Reflection Questionnaire:
1.
What do you like about yourself?
2.
What are your biggest strengths?
3.
What are you proud of in your life?
4.
What do you get complimented on?
5.
What strengths have you learned to hide?
6.
What aspect of trading do you find most fulfilling?
7.
What parts of trading provide you a sense of purpose?
8.
What strengths or abilities shine through your worst times?
9.
When have you felt most energized? What were you doing?
10.
What challenges have you overcome? What strengths helped you along the way?
11.
What do your closest ones think are your biggest strengths?
12.
How does trading fit into my broader life goals?
Practical Exercise:
Disrupting mental blocks
1. What are your most recurrent performance flaws?
2. What’s the self-talk, emotions, triggers and amplifiers that accompany those
mistakes?
3. What are the limiting-beliefs/mental blocks behind them?
4. What’s the evidence sustaining that belief?
5. What are 3 questions that challenge the evidence?
6. What’s the updated belief that’ll out you closer to your goals?
Practical Example
Performance flaw: Impulsive early entries, overtrading
Triggers: Yesterday’s losses memory
Inner-Dialog: “I need to enter this trade”; “I need to find a setup
today that covers yesterday’s losses”; “Please, go in my direction”
Emotions: Nervousness, impatience, anxiety, pressure
Amplifiers: No technical preparation
Limiting-Belief: I need to make money and get myself out of this
situation. I’ll only be enough and happy once I make money.
Pattern:
Why? → Limiting-Belief
Trigger → Amplifier → Self-talk ,
Emotions → Visceral Response → Behavior
I’ll only be enough and happy once I make money → Yesterday’s losses
memory → No technical preparation → I need to win, Pressure, Impatience →
Increased heart rate, sweaty palms → Early entry, overtrade
Self-Limiting Belief: "I'll only be enough and happy
once I make money."
Evidence 1: "Nobody notices me"
Evidence 2: "I need money to prove my family wrong"
Evidence 3: "My wife thinks I'm a failure"
Evidence 4: "I didn't achieve anything of importance yet in my life"
Evidence 1: "Nobody notices me"
Q1: Is it possible that people may notice and appreciate qualities or
aspects of your personality other than your financial success?
Q2: Have you received recognition or appreciation from others for
things unrelated to money in the past?
Q3: Can you think of ways to make yourself more noticeable and
respected for your character, skills, or talents, even if you're not
wealthy?
Evidence 2: "I need money to prove my family wrong"
Q1: Is your family's perception of your worth solely tied to your financial
success?
Q2: Have you had open and honest conversations with your family about
your goals, dreams, and values, or is the belief that they see you as a
failure based on assumptions?
Q3: Can you find examples of family members or friends who support
and appreciate you for who you are, regardless of your financial
achievements?
Evidence 3: "My wife thinks I'm a failure"
Q1: Have you talked openly with your wife about your feelings and
concerns regarding your financial situation, or are you assuming her
thoughts about you?
Q2: Is it possible that your wife values other qualities in you, such as
your love, partnership, and support, and that she doesn't see you as a
failure?
Q3: Can you find moments in your relationship with your wife that
demonstrate her love and appreciation for you, even if financial
success has been challenging?
Evidence 4: "I didn't achieve anything of importance yet in my life"
Q1: How do you define "importance" in life, and can you consider other
personal achievements and growth that may not be related to wealth but
are equally significant?
Q2: Have you set smaller, achievable goals in the past that brought a
sense of accomplishment or happiness?
Q3: Can you identify any areas in your life where you've made a positive
impact on others or on yourself, aside from financial success?
Limiting-Belief
I need to make money and get myself out
of this situation. I’ll only be enough and
happy once I make money.
Updated Belief
I have a balanced life with activities I enjoy. I want
to make money but I know I need to embrace the
process. I surrender to the process and what
comes as a result is a consequence of my efforts.
My inner motivators for trading are learning,
self-improvement and emotional mastery.
Q&A
➢
E-mail: theperceptivetrader@gmail.com
➢
Website: https://www.saraperformancetrading.com/
➢
The Peak Performance Trading Program: 1-1 coaching
https://www.saraperformancetrading.com/coaching