Have you ever noticed that some people often espouse certain “values” that they hold dear?  In fact they will set themselves apart from others by intimating that they are somehow better because they have different values.  This seems especially true of politicians who pontificate about how their family values inform their behavioral decisions while engaging in cheating on a spouse, or violating ethical rules and/or criminal laws.  Now, my intention is not to vilify our politicians even if it is pretty easy; but to show how pervasive this notion of not walking your talk is across the landscape.   Take any demographic or group of people.  As you look closer into the difference between what they say they are going to do and what they actually follow-up on are often quite different.  This is true for everybody, this writer included.   Part of the issue lies in how we discuss this notion.  When someone says that they have values, they often mean that they have a personal standard of behavior that has relative worth, merit or importance as in “I value being in good health.  Or, I value my friendships.”  Then, when an opportunity to follow-through with this value comes up like eating a healthy meal, exercising, or being dependable when a friend asks to be picked up in the middle of the night; the person fades into the woodwork and is nowhere to be found.  They fail to do what they noisily said they would.  In other words, in that instance they balked and became hypocrites.   What was actually happening when they pledged allegiance to the value is that they were talking about a “principle.”  This distinction is lost to most folks.

A principle is a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.  It is what you hold as a standard to aspire to.  On the other hand, a value is what and how you are living.  If you “value” family relationships you are exhibiting behaviors that truly support healthy, nurturing, honest and compassionate connections with all of your family members.  If you “value” good health you are regularly exercising, eating healthily and getting proper rest.  Now, if your values are incongruent with your behavior, that doesn’t mean it’s time to curl up in a depressed heap; it just means that you want to be more specific in clarifying your values in order to use those principles that you thought were values as aspirational goals and objectives.  Once you make this distinction you can orient the principle so that you have a set of tasks, intentions and objectives to take the newly identified principle and in time turn it into a value that you are living.  In this way you are centering your actions on endearing and enduring principles that function as guidelines for decisions and choices in your trading and in your life.

Principle centered trading is setting your process on a course of rule based protocols, routines and documentation that is guided by a higher standard beginning with your macro purpose.  When your purpose is connected to the what-matters-most in your life this not only sets the groundwork for connecting the energy of what you are most passionate about to the mechanics of trade rule follow-through and commitment keeping, it is also articulating and defining your standards of performance as guided by your principles.  This helps you in real time when you come to that fork-in-the-road and you choose the direction in which to proceed.  You can choose to go to the left, violate rules, break promises, go off the cliff to crash and burn; or you can choose to go to the right while keeping your highest and best trader at the platform as you trade in your highest and best interests.

Principle centered trading also involves becoming self-aware in order to increase your overall awareness of internal unconscious thoughts, limiting beliefs, and behaviors that are below the radar.   In fact, most (well over 90%) of what goes on in your brain/mind is out of your awareness; and you can’t change what you can’t face and you can’t face what you don’t know.  Becoming self-aware does not mean self-absorbed as that is an ego function which supports arrogance and hubris.  Self-aware simply means that you are monitoring what you are telling yourself; that is, your internal stories and mythology that in many cases are far from reality.  Additionally, it is aiming to reframe, redefine and restructure negative self-talk that conjures erratic and negative emotions which in turn drive behaviors that are not supportive to follow-through and commitment keeping.

So, the next time that you are loosely talking about your values you may want to stop and consider whether these are truly values that you are living or principles to which you aspire.  Remember, this distinction can be proactively used to support your purpose, goals and objectives in a more focused, organized and congruent way.  How you perceive; that is, the “process” of seeing is just as and in some ways more important than the “what” you see.  Critical thinking that is self-challenging, introspective and self-reflective while guided by high principle centered trading will support the building of a mindset which optimizes resources and brings them to bear on manifesting your purpose and achieving your goals.

He felt really good about this trade.  John’s plan recognized a demand zone on the 60 minute NQ E-mini chart and the price action had pulled back as it was about to enter the DZ.  The 5 minute chart is where he had placed a bracketed order to go long in the zone with a stop just below the demand zone when it was filled.  It was a good high-probability trade as borne out by the Odds Enhancer calculations.  The trade got filled and stalled for a moment before the price action began to drop.  As it got close to his stop, John took a deep breath and thought, “It looks like it’s going to take me out, but that’s OK cause my stop is working.”  Now, the interesting part happened when the price action took a turn and began to move up.  As soon as it went into the green, John became fearful and worried.  In fact, he panicked as he thought, “Wow, I’d better grab this profit because I need all the profits I can get before it might go back down and take me out for another loss.”  The urge to take the small profit was too much for him to manage.  John prematurely exited the trade and didn’t allow his winner to run.  He did not follow his plan.  He second guessed it.  Immediately after he closed the trade, the price action rose until it hit what would have been his target.  When that happened he felt depressed and angry because he had “caved” again to anxiety and fear of letting the “green” run.  What he told himself about having to take that small profit distorted his judgment and distracted his focus.  He had done what he had specifically told himself he wouldn’t do… again.

Prematurely exiting a trade and not allowing a winner to run is a common problem.  Another way to say it is that you didn’t follow your plan and as you may know, allowing your plan to play out is crucial to gaining information on whether the plan is an effective one.  It is for this reason and for several others as well, that what you’ll want to note it in your trade log and your thought journal.  Documenting the trade data helps you to uncover the mechanical triggers that are prompting the exit.  For example, in John’s case, it wasn’t the price action’s threat of hitting his stop; which is an issue for many who move stops in an effort to avoid the loss; it was the movement of the price going in his favor that initiated the anxiety and fear that the profit would be lost if the price action reversed and then hit the stop loss.  Gaining the mechanical specifics will take you closer to getting a handle on a solution.  Additionally, you want to document your internal data; that is, what you are telling yourself and feeling as you are about to take yourself out of the trade.  In John’s case, he said, ““Wow, I’d better grab this profit because I need all the profits I can get before it might go back down and take me out for another loss..”  This thought is what prompted the fear and worry.  In other words, what John told himself was masking a deeper limiting belief that a small profit meant that he was a “good” trader and that he must hang on to that at all costs…even the cost of hitting his target.

Finding out the deeper core issues is one of the important byproducts of documenting your internal data.  You can’t confront this type of issue if you aren’t aware of what is motivating the behavior.  See, the thought of “I’ve got to keep this profit” is often connected to an underlying belief that profits, however small, will validate you as a trader despite the fact that it is keeping you from an even larger profit and a better result.  This underlying belief could be provoked by another deeper limiting belief that your profits are limited and you must take them whenever you can.  This is also a belief in scarcity. So, the fear and worry continues to get triggered as your unconscious conversations around what this small profit means to you are circulating.  As you unearth more and more of the limiting beliefs that are prompting negative emotions which drive bad behaviors, you are putting yourself in a position to be proactive in dealing with them and pre-emptive in decreasing them as a factor in your behavior.

Now that you have pulled back the layers of the problematic onion by using your journal/log process it’s time for you to address the negative thought stream head on.  Interrupt the pattern once you recognize it’s happening by stopping the process in its tracks.  As soon as you feel the tension, anxiety, butterfly stomach, etc.; stop and take several deep breaths.  Count to ten or higher.  Change your position by standing up or doing something different such as a brief physical exercise.  This will take you out of the pattern, bring you back to the present moment and help you to focus on what matters most in the trade.  Then ask yourself, “What must I be telling myself or believing to feel this tension, anxiety, butterfly stomach?  What is really happening to the trade?  What is in the interests of my A-Game right now?”  At that point you are in a position of strength.  You have interrupted the pattern, identified what is driving the desire to exit the trade, focused your attention on what matters most, and you can then do the right thing.  This is not a panacea, you must practice this procedure.  It’s like any important behavior you want to install as a habit; you must develop the capacity for strength and endurance by doing it repeatedly and training yourself.  After doing this for 60 to 90 days you will have installed a new powerful, positive habit

It’s imperative that you work on bringing and keeping your A-Game at your trading platform.  This begins with becoming aware of what will take you off course and documenting the mechanical and internal data.  When you have identified the underlying issues, then become proactive and pre-emptive in dealing with them by changing the negative thinking and interrupting the patterns one trade at time. Letting your winners run is an important component of being consistently successful and getting the results that you want

A chill went through her body.  Mary couldn’t understand what was happening and waves of frustration, confusion and loathing rippled through her as she struggled to make sense of why the stock she was trading had plummeted.  Daily Briefings gave a good report on the stock and as well a CNBC analyst was bullish on the stock.   Actually the stock did go up, just before it reversed; and she was still in the trade.  She reviewed her indicators, the CCI, MACD and RSI along with the Keltner told her the same story…at least so she thought.  Of course she still had 3 moving averages on her charts as well.  What was wrong?  And, why did she continue to have drawdowns over and over.  She had conferred with her trader friends and they told her that it was a good trade.  They must not know what they are talking about.  Sure, she had moved her stop, but just the other day didn’t she get an internet program that was selling a system that said she didn’t need stops any longer.  And, of course there were the kids who kept coming into her office with request for one thing or another even though she had told them that she was busy.  Additionally, her husband, who normally was supportive; still kept asking her to help him by running some errands.  It appeared that he still didn’t understand that she needed peace and quiet to take care of her trading.  And then there’s the cat that comes in after one of the kids left the door open and he constantly jumps up on her desk causing a commotion each time.  If only things would work the way they are supposed to!  Mary was stuck in a downward spiral and was looking everywhere but where it counts…inside.

Mary, unfortunately, is not alone in her misguided belief that most if not all of her issues are caused by someone or something outside of herself.  Firstly, she doesn’t realize that she is exactly where she should be.  That means that based upon the conditions and circumstances present in her trading and in her life, that is, she relied on outside variables like internet programs, news, and friends; she communicated with her husband and children, or not, just enough that they misunderstand her needs while trading; and she has disregarded important facts within her trading environment in order to be confused and frustrated.  In other words she is exactly where she should be and getting exactly the results that she should get based upon the conditions and circumstances present in her trading and her life.  One of the laws of The Universe is based upon cause and effect.  If you set a cause in motion there will be a corresponding effect.  For example, if you have tried to lose weight you might think that you “should” weigh something different from your current weight.  But, how could you?  You ate just the right amount of food (junk or otherwise), you vegged out on the couch just the right amount of times, and you exercised (or not) just the right amount of times to be exactly the weight that you are…you should be that weight.  Why, because you are.  Any thought that you “should” be different is a rejection of reality and a failure to accept what is fact.  Mary has failed to accept reality as she blames her conditions and circumstances on outside forces.  She also has failed to take personal accountability for her results, and she has seduced herself into thinking that they are not her fault.

The dictionary defines accountable as being held to account for an outcome.  Additionally, if you were to look up responsible, it would define this term similarly.  I take a different view.  Allow me to explain.  To be responsible is to accept or have someone anoint you as the person who “can” respond to an event, issue or situation.  On the other hand, to be accountable is to be held to actively “account” for the results that have transpired.  I can be responsible for a trade going sour.  But, that does not mean that I will necessarily do something to ensure that I’ll use the feedback to adjust and do better next time.  Conversely, if I am held “accountable” for these results then I am more likely to be emotionally and cognitively invested in that outcome so that I will adjust my behavior accordingly to achieve the desired results.  In my mind, one is more passive in nature – responsible; and the other is more active in nature – accountable.  So, what does that means for your trading?  Everything!

You are responsible for your trades.  If you execute it, then you own it; but that doesn’t mean that you will “accept” responsibility or hold yourself accountable for the results.  Many traders blame everything and anyone for their results.  These traders also continually seek outside themselves for the answers to their issues and shortcomings.  What’s more is that they crowd their charts with so many indicators and tools that the price action can barely be seen.  These are symptoms of a lack of alignment and integrity in trading.  It is also indicative of a failed approach to achieving long term objectives.

In order to be consistently successful you must be self-aware while in the trade; that means you are focused with intention on what matters most in the trade.  It means that you are in the moment, for the moment, fully available and in the now of the trade.  Self-aware also means that you are tracking your thoughts, emotions and behaviors because these internal variables are what drive your execution.  It doesn’t matter how much knowledge you have, if your internal data is conflicted, confused and confounded, you are not going to execute according to plan while maintaining your rules.  That requires that you be diligent and vigilant about what is going on both inside of you and outside.  You must be accountable for your thoughts, emotions and behavior at every juncture of the trade.  You must be active in this pursuit if you are to be deliberate and trade by design in a “rule based” protocol.  If you hold yourself accountable you are more prone to identify what is working and what is not working both internally with regard to issues that surface in your trading and with your strategies, set-ups and procedures (protocols).  What’s more, you can’t identify what is working or not working unless you are documenting your mechanical data (everything that has to do with market information) through a Trade Log; and documenting your internal data (thoughts, emotions and behaviors associated with the trade) in your Thought Journal.  This is true accountability.

So, take control of your process first by holding yourself accountable for all of your results.  Remain self-aware in order to weed out and root out negative issues that are caused by limiting beliefs and unruly emotions that lead to conflicted executions and rule violations.  You can’t change what you can’t face and you can’t face what you don’t know.  If you do this you will get closer to your A-Game, which is what you must do if you want to begin to get the results that deep down you know you can and deserve.

When you trade it is of paramount importance to have a macro plan (a business plan) that outlies things like your goals, the markets you will trade and the strategies that you’ll employ as you continue to build your trading skill levels.  As well, you’ll want to have a micro plan for each and every trade outlining for instance your levels, entry decisions, stops and exits.  This planning process cannot be overstated.  It is just as important to have a plan for your physical and fiscal health in retirement.

Fitness, whether you are talking about physical, mental or fiscal is going to involve optimizing resources, a focus on what matters most and willingness to relentlessly follow-through; and that goes double for preparing to retire into your golden years.  Standing on the precipice of senior citizenry is not for wimps.  In fact, if you don’t jump in of your own accord you will be pushed in if you live long enough.  Your senior years can either be the best time of your life, or if you’re unprepared as so many in the US are today, it can be the worse time of your life.  Naturally, as you age your body will begin to lose much of its luster.  Age related illnesses have a way of standing outside the door unannounced.  Aches and pains, arthritis, Parkinson’s, MS, leukemia, Alzheimer’s, dementia, depression and cardio-vascular disease are just a few of the plethora of ailments that plague older folks.  Additionally, income levels plummet and become fixed as rising prices shoot for the moon.  On the contrary it is important more than ever in your life to approach your last few decades on the planet with fierceness and a relentless pursuit of being the best that you have ever been.  Here are some things to consider:

Have a purpose for your life.  Just because you’re older doesn’t mean it’s time to give up.  Identify the legacy that you want to leave for your progeny both fiscal and otherwise. I don’t believe anyone said at the end of their lives, “I wish I had spent more time at the office.”  Your macro purpose is your compelling reason for living in your golden years.  Of course, having a reason that revolves around just being able to go one more year might be what you’re thinking about.  But, I would go further.  As you think about your legacy that you’ll leave behind, you may want to consider part of that legacy being in a denomination that can be used as legal tender.  Also, the well-being of your children and grandchildren may be just the thing to focus on with a little more intensity.  So, making sure that you are exercising and eating in a healthy fashion in order for you to remain active with them can go a long way towards keeping your body and mind healthy.  The point is that you’ll want to connect with what matters most in your life in order to use passion to fuel your everyday enjoyment.

Make a list of what fulfills you.  This could include hobbies, traveling and becoming connected with a competitive team.  Make a schedule for them and keep it.  These will enhance your life.  When you focus your energies on activities that you gain great pleasure from your body releases endorphins that not only help you to feel good, but they also lower stress levels and bolster your immune system.

Have service in your life; that is, a way to give back.  Sit on a non-profit board, volunteer at the local little league or hospital and become a mentor to a youngster.  Research demonstrates that when you give of yourself it not only helps the planet and our community; it is one of the ingredients that greatly increases happiness.  Giving of yourself in service is one of the most precious gifts that you can share.

Become deliberate in fostering deeper relationships with children, grandchildren, family members, friends and neighbors.  This is what life is all about.  We are social beings and the more we are interconnected the more social supports we have and the better able we are to manage stress, support immune functions and live happily and healthily.  Make an agenda for getting involved with local clubs, meet-ups, religious functions and other activities.  Don’t just make time for them; make them one of your priorities.

Now with regard to your money; quiz yourself on questions such as these:

• Where should I be investing my money?
• Am I managing my debt properly?
• What are my options for socially responsible investing?
• I’m retired; how much can I safely spend each year?
• Will my family be provided for in the event of my disability or death?
• Do I have the right kinds and amount of insurance coverage?
• Am I paying hidden fees on investments and other financial products?
• Will I have enough for retirement?

Like anything else, having a plan for your later years is going to place you way ahead of the game.  Having a nest egg is only part of the solution.  You’ll want to manage your wealth and have an income stream that has your money working as hard for you then as you worked to make it.  These are just a few important items to consider as you ponder your transition into senior citizenry; and if you are already there, it is never too late to hone your plan and ensure that you are putting as much in and getting all that you can out of your life.  Just as you are planning your trades, trading your plans and aiming to follow all of your rules and keep all of your commitments to yourself as you trade, you’ll want to approach your retirement with the same level of intensity.  Your A-Game is important to keep working for you at all times, not just in the trade.

Human beings are impulsively driven by greed and the desire to dominate. They will take the easiest way to get and keep what they want. This often has negative and unintended consequences that are frequently destructive. And, humans are not naturally prone to accountability or self-discipline, which is why we need laws, rules, boundaries, and limits in society. Reaching YOUR goal requires self-imposed limits and these limits must be created through personal accountability. You must know what you require in the way of protocols, strategies and rules in order to create effective self-limits or self-control.   It’s very important to identify the weaknesses and the strengths of your execution. After that, new habits and supportive behaviors can be created.

It’s critically important to identify the faulty patterns of thinking that cause behavior inconsistent with your stated objectives. After identifying bad behavior (often the lack of follow-through or violated rule(s), isolate them which might entail making another rule to put greater specificity in your process. The goal is to get into a mindset in order to identify how the behavior reflected foggy thinking and how thoughts and emotions work together to create results—this knowledge helps to get and maintain a focus on the most important elements in the “next” step in order to remain on target, on task and on purpose. Then you can cut losses and position yourself to re-observe the order flow without the emotional noise.

You are not always the same and how you are is based upon what part of you shows up. Also, the environment, biorhythms, discomfort vs. comfort, and recent events that may have shaken your confidence, all have an impact upon who shows up. So, sometimes you are confident and relaxed; sometimes you are agitated and anxious; sometimes you are depressed and fatalistic. Deep-seated irrational beliefs create these emotions. They result in “who is coming to work today” and greatly affect how events are perceived. The ideal is to approach life in an open, alert and focused state, being in balance and resonating with the market system. This means remaining in a constant state of curiosity and observation.

The objective of dealing with emotional interference is not to attempt to eliminate it. Emotions are an inextricable part of who we are as human beings. The point is to learn how to understand more about them so that the negative can be contained and the positive can be harnessed and used as allies to boost the drive to stay on course so behavior and performance are reinforced rather than adversely affected. As you modify both cause and effect, you know where that modification is leading. By knowing your strengths and weaknesses, knowing the state you want to achieve, and knowing you are on the path to getting there, you close the gap between expectations and results. Remember, you can’t change what you can’t face, and you can’t face what you don’t know.