Holy Grail of Trading
Hey guys, Thiru Nagappan here, founder of Master the Markets, Elite Traders Conference and The Traders Open Day.
Most of you Traders would have heard of this before – the holy grail of trading. I even used to hear about that and I used to chase strategy after strategy. I’m sure some of you would have done that as well, only to find out after a while of chasing strategies, you start to realise maybe that’s not it after all, that’s not the Holy Grail.
The Holy Grail is actually based on a few components. In my opinion it’s based first on the four personalities. What are these four personalities? Before you guys start freaking out and thinking I’m talking about multiple personalities, let me explain and it will totally make sense. It’s absolutely logical.
The first of the four personalities we’re going to talk about is the physical personality. This is basically your body and your senses.
The second one is basically the emotional personality where all the emotions come in. Especially in trading you’re all familiar with the two biggest emotions of them all are fear and greed. Of course there are so many emotions: fear, hatred, anxiety, jealousy and the positive ones like love, happiness, joy, excitement.
The third one is what we call the intellectual personality where all our ideas of logic and reasoning all come about and also the question of right and wrong. These all come under the intellectual personality.
Most of you can relate to this because the physical personality actually relates to our senses: how we smell, hear, taste, touch and see things. It is through the five senses that we interact with the world and those five senses then activate the other personalities. They trigger emotions and the intellect where instead of doing something emotionally or irrationally, the intellect can help us make the right chose or decision before we do something.
Most of you can relate to all of this in trading because in trading when we see a trade happen and when it’s not really going in our favour, when it actually retraces against us and moves toward a stop loss immediately through the senses you’re perceiving that and it triggers emotions within you and affects the emotional personality. Fear comes in where you start thinking ‘I don’t want to take another loss, it just adds to the loss cluster. I just want to win and override those losses.’ When that happens, emotions such as fear become unstable and we start to do things that are not what we want to do. But then the intellectual starts to kick in and it starts saying ‘That’s not right, I actually want to do things according to the plan because the plan is what gives me my edge.’ Traders, when you master these three personalities; physical, emotional and intellectual, it’s then that you awaken the fourth deepest personality that is within you which then helps you trade in the zone. Trading in the zone is when you get to the level of unconscious competence.
The fourth personality is the spiritual personality. Traders, when you align these three personalities together you awaken the spiritual personality which is your inner genius, your intuitive response, where you’re in the market and you can just see the infinite route of possibilities that the price can take because you’ve mastered the other three over time. One of the best books written about this is by Mark Douglas and the book is called Trading in the Zone.
That’s a look at the four personalities. I believe that from my own experience on the journey of a trader it is constantly getting ourselves better in each of these personalities that gets you closer towards the Holy Grail of trading. In terms of emotions, keep on working on the mind. In terms of physical, do some exercise every single day which increases your awareness and helps with your other personalities. Finally your intellect, keep increasing your trading knowledge. Have a good pre-trading routine, a post-trading routine and that will help you align those three personalities and awaken the fourth deepest layer which is the intuitive layer, your inner genius, your spiritual personality.
Once you’ve mastered the four personalities, find your trading style and a trading strategy that fits your personality and keep with it. Practise it 10,000 times and it will then become your nature and that will help you get into the zone which then is in line with your deepest layer, your spiritual personality. Once you’ve done all this, keep on building, testing and measuring to find your trading style. Practise it 10,000 times and then align the three personalities then to awaken your deepest layer, your spiritual personality.
I believe that has been very useful to you all. Do practise this and any queries or comments, please email us. Until the next time, as we always say, stay disciplined, follow your trading plan and keep Trading like a Master.
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