Chapter 2 – Why a New Thinking Methodology W: “Learning how to execute your trades immediately upon your perception of an opportunity” A: Mark is telling us to take the trade every time our set up is triggered without overthinking. A: I’m still working on my execution. More often than not I’m late in entering my trades.

Chapter 2 W Learning how to recognize the skills you need to progress as a trader and then stay focused on the development of those skills, instead of the money, which is merely a by-product of your skills. (p. 45) A New traders often focus on the results or money they can make without understanding the risk/danger of the environment they are acting in. A Recently I added "Why I shouldn't take that trade." I used to trade successfully market reversal from a sell off. Now, when we have a down trending day, I only look for continuation of the sell off. In fact, I like to short the failed "minor long."

Chapter 2 Why a new thinking Methodology W- Not everybody thinks or deals with trading issues the same due to how unique our experiences are within our trading journey. Psychologic obstacles are an ongoing issue that everyone needs to revisit. A- The obstacle that Mark lists which resonates with me is that you will need to learn how to release yourself from any feeling of inadequacy, guilt, or shame. A- The psychological aspect is what I plan on addressing this week. I felt that the amount of time I spend on trading is endless compared to other things needed to be done in other parts of my life. I plan on fixing this issue by not trading after 10:30 and also to work on not babysitting my trades.

Chapter 2 - Why a New Thinking Methodology W - Beyond the sheer mechanics of the activity - which just about anyone can master - lies a particular thinking methodology or strategy that leads to excellence. Although few people have it, such a thinking methodology can nevertheless be learned. One such skill (for example) may be the ability to identify those conditions that are conducive to making a common trading error before it actually happens. Other techniques include: (Summarized): 1. Learning dynamics of goal achievement to stay focused on what you want rather than what you fear 2. Learning to recognize the skills needed to progress as a trader and remain focused on developing them (instead of $) 3. Learning to adapt to market changes 4. ID comfort level of risk and learning to expand it so you maintain an objective perspective 5. Learning to execute trades immediately when they set up 6. Learning to let market tell you how much is enough (not your mind based on P&L) 7. Structuring beliefs to control perception of market environment 8. Maintain a state of objectivity 9. Recognizing true intuitive info & ability to act on it consistently A - Mark is telling us skills/techniques we need to acquire in trading A - I love all his lists he always gives us. I write them and put them on my wall so I can read them in the morning. My big focus was on #1...I am slowly moving past that now to #4. I am refining all of them and probably will be for a while, but that is ok:)

Chapter 2 - Why a New Thinking Methodology? W - "Many traders will try to circumvent confronting these limiting beliefs by becoming an expert market analyst. It doesn't matter how good a market analyst you become; if you don't release yourself from the effects of these beliefs, you won't be successful to the extent these limiting beliefs have power over your mental system." -Mark Douglas A - What Mark is telling us is that some of our beliefs that have been ingrained since birth are so strong that they have devastating effects on our psychology and by extension, our trading. Instead of confronting those limiting beliefs we choose to spend enormous amount of time and mental effort to learn a skill believing that skill will reduce or eliminate those limiting beliefs. But as we know as traders that is not the case. A - Many times when I share my trades online, I always have individuals who suggest that I should learn a different trading style, revise my stop distance, or provide some other trading recommendations. Even though I am appreciative for the feedback, the issue with my bad trades was most exclusively related to trading psychology. I choose to keep my trading strategy simple, revising when necessary, and focusing on reducing the effects of limiting beliefs on my trading by journaling and reflecting on my trades every day without fail.

Chapter 2 - Why a New Thinking Methodology? W: The Irony is, of course, that, on the surface, trading looks so simple, when in fact most people will find it to be the most difficult endeavour they ever undertake. Success will always seem so close, and yet always so elusive. A: He would like to tell us, that we may not underestimate trading. It looks like so eays. But it isn't. And when we don't achive our goals we are looking for new strategies. But the solution is not in new strategies. It is in changing our believs. A: I have to work on many things. But not on the strategy side. I will work on psychology, limiting beliefs, lack of self diszipline and so on.

I know this is Chapter 1 based - but it is something I am coming to a deeper understanding of daily. And reminding myself of it helps me be patient with my process. I've had those gloriously transcendent, aka non emotional, moments where I've crossed into Quote 2. But both of these are a work in progress. Quote 1: The few traders who pass through this phase to accumulate wealth are those who eventually confront and work through some very difficult psychological issues about what it means to be a trader, and this process of realization and change normally takes several years, even for the best of them. Quote 2: (which echos quote 1) At some point, they probably realized that something about themselves had changed because the normal kind of market activity that once had a very negative emotional impact on them, like anger, stress, anxiety, and fear, just didn't have the same effect any longer. A; What Mark is telling us - well which is his message - that you will need to go through massive changes to become the trader you want. ALthough some might be there already. A: For me this is profoundly true.