THE FORMULA OF SUCCESS

A lot would think that success is all about hard work and expertise. However, these only contribute to 20% of success. The majority of the work, 80%, is psychology. It is because,

A stock market trader would tell you that their most significant challenge in trading is not in the hours spent studying assets, and analyzing charts but in mastering their fears and greed.

Do you think successful people would be at the point where they are now if they told themselves they couldn’t do it? Obviously, it’s the contrary.

It is only our mind that limits our capabilities. When we say it is difficult, then it is. But when one says it can be done, then, it can be done.

Henry Ford once said,

Hence, when you tell yourself

I AM NOT RICH
I AM NOT CAPABLE TO DO IT
I AM NOT A CHAMPION
I AM NOT STRONG
I AM NOT POWERFUL
I AM NOT AMAZING

They become your reality.

This is why the first part of my coaching session deals with money psychology because I believe that no matter how effective a financial strategy is, it is bound to fail if one has a limiting mindset. 

So be aware of the power of your thoughts, and the words you invoke upon yourself since these can either limit or empower you. Choose your thoughts wisely because you will become what you think you are. 

or in the Christian perspective, 

“On earth as it is in heaven.”

It was at that point that I realized that trading itself is a spiritual journey. Then I asked myself, 

“If it is indeed a spiritual quest, how would you know that you are on track?”
“What are the milestones?” 

I had to look not only into my trading experience but also into successful traders’ journeys. With that, I was able to come up with The 7 Stages on Trading as a Spiritual Journey, which follows:

Stage 1. The Birth

This is the stage wherein you start hearing from people about the stock market (or forex, crypto, etc). You learn that they are earning a huge amount of money, but unbeknownst to you, a lot are also losing huge sums of funds.

Stage 2. The Exploration

With your curiosity, you start researching. You join groups, you attend workshops. You read books. You experiment with different assets, trading strategies, you begin to learn. You explore.

Stage 3. The Emergence of Ego

As you hone your trading abilities, you become confident, and you begin telling people how profitable you are in your trading and with your skills. You talk about it with pride, and of course, there’s nothing wrong with it until you cross the line – when it starts feeding your ego. 

For some, they get addicted to the praise and the compliments (and the Facebook likes), but for most, overconfidence creeps in. And when the market owns them, they are crushed. When that happens, others will simply give up. But for some, they would not accept defeat. They will continue to perfect their ways, they will explore new strategies again (and perhaps other assets). There’s nothing wrong with experimenting and practicing, for that is how we sharpen the blades, but unfortunately, the ego will fail them once more. They will be trapped between the cycle of exploration and the fall due to ego. A cycle much like Samsara. 

The egoic self will continue to grow as it thrives on fear and greed. 

“I cannot fail.”
“I cannot miss out.”
“I have to win.”

Stage 4. Awakening & Awareness

In the never-ending cycle between Exploration and Ego, you start realizing that the market humbles the best of us. We can never control the market. The market will decide on its own no matter how complex your trading setup is. As the famous American billionaire investor and hedge fund manager, once said, 

As you slowly discern that you are not in control of the market, that you have been feeding your ego all along, you begin to be conscious of its presence in you. With that awareness, you have been awakened. 

Stage 5. Acceptance & Renunciation

You can never eliminate what you think you don’t have. Hence, as you humbly accept the presence of your egoic self (which is the “false you” that you created in your mind) you begin to renounce it. And every time you feel (by virtue of awareness or mindfulness) that your thoughts or actions are feeding it again, you immediately abandon those thoughts or actions.

Stage 6. Consistent Practice

As you continue in your trading journey, it takes constant practice and discipline not only to improve one’s trading skills but to also keep the ego in check. As the saying goes,

For some, a solitary journey might work but you don’t have to be alone in this undertaking. It is also best that you have accountability partners or groups to help you stay on track.

Stage 7. Legacy & Contribution

For those who have already transcended beyond mastery, earning a hundred thousand or millions no longer matter to them. What they value most now is how to aid in the expansion of humanity’s consciousness. 

With the wealth they have amassed, they create projects which unite people, not divide. They continue to contribute to the world and leave a legacy with the hope that humanity will no longer promote war but peace and love.

I believe we all go through these stages, with no shortcuts. The 7 Stages, for me, illustrate how important intangibles are. Most of the time, a lot of us focus more on the technicalities of trading that we forgot about the emotions and psychology involved – which I believe have the greatest impact on the results. I have known people with very simple trade setups, just a few lines, but are now in the “Legacy & Contribution” stage. Their journey was not overnight. It took them years and they lost a lot too, even millions. But the important thing is, they were able to master themselves and now helping people all over the planet. 

Sometimes I ask myself at what stage am I in. To be honest, I really don’t know because I don’t actively trade anymore. I am more of a long-term investor, and I use platforms like this. Nonetheless, I believe that the 7 Stages are not only relevant to trading, or in our financial freedom journey. It is equally applicable in all facets of our life as we live each day towards a greater purpose: To leave a legacy of love and contribution. 

PS: If you are more of a science person, you can check Dunning-Kruger Effect.

2. IT MAKES SURE WE ARE THE ONES CHOOSING THE DIRECTION OF OUR LIFE — NOT OTHERS, NOT FATE, NOT THE MEDIA, ETC.

It is often easy to let others set our direction for us. We take a job because family or friends point us in that direction and then we follow the dictates of our bosses. We move in other directions because popular culture or the media tells us to do so. The simple truth is that if we do not set our own goals then we will find it too easy to follow a path set by others. This can lead to stress and unhappiness. We have a greater chance of happiness and fulfillment following our own path and pursuing our own goals.

3. GOAL SETTING MOTIVATES

While goals certainly give our lives direction, they also provide the motivation to get us through difficult times and choices. Perhaps going to college at night while working full-time may be stressful and difficult in the short term, but in the long run, being able to pursue the professional goals we desire will make it worthwhile.

4. IT MAKES SURE WE GET WHAT WE WANT IN LIFE

Goals also serve as the destination for what we really want out of life. For some people, goals are measured in money or material goods, while for others goals are measured in time or freedom. If we do not have goals outlined that suit our unique perspective on life it is easy to become sidetracked by life and others.

6. GOAL SETTING REDUCES STRESS

Just as goals save time they also reduce stress because using your goals to focus your life and choices makes it easier to make those choices. Should you take that new position at work? How does it match your goals?

7. IT GIVES A SENSE OF ACCOMPLISHMENT

Finally, goals give you a measurable sense of accomplishment (learn more about SMART goals here). Every goal you achieve, in fact, every step you take towards that goal, can give you a boost of energy and momentum to keep going. Each success powers you toward the next level of success.

Now go out and set your goals. To know more about Financial Freedom Coaching, book a free discovery call by clicking this link.