A markets and trading columnist for the NZ Herald

Nick McDonald: How positivity can help traders

Reporters surround Muhammad Ali in Toronto. Photo / AP
Reporters surround Muhammad Ali in Toronto. Photo / AP

Can Thinking Positively Help Financially?

Let's clear one thing up before we get into this topic. I am not one of those people who claim that just by 'thinking' positively, you will get what you want. In my opinion, you can't sit around chanting "I will be a successful trader/investor/business person" or "I am rich" and have that happen by virtue of thoughts and words alone. Its plain silly to expect that and some action is required to back those thoughts up as a bare minimum.

However, let's step back and think about this from a slightly different perspective to ask; which thoughts and words are most empowering, the positive or the negative?

A question we ask people on our trading courses goes like this...

You are going to invest $1000 of your hard earned money with a trader and you can choose from Trader A or B. They are both new traders so you have no track record or any other info to go by other than their attitudes and beliefs.

You must invest with one of them, there is no option C.

Trader A
• Says that all traders lose money and expects he/she probably will to
• Thinks the market is out to get him/her. Losing trades reinforce this belief, winning trades are considered "lucky"
• Blames their broker, platform and even the markets for their losses
• Cannot accept or admit to mistakes let alone learn from them

Trader B
• Has every intention of becoming a successful and profitable trader and a strong belief that this is possible
• Goes into every trade expecting to win, while accepting the nature of the markets is that some will not
• Accepts full responsibility and knows that whether they win, lose or breakeven, it was them who made the decision. The buck stops with them!
• Learns from every little mistake, hunts for them, learns from them, even relishes them! They search for every minor improvement to get better and stronger for the future.

Where is your money going, Trader A or B?

Most of us see the wood through the trees here and need little convincing to say "Trader B is getting my money" and certainly no one would ever put their money with trader A. Why then, do so many people start trading themselves when they are in fact trader A? We see this often, very often. If you want to become a trader then while thinking like Trader B will not guarantee your success, thinking like trader A will almost certainly doom you to failure.

No one is making you get started in trading. If you don't like it, then that is a damn good reason not to begin! But if you do like it, then approaching trading from a positive perspective adds just one small yet vital advantage in your favour. And good traders will tell you that you need every advantage you can get!

Other negative Money Beliefs

You need money to make money
Rubbish! You might need a lot of money to begin with in order to make a lot of money quickly, but you do not need a lot of money to get started making a return on what you do have over the long term. Taking action and getting started is much better than doing nothing at all. Read a book, search the web, talk to successful people, invest small... you decide but the key thing is, take some action.

"Get going. Move forward. Aim High. Plan a takeoff. Don't just sit on the runway and hope someone will come along and push the airplane. It simply won't happen. Change your attitude and gain some altitude. Believe me, you'll love it up here." - Donald Trump

"...words alone are just words. But genuine attitudes and beliefs, backed up by words and actions generate results. Negative beliefs, words and actions tend to get negative results. If you want to succeed in any arena, take the positive road."
Nick McDonald

Traders and Investors do not contribute to society
Think of who it is making this statement. What do internet trolls add to society? Who adds the most benefit; the trader going it alone to work for themselves, support their family, pay their taxes, spend money in their community and make a buck in a challenging and exciting arena or the internet troll who slams traders, among others, with negative comments? Seems slightly hypocritical to me. If you don't like it, don't do it!

If you are worried that you might make a small fortune but don't want to because you don't feel like you are contributing, then donate some of your new found money to a good cause and spend some of your free time helping those in need. It is a silly reason not to get started and easy to offset if you choose to.

"Whatever the mind can conceive and believe, it can achieve" - Napoleon Hill

Money is the root of all evil
This is a great belief - if you want to be poor and destitute all your life! If not then steer well clear. Don't be the everyday equivalent of trader A if you want to achieve success on any level.

"Thoughts become things, choose the good ones" - Mike Dooley

In summary, words alone are just words. But genuine attitudes and beliefs, backed up by words and actions generate results. Negative beliefs, words and actions tend to get negative results. If you want to succeed in any arena, take the positive road. Alone it does not guarantee your success, but is certainly does not hurt your chances!

"I am the greatest, I said that even before I knew I was" - Muhammad Ali

Nick McDonald is a New Zealander teaching everyday people how to trade the worlds markets via his company Trade With Precision.

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A markets and trading columnist for the NZ Herald

Nick McDonald is a leading independent trader and trading trainer with a global following via his company Trade With Precision. It started back in 2004 when Nick left his 9-5 job while living in London and within 3 months of discovering technical analysis became an independent full time trader. He founded Trade With Precision in 2006 born from corporate requests for him to train retail trading clients of large brokers and exchanges worldwide. A specialist in technical trading strategy for any market and any timeframe, Nick cuts the 'nonsense' associated with traditional technical analysis.

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