Now, getting onto the 3rd Engine that completes the “3E Trading System”.
Don’t think for one second that because this is presented the least, it is less important.
Quite the opposite.
You might be thinking now, “What else would I need? If I have the “Whale-Trade Engine” + “The Expectancy Engine”, what could possibly stop me from growing my account through the sky?”
Glad you asked.
There is one BIG problem in the trading process, which is the primary driving factor responsible of “blowing accounts”.
We are talking about EMOTIONS.
Fear, greed, anger.
The “Mindset Engine” is the 3rd engine, and its main job is to keep your emotions OUT from the trading process.
This is very important, because if you DON’T have the ability to control your emotions, you WON’T be able to grow your account, even if you have the first 2 engines in place.
Let me refresh some reality for you, so we can spot the root of the problem.
Remember Jason? He told me again and again, that when he got some wins, he then “gave profits back”, lost some more, got a cocktail of ANGER mixed with FEAR and start to take STUPID trading decisions.
That led ultimately to losses and losses until the account was blown up.
Exactly the SAME path “Wannabes” go through into losing lots of money.
This not only goes into losses, and triggering the whole “pandora’s box” of negative emotions.
When you get into a wining streak, you FEEL you are the MAN. You are the best trader in the world, and because you just made 6 winners in a row, and made 32% ROI in 2 weeks, you are going to be on the Forbes 400 in a matter of months…
You are already thinking all the expensive cars and mansions you are going to buy…
THEN you get GREED into your veins, and stupid trading decisions are made.
And lost accounts come later.
The result is the SAME as the one where you were triggered by FEAR.
As you can probably tell, keeping emotions at bay is something we MUST do in order to become CONSISTENT profitable traders and grow our accounts over time.
One thing is to “know” this stuff, and ANOTHER thing is to have it embedded in your DNA to execute it “unconsciously”.
Now I’m going to share with you something that’s a MUST to understand in order to be able to leave emotions at the door, BEFORE you can develop “The Brain Of A Pro Trader”…
This is a follow up on what we were talking about on the “Expectancy Engine” a few minutes ago…
I’m talking about randomness.
This is something that NO ONE ever mentions, even the “gurus” out there do not like to bring it up.
Randomness is one of the elements at play that GOVERNS every trade outcome you get.
For example, when you place 50 trades, and you know when applying the 2 previous “engines” you have a 60% success rate on your trades, with a 1:2 Risk-to-reward ratio, with those stats you would be GROWING your account like crazy!
BUT, that’s an average. We DON’T know in what order the winners and losers are going to come. It’s COMPLETELY RANDOM.
So it’s VERY likely you are going to have some losses in a row… or multiple winners in a row… (equally dangerous in my book).
The KEY is to HOLD your emotions and not get FOOLED during winning and losing streaks.
Here is a real-life scenario to understand my point.
Below you can see two different trading accounts:
Both of this accounts are almost identical.
Both started with $100k, and after 100 trades, we see it’s capital tripled and get $300k.
Both had a constant 1:2 RR ratio, with a $4k risk on every trade, with a constant 50% success rate.
So both of them had 50 losing trades (-$4000) and 50 winning trades (+$8000).
But there is only ONE thing that’s different.
The RANDOMNESS of how those trades came!
See it for yourself.
Exhibit 1 had a steady progress, with very minor up un downs. His winners and loses came in even.
The trader’s dream.
But that’s not reality (most of the times).
Exhibit 2 is what could come to you. Although both had the same final result and the same losing/winning trades, Number 2 had a rough time.
During the first 50 trades, he got nowhere. Rumbling between 100k and 120k, and got to 150k but even had a hard drawdown down to 120k again before rocketing up.
So for the first half trades, this trader had to be really on his game mentally to bear this results.
This is what the majority of traders can’t go through.
Because after the first 60 trades, he took his account all the way to 300k in the last 40 trades. All of his profit was distributed in the last portion of his trades.
He had to go through all of the first to get the GOLD last.
That’s how RANDOMNESS govern the markets, and you should understand it to PREVENT EMOTIONS getting in your mind, and screwing up probably weeks and months of disciplined trading.
You MUST get this resolved in order to make the whole “3E Trading System” work!!
IF you don’t, we all know what you will get…
Blown accounts, high-stress, not being able to sleep at night, and thinking FX Trading is not for you…
Now, knowing this stuff as you are probably thinking now, is NOT enough.
It’s not that easy, obviously.
This is where the magic of the “Mindset Engine” comes into play, where it functions re-programming your mind to EMBRACE RANDOMNESS at a subconscious level.
This means when you are on your trading activity, all these things are EMBEDDED in your DNA, and will flow unconsciously INTO your trading.
You don’t have to “think” about it (and if you try to do it this way, only confusion, stress, and mistakes come from it).
The only way is to install what I call “Statistical Thinking” into your brain. That’s the FIRST step before you can develop “The Brain Of A Pro Trader”…
There is no other path to make this happen.
Later on I will show you how to pull this off for your own benefit, and install “Statistical Thinking” in your subconscious mind…
Let’s wrap this up, and I will show you how to APPLY the “3E Trading System” so you can start your path to become a CONSISTENTLY profitable trader, and fulfilling what you want most out FX trading.
If you want to live off your trading efforts, kick your boss in the butt, and you even got only a couple thousands to start, I will show you how to make it happen QUICKLY.
Let’s move forward now…
Click here to continue… (page 8 of 9)