Lecture Notes on Objectivity and Trading Psychology

Key Concepts

Objectivity

• Definition: Objectivity refers to perceiving reality without personal biases or beliefs influencing perception.
• Challenges: True objectivity is inherently difficult because beliefs limit perception.
  • Beliefs: They filter reality and can differ between individuals.
  • Awareness: Requires simultaneous awareness of all possibilities, which is beyond current human capability.

Individual vs. Macro Perspective

• Micro (Individual) Perspective: One can be objective to the extent of accessing learned beliefs and perceptions without mental blocks.
• Macro Perspective: A shared objective reality is impossible without simultaneous awareness of all information by everyone.

Perception and Fear

• Perceptual Process: Fear alters perception by narrowing focus and limiting perceived possibilities.
• Euphoria: Opposite effect where perception is overly positive and risk is overlooked.

Changing States of Mind

• Control Over Happiness: Possible by questioning and changing definitions and beliefs.
• Process of Questioning: Asking sincere questions opens the mind to new possibilities and creative processes.

Techniques and Examples

Questioning for Change

• Sincere Questions: Asking questions with genuine curiosity opens up inspirational thinking.
• Example: The author wrote books by asking genuine questions and receiving answers as inspiration.

Trading and Overcoming Beliefs

• Trading Beliefs: Recognizing and changing dysfunctional trading beliefs through exercises and self-awareness.
• Example: A trader improved by focusing on support and resistance, adjusting behavior through a structured process.

Monroe Institute Tapes

• Purpose: High-frequency sound tapes designed to install tools for neutralizing fears.
• Active Participation: The tool (e.g., plus no more no more command) must be actively used to neutralize fears.

Practical Philosophy for Change

Universal Expansion

• Universe: Constantly expanding, suggesting a need for humans to also evolve and expand personally.
• Happiness: Associated with adaptability and expansion; resistance leads to stress and dissatisfaction.

Questions and Curiosity

• Role of Questions: Drive expansion of knowledge and personal growth.
• Limiting Beliefs: Fear and unwillingness to question limit potential expansion.

Trading Strategies

Objective Beliefs

• Belief Installation: Creating beliefs like "I am a consistently successful trader" through learned trading skills.
• Principles of Consistency: Define edges, predefine risk, accept risk, act without hesitation, monitor errors, understand necessity of principles.

Mechanical Trading

• Sample Sizes: Commit to a set number of trades to overcome mental conflicts and develop a belief in probabilities.
• Execution: Precise entry and exit based on predefined criteria.

Subjective Trading

• Advanced Stage: Use market understanding to make subjective decisions.
• Symmetry: Look for symmetrical behavior in markets as a sign of potential trades.

Affirmations and Mental Exercises

• Affirmations: Positive statements to reinforce trading beliefs and mindset.
• Counting Exercise: Technique to become an objective observer of one's own thoughts, aiding in staying focused.

Conclusion

• Consistent Success: Achieved through structured practices, mental exercises, and continuous adaptation to changing circumstances.