Boot Camp Day 5: Discipline Psychology and Goal Setting
Introduction
- Focus on discipline psychology related to trading.
- Importance of understanding psychology in trading.
- The aim is to avoid common pitfalls by having a disciplined mindset.
Topic: Goal Setting
- Importance of setting and achieving goals.
- Goal setting is similar to enhancing skills in sports such as basketball.
- X Factor: Transition from a 'practice player' to executing in the game.
How to Set Goals
Long-Term Goals
- Identify three long-term end goals (10 years down the line).
- Goals should be ambitious and not solely related to trading.
- Examples: Managing six figures in a trading account, buying a $10M house, owning a luxury car.
Short-Term Goals
- Write down 10 short-term goals or steps for each long-term goal.
- Example steps for trading goals:
- Follow the trading plan daily.
- Implement risk management daily.
- Journal and review trades daily.
- Aim to reach short-term goals to build towards long-term goals.
Daily Execution
- Importance of daily discipline in pursuing goals.
- Completing short-term goals daily leads to long-term success.
- Consistency is key—one percent improvement each day.
Visualization and Affirmation
- Vocalize goals every day as if they are already achieved.
- Use affirmations: "I am" or "I will".
- Building belief through repetition and affirmation.
Implementation Strategy
- Write goals in a notebook and review daily.
- Write both long-term and related short-term goals repeatedly.
- Regularly read, write, and vocalize goals to embed them in the subconscious.
Homework and Action Items
- Get a notebook dedicated to recording goals.
- Write down three long-term goals and 10 short-term goals each.
- Complete daily tasks to stay on track.
- Vocalize goals daily with confidence.
- Use the notebook as a trading journal.
Conclusion
- Goal setting requires a structured approach and daily commitment.
- Overcoming embarrassment and expressing goals openly is essential.
- The process is continuous and requires dedication and discipline.
Your Homework: Start today by laying out your goals and begin taking consistent steps towards achieving them.