Summary
In this episode of Mind Over Markets, Louise Bedford and Jordon Mellor discuss the importance of goal setting in trading. They emphasize the need for traders to set clear and specific goals that are aligned with their values and aspirations. The hosts explore different types of goals, including avoidance goals and approach goals, and how they can impact a trader’s mindset and performance. They also introduce the concept of mastery goals, which focus on becoming proficient in a particular area. The hosts discuss the power of visualization and affirmations in helping traders achieve their goals. Overall, the episode highlights the significance of goal setting in trading and provides valuable insights on how traders can set and pursue their trading goals effectively.
The Importance of Goal Setting in Trading
Goal setting is a crucial aspect of trading that often gets overlooked. Many traders fail to realize the significance of setting clear and specific goals that align with their values and aspirations. They mistakenly believe that trading is solely about following a system, neglecting the importance of their mindset and psychological well-being. However, as Louise and Jordon emphasize, trading is not just about the system; it is also about how traders implement that system and their ability to manage their emotions and mindset.
Avoidance Goals versus Approach Goals
Louise and Jordon discuss two types of goals in the trading context: avoidance goals and approach goals. Avoidance goals are focused on avoiding negative outcomes or losses. Traders who set avoidance goals often have a fear of repeating past mistakes or experiencing failures. On the other hand, approach goals are centered around achieving something positive or desirable. Traders with approach goals are motivated by the potential rewards and benefits of their actions. The hosts highlight the importance of setting approach goals rather than avoidance goals in trading. Approach goals provide a sense of fulfillment, satisfaction, and motivation. They evoke positive emotions, such as elation and confidence, and contribute to a trader’s overall well-being and longevity in the markets.
Case Study: Allison Felix
To illustrate the power of approach goals, Louise and Jordon discuss the case of Allison Felix, a track and field athlete. Allison initially had an avoidance goal of not wanting to come second in races. However, she realized that this mindset was limiting her potential for success and happiness. She transformed her goal into an approach goal of winning gold medals. By shifting her mindset, Allison became the most decorated female track and field athlete in US history. Her story demonstrates the transformative power of setting approach goals and believing in one’s abilities.
Mastery Goals: Pursuing Excellence in Trading
Louise introduces the concept of mastery goals in trading. Mastery goals focus on becoming proficient and skilled in a particular area. Traders who set mastery goals aim to continuously improve their trading skills and knowledge. Pursuing mastery goals brings intrinsic satisfaction and a sense of personal growth. The hosts encourage traders to set mastery goals in addition to outcome-based goals. By focusing on mastering their trading plan, following it consistently, and continuously improving their skills, traders can enhance their performance and achieve long-term success in the markets.
The Power of Visualization and Affirmations
Louise and Jordon discuss the role of visualization and affirmations in achieving trading goals. Visualization involves creating vivid mental images of desired outcomes and experiences. By visualizing success and the emotions associated with achieving their goals, traders can enhance their motivation and focus. Visualization helps traders align their thoughts, beliefs, and actions with their desired outcomes. Affirmations are short, positive statements that reinforce desired beliefs and behaviors. By repeating affirmations daily, traders can reprogram their subconscious mind and reinforce positive thought patterns. Affirmations should be specific, positive, and realistic. They should evoke powerful emotions and align with a trader’s values and aspirations.
Implementing Visualization and Affirmations in Trading
Louise and Jordon provide practical suggestions for implementing visualization and affirmations in trading. They recommend creating a clear and specific goal, linking it to an emotional feeling, and writing it down. Traders can repeat their affirmations daily and display them in visible places, such as on their phones or as screen savers. For traders who struggle with repetition, Louise suggests using color and symbolic images to make the visualization process more engaging. The hosts emphasize the importance of consistency, vibrancy, and realism in visualization and affirmations. By consistently reinforcing positive beliefs and behaviors, traders can align their actions with their goals and increase their chances of success.
Conclusion
Setting trading goals is an essential aspect of achieving success in the markets. Traders need to set clear, specific, and realistic goals that align with their values and aspirations. Approach goals, mastery goals, visualization, and affirmations play a crucial role in guiding traders towards their desired outcomes. By adopting a proactive mindset and focusing on continuous improvement, traders can enhance their performance, mindset, and overall well-being. Trading goals are not just about making profits; they are about personal growth, self-belief, and achieving excellence in the trading arena.
