Index

Accountability, 50 Accumulation of profits, 72 Active loser concept, 43-44

loss cutting and, 65-66 Adaptation;

acknowledgement of need to leam, 130-31

constant state of learning, 148 current knowledge as block to new

knowledge, 130-36 to environmental conditions,

121-37

learning and quality of experiences, 126-37

and level of satisfaction, 121-22 of mental environment to known

physical world, 125-26 mental techniques, 148 obsolescence of old knowledge,

136-37

Affirmations and trading, 177 Anger.-

defusion of, 156

and demand for market

conformation, 220 in mental environment, 87 Associations, 103-09 categorization, 103 energy loop and, 105-09 extraneous sensory information,

103-04 individuality of, 108 natural, 133-34

positive and negative experiences, 104 Attention: directed, by writing, 172-73 energy intensity and, 115 limiting to single market behavior, 208-10

Attractions, and learning, 126-27

Balance area, 190-93

versus value area," 190-91 Bear market requirements, price dynamics, 199-200

Behavior, cultural, see Cultural

behavior; Market behavior

Being wrong, 46 change of beliefs, 12 and marker sense, 47 and personal belief system, 46

Belief alteration techniques, 167-79 affirmations, 177-79 desire for change, 167-68 indentification of conflicting

beliefs, 169-71 self-discipline development, 173-77 self-hypnosis, 177 writing for attention direction, 172-73

Beliefs, 113-15

about deserving money, 17 change about being wrong, 12 childs definition of reality, 131-32 as closed-loop system, 113-14 comfort zone and, 168 in conflict with goals, 173 cultural, detriment to trading,

15-16 de-energized, 168 distortion of, 22-23 as emotional energy, 87 as environmental information management systems, 113-15 erroneous, locked into, 18 and fire walkers, 16 formed from experiences, 131-32 Indestructibility of, 168 and information inhibition,

114-15 limiting, 28-29, 68-69 limiting ability to gather

information, 39-40 manipulation techniques, 82 parameter definition, 114 in probable outcome, 214 resistance implied in, 25-27 as self-fulfilling prophecies, 194 significance of losses, 12 "trading is easy," 22-23 versus conscious goals, 173 versus intents, 145 see also Personal belief systems

Bid, defined, 184

Bull market requirements. 199-200 Buyer and seller ratio, 39 Buying force, creation of, 191-92

Change, mental environment and,

136-37 Charged energy: fear and, 102-03 intensity of, 100-03 memories, 100-03 polarity of, 100 "quality of energy," 100 see also Negatively charged energy; Positively charged energy Childhood conditioning, and money, 17

Collective behavior of traders, 51-52

price dynamics, 187

price movement and, 60-61 Comfort zone of beliefs, 168 Competition and price movement, 60 Competitive environment, 17 Confidence:

increased sense of, 161-62

wisdom and, 164 Conflicting beliefs, identification of, 169-71

Confusion, in mental environment, 87

Conscious goals uersus beliefs, 173

Creation of market experience, 66-69, 202

Crearivity, 157-59

destructive life cycles and, 157-58 in mental environment, 87 mental growth and, 157 self-limiting rules and, 158 self-recreation and, 159

Crowd anticipation, and trading choices, 54

Cultural behavior:

errors of, itsus trading skills, 18-20 and trading environment, 16-18 see also Cultural thought methodology

Cultural thought methodology: childhood conditioning, 17

cultural environment versus trading

environment, 18 distortion of beliefs, 22-23 effort concept, 17, 22 expertise concept, 22 fear of financial ruin, 17 feelings of failure, 23 focus on price, 19 money concepts, 17 need ro win, 17

psychological impact of !

environment, 17 reward concept, 17, 22 self-confrontation, 17 structured work beliefs, 17-18 time concept, 17, 22 trading errors versus trading skills,

18-20

"trading is easy" belief, 22-23 versus Thought methodology of

trading, 15-30 see also Trading methodology Current knowledge, as block to new

knowledge, 130-36 Current price: defined, 35

market perception and, 66-67 Current set of limitations, 130-36

and learning, 136-37 Cycles:

environmental, 95

of fear, 102-03

of market reversal, 194-95

and price movement, 192

"Demand-backed expectations," 219 Developing trading skills, 201-22

banishment of fear, 202

capital as tuition, 206

change of focus, 204

concentration on single market behavior, 208-10

executing losing trades, 207-08

execution of trading system, 210-13

focus on learning, 204-06

identification of guidelines, 203

learning objectivity, 219-21 losses, dealing with, 206-08 need for self-trust, 203 outguessing system, 211-13 predefining losses, 206-07 redefining missed opportunities, 205

redefining "mistakes," 204-05 self-examination, 216 self-monitoring, 221 skill identification, 202 thinking in probabilities, 215-19 trading experience framework, 205 trading system problems, 211 see also Trading skills Disciplined trader, see Successful trader

Disciplined trading approach, 70 Discomfort from inconsistent actions, 173

Disequilibrium, creation of, 191-92 Distinctions:

environmental, 104, 108

perceptual, 105-07 Distortion:

of beliefs, 22-23

of information, freedom from, 203 of perception, 22 Dreams:

and markets power over, 17 in mental environment, 87, 91-94 nondimensionality of, 91-92 speed of, 92-94

Economic law of supply and demand, 61-62

and price movement, 62 Effort concept, 17, 22 Emotional control, needed for trading skills, 4

Emotional energy, see Mental energy Emotional wounds, 142-43 Emotions, 87

anger, 156, 220

categories of, 87

fear, see Fear

Emotions (Continued} greed, 46

positively and negatively charged, 87, 101-03

relationship with perceptions, 110-13

revenge, 46-47

stress, see Stress Energy loop:

associations and, 105-09

perceptual distinctions, 105-07 Environmental cycles, 95 Environmental distinctions, 104

individuality of, 108 Environmental information:

perceptual distinctions, 105-08

processed as experience, 89-91 Environmental information

management systems, 99-119

associations, 103-09

beliefs, 113-15

energy loop between physical and mental environments, 105-09

fear as negative situation enhancer,

115-19 memory storage, 99-103 relationship between perceptions and emotions, 110-13 Environments:

cultural versus trading, 16-18 mental, see Mental environment unstructured, of market, 49-57 Equilibrium of market, 184 Equity charting, as state of mind, 153-54

Exchange system, money as, 61

Execution of trades, as trading skill, 71-72

Expectations:

"demand-backed," 219 in mental environment, 87 public versus professional, 200

Experience: defined, 89

environmental information processed as, 89-91 internal impetus for shaping of, 109 quality of, and learning, 126-37 Expertise concept, 22

Failure, feelings of, 23 Fear, 115-19

affecting market judgement, 117-19

as attention limiter, 115

charged energy and, 102-03

choice limitations in trading, 118-19

creating more fear, 116-17

and cultural thought methodology, 16-17

cycles of, 102-03

evolution beyond, 202

of financial devastation, 17

and force of pain recognition, 108

immobilization by, 19

limiting force, 102-03

losing trade and, 118

from opposition of intents and beliefs, 145

and perception of choice, 82-83

price movement and, 82

purpose of, 116

release of, 70-71

supply and demand and, 61-62

winning trade and, 118 Fear generation:

and ability to execute trade, 71-72

authors, 9

from psychological damage, 71 Feelings:

categories of, in mental environment, 87

and time perception, 97-98 Fire walkers, 16

Framework for trading experiences,

205 Future value: defined, 63

as trading rationale, 63-64 G

Gambling:

and active loser concept, 43-44 versus trading, 43, 212

Goa! achievement dynamics, 139-54 constant state of learning, 149 fundamental assumptions, 149-50 with insufficient skills, 141 interaction skill level, 140-41 need for learning, 19 need recognition and, 139 perfection of moment, 150-53 recognition of need to learn, 149-50

rewards at self-valuation levels, 153-54

Goals:

changing opportunities for

fulfillment, 162 in conflict with beliefs, 173 conscious, versus beliefs, 173 formulation of, 139 interaction with external

environment, 139 in mental environment, 87 see also Goal achievement

dynamics

Greed: defined, 46

in mental environment, 87 origin of, 41-42 and personal belief system, 46 supply and demand and, 61-62 Guilt, feelings of, 23

Hedging-.

effect on market, 192 and value protection, 192 Herd mentality of traders, 51-52 Hesitation, and opportunity perception, 218

Highs:

market testing, 195 price movement, 193 Holograms, as example of

nondimensionality of energy 91 Hoping:

value of, 164 versus intuition, 163

Identity, valid symbols of, 9 Illusions, 151-52 defined, 151

in mental environment, 87 Inadequacy, feelings of, 23 Inconsistent actions, discomfort and

resistance from, 173 Individual traders:

experiences and market perception, 66-67

and price dynamics, 187 Insults, escalation of, 155 Intensity of energy, 100-03 Intent versus beliefs, 143-44

in trading, 144-45 Inrerdependency of trade system,

61-62 Intuition:

ignoring of, 19

in mental environment, 87

increase of, 163-64

versus wishing or hoping, 163

Knowledge

evolution, 159-60 impossibility of perfection, 128 non-existence of mistakes, 160

Last posted price, defined, 184

Learning:

assessment of probabilities, 132-33 experience quality and, 126-37 as function of human existence, 127-28

necessity for constant state, 147-48 need to know, 126 need to leam, 126-27 see also Adaptation versus resistance, 162-63