Limiting beliefs, 28-29. 68-69 Losing:

and cultural assumptions, 3940

and market sense, 47

passive loser versus active loser concepts, 43-44

personal belief system, 46

random, 54 Losing trade;

execution of, 207-08

and market temptation, 42

refusal to liquidate, 18 Loss cutting, active loser concept, 65-66

Losses:

acceptance of, 25

consequences of avoidance, 11

from culturally teamed behavior, 18-19

dealing with, 206-08

predefining. 206-07

refusing definition of, 18 Lows:

market testing, 195

price movement, 193

Market: defined, 35 efficiency of, 64 as gamble, 39-40 offering of opportunity, 202 perpetual motion of, 217 psychological perspective, 27 randomness of, 64 Tightness of, 35-37 temptations of, 42 testing of, 195

as unstructured environment, 49-57

Market behavior, 27, 188-89 and beliefs, 36-37 concentration on single, 208-10 defined, 188 patterns, 188-89 price patterns and formations, 190-93

Market data organization, 190

Market environment, 17 psychological impact of, 17 "uruimitedness," 39-40 unstructured, 49-57

Market experience, creation of, 66-69

Market interaction and traders, 37 Market movement, perception of opportunity and, 68-69 see also Price movement Market movement assessment: limit on informarion gathered, by

erroneous, 39-40 psychological factors, 40 Market participant consistency,

defined, 39 Market perception, individual experiences and, 66-67 Market position, see Positions of traders

Market potential, focus on, 19 Market temptations on winning and

losing trades, 42 Market value, determination of, 35 Memories:

as behavioral force, 98

as charged energy, 100-03

compression of, 97

as environmental information systems, 100-03

fear generating, 102-03

in mental environment, 91-94

nondimensionality of, 91-92

painful, 102-03

significant, 96-97

speed of, 92-94

versus recollection, 141-42 Mental energy:

defined, 88-89

expression of, 87

management of, see Mental energy

management negatively charged, 101-03, 155 positively charged, 101 Mental energy management, 155-65 anger diffusion, 156 benefits, 161-65 constructive thoughts, 156 destructive thoughts, 155 increased levels of satisfaction,

162-63

increased sense of security, 161-62 insults, 155

negatively charged energy, 155 and escalation of emotions, 155-56 tools for change, 156-57 Mental environment, 85-98 balance with outer physical

environment, 122 brain and, 90 categories in, 87

changes for effective functioning, 136-37

correspondence to energy, 91-98 definition, 87-88 dreams, 92

framework of mental environment, 87

memories, 91-94 nature of, 85-87 nondimensionality, 91-92 speed of, 92-98 thoughts, 156-57 time and, 94-96 Mental growth at conscious level, 157

"Mistakes":

non-existence of, 160-61

redefinition of, 204-05 Moment perfection, 150-53 Money:

childhood conditioning about "deserving," 17

defined, 61

how traders make, 184 as system of exchange, 61 windfall profits versus structured work beliefs, 17-18

Natural association, 133-34

see also Associations Needs;

in mental environment, 87 recognition of, 139 Need to learn:

determination of, 129-30 difficulty of acknowledgement of, 130

Negatively charged energy

anger, 156

categories of, 87

characteristics, 101-03

fear, see Fear

greed, see Greed

revenge, 46-47

stress, see Stress Non-physical versus physical reality, 90

Objectivity, 219-22

developing trading skills, 219-21

recognition of, 221

and trading rules, 222

and "uncommitted assessments of probabilities", 219-21 Offer, defined, 184 Opportunity:

identification of, 202

and inability to execute trade, 218

missed, redefining, 205 Opportuniry perception, 69-71

execution failure and, 72

and market movement, 68-69

as trading skill, 69-71

Passive loser concept, 43-47 Passive losers, and price movement,

44-47 ftreeptions:

alternate experiences and, 111-13 blocking by current belief, 133 changing, and trading, 135-36 experience shaping and, 107-09 of opportunity, see Opportunity

perception relationship with emotion, 110-13

total environmental distinctions

and, 107 of traders, and price movement,

Perceptual distinctions: and energy loops, 105-07 environmental information,

105-07 market opportunities, 106 Perceptual diversity of individuals, 135

Perpetual motion:

of market, Z17

of market, and passive loser concept, 43-47

of prices, 41 -47 Personal belief systems, 46-47

being wrong, 46

choice range, 171

conflicting belief identification, 169-71

directing conscious shift, 167-69 greed, 46 losing, 46 revenge, 46-47

techniques for change, see Belief alteration techniques Physical versus non-physical reality,

Point and figure charts, 187 Polarity of energy, 100-03 Positions of traders:

and determination to keep, 19

price movement and, 59 Positively charged energy

characteristics, 101

in mental environment, 87 Present value agreement, 184 Price charts, 187

significant market reference points, 189-90

symmetrical patterns, 189 Price dynamics, 184 88

bear market requirements, 199-200

bull market requirements, 199-200

collective behavior of traders, 187 highs and lows, 193 individual traders and, 187 market behavior, 188-89 price patterns and formations.

190-93 public versus professional

expectations, 200

reversal of support and resistance

levels, 196-97 shift of balance of force, 187, 194 significant market reference points,

189-90

support and resistance, 193-97 trends and trendlines, 197-200 Price movement:

collective behavior of traders and,

60-61 competition and, 60 direction, 218 effect of personal belief, 36 function of group behavior, 187 highs and lows, 193 market behavior patterns, 188-89 meanings of, 27 opportunity creation, 36 passive losers and, 44-47 perpetual, 41

price patterns and formations,

190-93 probability and, 44-45 profit opportunity from, 11 psychology of, 183-200 risks and, 62

supply and demand and, 62

support and resistance value levels, 193-97

traders" perceptions and, 64

traders positions and, 59

trading rules and, 8, 206-08 Price patterns and formations, 190-93

balance area, 190-93

"value area" versus balance area, 190-91 Probabilities:

and price movement, 44-45

thinking in, 215-19 Probability assessment:

of learning, 132-33

uncommitted, 69-70 Profit accumulation, 72 Profit and loss potential, 39-40 Psychological damage, defined, 71 Psychological factors:

market movement assessment, 40

of trading success, 27-30 Psychological impact of market

interaction on individual, 17

Quality of energy," 100 r

Random winning and losing, 54 Rationale of author, 3-13 Reasoning ability, mental growth and,

157 Reasons:

irrelevance of, in market

environment, 59-64 for trading, 61-62 Recollection versus memories, 141-42 Reference points, see Significant

market reference points Release of fear, 70-71 Resistance: formed from inconsistent actions, 173

versus learning, 162-63 Resistance price level, 193-97 becoming support price level,

196-97 defined, 193 identified, 195 Responsibility:

avoidance of, through lack of

structure, 52-53 avoidance of, through superstition,

53-54 and self-acceptance, 55 taking of, 46

taking of, in unstructured environment, 49-57

Revenge:

and market sense, 47

and personal belief system, 46-47 Reward concept, 17, 22 Righmess of market, 35-37 Risks;

defined, 62

gambling versus trading, 212

and price movement, 62 Rule establishment in unstructured

environment, 49-50 Rules for trading, see Trading rules

Satisfaction, increased levels of, 162-63

Security, increased sense of, 161-62 Self-acceptance, 55, 72-77 example of failure, 73-76 responsibility and, 55 results of cultivation, 77 Self-discipline:

belief alteration techniques,

173-77 defined, 201 exercises, 174-77 lack of, 29-30 need of, for trading skills, 4 and trading, 201 Self-hypnosis and new belief

establishment, 177 Self-improvement, need of traders,

151-53 Self-knowledge, 10 Self monitoring, and developing

trading skills, 221-22 Self-trust, in developing trading skills, 203

Self-valuation:

profit accumulation and, 72

and trading, 223

as trading skill, 72 Set of limitations, current, 128-29 Shame, feelings of, 23 Significant market reference points, 189-90

defined, 189

determination of, 216-17 establishment, 194 highs and lows, 193 price charts, 189 support and resistance, 193-97 Social thought methodology, see

Cultural thought

methodology Static environment and sense of

well-being, 17

Stress:

defined, 131

as learning device, 135

in mental environment, 87

in trading environment, 17

Structured work beliefs versus windfall profits, 17-18 Successful trader, 65-77

change of mental perspective, 162 creation of market experience, 66-69

disciplined trading approach, 70 evolution beyond fear, 202 internal changes, necessity of, 5-6 perception of opportunities, 69-71 profit accumulation, 72 release of fear, 70-71 self-acceptance, 72-77 technique explanation, difficulty

of, 4-6 trade execution, 71-72 winning trade, and fear, 202

Superstition as trading factor, 53-54

Supply and demand, 61-62

Support and resistance zone, defined, 195

Support price level, 193-97 becoming resistance price level,

196-97 defined, 193 identified, 195

Thinking ability:

as greatest asset, 10

mental growth and, 157 Thought methodology of trading, see

Trading methodology Thought methodology, social and

cultural, 15-30 Thoughts.

constructive, 156

destructive, 155

in mental environment, 87

as tools for change, 156-57 Time;

concept, 17, 22

defined, 95

experiences of, and feelings, 97-98 individuality of perception of, 108-09

mental environment and, 95

and reward principles, 17 and space, 95

subjective measurement of, 95-96 Traders:

cultural beliefs versus trading

success, 18-19 disciplined, see Successful trader equity charting as state of mind,

153-54

and interaction with market, 37 irrelevance of reasons, 59-64 as market components, 184 relating to value, 191 self-improvement needs, 151-53 self-valuation, 154 successful, see Successful trader unsuccessful, see Unsuccessful trader

Trades:

as indicators of self-evaluation,

153-54 execution of, 71-72 and market consistency, 36 and potential for market

movement, 36

Trading:

creating of market experience, 202 decision possibilities, 41-42 defined, 63 goal of, 63-64 interdependency of, 61-62 learning flawless execution of,

213-14 as mental activity, 201-02 psychological factors of success,

27-30 reasons for, 61-62 and self-discipline, 201 and self-valuation, 223 structural lack and responsibility

avoidance, 52-53 trial and error approach to, 4-5 see also Trading environment;

Trading skills Trading environment:

collective behavior, 51-52, 60-61 immediacy of outcome and, 67-68 psychological issues for individual

trader, 42 narure of, 35-77

perpetual morion of prices, 41-47 profit and loss potential, 39-40 Tightness of market, 35-37 and stress, 17 unlimitedness of, 39-40 unstructured environment, 49-57 veTsus cultural environment, 16-18

Trading methodology, 15-30 effort concept, 17, 22 reasons for adopting, 25-27 release of feelings of failure, 23 reward concept, 17, 22 skill acquisition, 19-20 and system validity, 21 time concept, 17, 22 and trading errors, 18-19 and trading systems, 20-21 in unlimited environmenr, 23 see fltso Cultural thought methodology

Trading pattern, result of consistency of, 19

Trading range: defined, 195

and money-making technique,

195-96 Trading rules, 12, 206-08

establishment m unstructured

environment, 49-50 exact implementation, 214 following, as trading skill, 203-04 money management, 12 Trading skills, 19-20,69-72 accumulation of profits, 72 belief alteration and, 23-27 creation of market experience,

66-69, 202 emotional control, 4 establishing trading rules, 203 execution of trades. 71-72 flawless execution of trading

system, 210-13 focus on "now moment," 216 following trading rules, 203-04 freedom from information

distortion, 203 identification of, 202 lack of. 28

perception of opportunity, 69-71, 202

psychological beliefs and, 21-23 self-discipline, 4, 201 self-trust, 203 self-valuation, 72 thinking in probabilities, 215-19 trading without fear, 202 versus cultural behavior, 18-19 versus trading systems, 20-21 see also Developing trading skills Trading systems: adherence to, 214 defined, 211

establishment of, 213-14

ignoring rules of, 19

and loss tolerance, 213

and market behavior, 20

objectives, 213-14

outguessing, 211-13

problems with, 211

versus trading methodology, 20-21 Training exercise:

belief in probable outcome, 214

objectives of, 213 Trends:

defined, 197

as function of time, 197-98 Trial and error approach to trading, 4-5

Trust and wisdom, 164

"Uncommitted assessments of probabilities," 219-20 necessary for effective trading, 69-70

Understanding and wisdom, 164 Unstructured environment, 49 57 rule establishment in, 49-50 taking of responsibility in, 49-57 Unsuccessful traders: and belief alteration, 23-27 childhood conditioning about

deserving money, 17 and culturally-learned behavior, 18-19

forced awareness of failure, 6-7