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Power Of The Pause

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The common sequence I see from traders is below.

Losing Traders: Impulse → 'Trade' → Repeat

Winning Traders: Impulse → 'Wait'


Breaking your trading rules is a bad habit to develop.
Especially when it works out well in your favor.

This eventually causes you to:

- Spiral out of control


- Become reckless
- Destroy your account
It only takes one moment of impulsiveness to destroy weeks, months,
and years of hard work. This is why most traders are blowing up
constantly because they don't have a process in place to stop an
impulsive trigger in the moment.

They are just on autopilot creating a perpetual sabotaging process and no


clue on how to stop it.

So the first step is simply to gain awareness. This can be done by


journaling the moments where you have these triggers that ruin your
results. This may be painful as you will most likely be recording after the
fact.
But as painful as this is you must start logging your painful moments so
you can create the awareness of the problem and then when you gain
awareness, you can then begin to create self-awareness in the moment.

If you want an easy way to track your emotions, use the 'Emotional
Tracker' Which makes this process much easier and painless.

Once you have created self-awareness of the problem, you can then use
techniques to prevent, reframe and remove yourself before the sabotage
has a chance to take over.

Next will cover a simple technique that we can use…


A simple method for when you feel you are getting impulsive:

- Stop and take a deep breath


- Count back 5,4,3,2,1
- Speak out loud why it's a bad idea
- Count back 3,2,1
- Then walk away

What this does:

- Forces you to 'stop'


- Slow yourself down
- Reframe with logic
- Remove yourself from the environment
Using this method creates the vital seconds needed

You are creating a 'pause’ in between impulse & reaction

Instead of: Impulse > Reaction

It's now

Impulse > Pause > Reframe > Remove


Using this method creates the vital seconds needed

You are creating a 'pause’ in between impulse & reaction

Instead of: Impulse > Reaction

It's now

Impulse > Pause > Reframe > Remove


When you use this method you are creating control, with the control you create empowerment.
With that, you gain confidence and confidence is what is vital to trading success.

I also want to just go over the very last step of the process and explain more clearly what is actually
happening as it may go unnoticed.

When you count down from 3,2,1. On the 1 you have to make it a rule to walk away straight away as soon as
you hit 1. This is because you are focusing on creating a reaction that must be made into a habit. You are
making a non-negotiable rule or contract with yourself that on the 1 you must remove yourself. This part of
the method is the most important.

In the back of your mind when counting down you must have this thought at the forefront of your mind that
on 1 you are done. If not then the previous steps are meaningless.
Conclusion

A simple but powerful method to stop you in the moment from making impulsive and emotional trading mistakes!

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