Now’s lets get past the boring stuff first
Your Brain is made up of dendrites, neurons etc which is like roads to all the various buildings which hold memory in your brain. Everytime u develop a new habit, more gets created just like a town expanding with new roads. It was believed for a long time that as u age they all start to die off and that was the cause of bad memory etc but science is proving that it happens only because most people when they age, they are inactive and therefore build no new roads. Here is a store of your entire life. We actually never forget anything. It is all there. Only problem is we don’t know how to retrieve it. Thus began the great gurus like Harry Lorrayn who taught association so that we can retrieve those memories when we need it. Anyway, what is stored there are all your experiences,memory, habits, believes etc.
Your Mind ( which is a spiritual part of your brain ) is divided into 3 parts
1) Conscious Mind
– This is where we are most of the time. We think, reason and make decision like, to trade or not to trade, to buy that new car for your wife or not, based on our conscious mind.
2) Subconscious Mind
– This is the hidden part of your mind. It’s the Government, Police, Supercomputer, all powerful… ( you get the idea ). This is where your entire life’s experience is summarised into believes. The subconscious have these believes in files and folder much like an office and uses them as rules to govern your life like the police. It’s job is to protect you. It is not evil but it will make sure that everything will happen according to your believes . Unfortunately this information is stored deep inside and a lot of times, people are not aware of what their subconscious has set as their believes resulting in high profits for the psychiatrist business.
– This part of the mind controls your body functions eg heartbeat, sending platelates to form scars and heal your wounds, sending antibodies to check and fight bad cells , toxins and thankfully also control your breathing ( Can u imagine if breathing is controlled by the conscious mind and you forgot to keep telling it to breath? We will all be dead ).
Think of it this way. We will use the car as an example. Your conscious is the ability to control everything in the car but the steering wheel is controlled by the subconscious. So no matter how much you pump the accelerator, what gears you are using or what gadgets you switched on, you will not get to where u want. Yeap. The steering wheel will decide where you are going and there is little you can do about that.
The conscious mind can handle about 7 thoughts at the same time but the subconscious can handle hundreds or even thousands of events at the same time. So there is no contest between who is faster or more powerful. The subconscious will win everytime. Will power can delay that defeat but will lose out in the end, every time.
There are laws that exists whether u believe in them or not. Just because you cant see air or gravity does not mean those laws will not apply to you.
To demonstrate how powerful is the believes formed from experience let me share some stories
Story 1 – The elephant and its chains
I once went to a circus and saw a huge elephant tied to a small pole with a rope, just standing there. So I wondered why is the elephant so obedient and doesn’t break away from the stick with all of its enormous strength and mass. So they told me this story: once when the elephant was very young, it was tied to the pole the same way. Naturally, it didn’t like that and tried to escape, but try as it might, the rope and the pole were too strong for it. So the elephant eventually gave up.
Later on, when it was older, the elephant still believed it could not escape from the rope, and remained standing in the same place, despite the fact it could then easily escape.
Story 2 – The Fish who thought it Couldn’t.
They once did an experiment where they put a big fish eating fish in a tank. Once they put smaller fishes in, the big fish would chase the small fish around the large tank until it gets eaten. After a few days, they put a big flat glass in the middle of the tank to split the tank into 2. The big fish was on one side of the glass and when they put in small fishes on the other side of the tank, the big aggressive fish just went for the kill but this time, it kept knocking into the glass and hurting itself. They added more small fishes and after a few days, they took out the middle glass. The big fish never crossed to the other side of the tank again even though there was no more barriers.
Story 3 – The farmer who did not know
There was a farmer who decided to run a marathon as he wanted to try something new. So he wore his normal clothing and boots ( no nike or fancy stuff ) and he entered the long distance race. He does not run like the others as he had no training and it was his first time. He shuffles instead of running starting off by being the last. Long story cut short, he won the race. It was discovered that he just kept shuffling and as he had no training he did not know that the body must rest at least 6 hours a day. He just kept going while others took their ‘power naps’. After that everyone did not sleep and just ran using the shuffle. The farmer came 35th at his second race but that is not the point of the story.
Story 3 – Sort of
Everyone thought the 4 minute mile was impossible for many years till one man broke it. Then many others started breaking it as they now believe it can be done.
Moral of the story
Your Believes becomes your reality. It creates your world as to what your subconscious believes to be true , based on past experiences. We have developed a lot of believes as we go through life. Some believes were repeatedly taught to us and some from our own experiences.
Ok. Ok. So what has all these to do with trading? Lets go to some examples of how my subconscious will sabotage my trading results with common believes. Let’s do some Trading !