In this episode of Truth About FX, Walter dissects trading consistency, execution, and the psychology of a winning mindset. According, although books can greatly help you achieve success, a new and a much more scientific solution can help you manage higher timeframe charts.
And, did you know that wearing a “unique” headband can actually help you make better decisions?
Download (Duration: 06:46 / 7.75 MB)
In This Episode:
00:39 – winning mindset
01:22 – brainwave entrainment
03:07 – trigger hypnosis track
04:20 – reprogram your thinking
04:34 – muse headband
06:13 – personal record
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter. Somebody wrote in and asked, or they mentioned, they are overall profitable but they are generally aiming for 2:1 risk to reward ratio. They are finding it difficult to be consistent.
I think they’re saying plenty of examples on the conditions in the overall psychology of a winning mindset would be helpful. What would you say to this person?
Walter: This person is basically struggling with the psychology of executing his system with a 2:1 ratio. That is tough. I mean it almost sounds like this person could be better off — I hesitate to suggest this but he could be better off — going with the higher win rate system, the lower risk reward.
The problem, of course, there is it puts a pressure to hit the win rate higher. There’s a couple of things that you can do. One is — I’ll put a link to this on the shownotes for this episode — but one thing you can take a look at is brainwave entrainment.
Brainwave entrainment is a great way to set yourself up so that it’s almost like you see athletes get their mindset right before they enter a big race or play the big game or whatever.
It’s the same thing where you can literally click into brainwave track and what will happen is you are putting your mind in because our mind goes to different phases throughout the day depending on what we are doing.
There are some that are very useful for traders, especially making trading decisions and there are others that are not so useful. It sounds like there’s some anxiety and some confidence issues here.
Some of those can be helped by using brainwave entrainment tracks and so what you do is you listen to the brainwave entrainment tracks then you sit down and make your trading decisions which is I always do.
I find that very useful and it’s good if you are trading the higher timeframe charts because you’ll know when you are going to make your decisions. If you are trading the lower timeframe charts, you could be making the decisions at any place. You can be at a restaurant watching your phone or something, getting out at the 4-hour trade, I don’t know.
If you are higher timeframe trader, it is much easier to do that. Essentially, I think what I would say is that brainwave entrainment before you make your trading decisions will help. And, the other thing is just seed yourself conscious with some positive thoughts about success and about money management.
One of them that I will recommend — and I’ll link it up here for you — but it does cost a small fee. This company that I approach — and I was using their hypnosis tracks but — I found that their trigger hypnosis track was not very good for forex traders.
So, I talked to the owner of the company and he basically made one for forex traders. It only costs 7 bucks. I’ll put that link down there too for those of you who are listening to this and would be interested in using hypnosis. You can check that out as well. You can click on that and download that.
Basically, what you are doing here is, you are trying to erase those seeds of doubt that are sorts of babbling up right now for you by overriding those and putting something more positive in your subconscious.
I would use that too prompt-approach where you want to seed your subconscious with more success thoughts and feeling good about what you’ve been able to do which is just make money out of the markets. A lot of people cannot say that.
The second thing is you would want to make sure that if you do want to make those decisions, you’ve got the right mindset by using the brainwave track. Those two things are what I would certainly suggest. What about you, Hugh, do you have any other ideas?
Hugh: No, I totally agree with that. I thought that the brainwave stuff was a little bit gooey in the beginning but I tried it out and it definitely helps you concentrate, make better decisions. Overall, just reprogram your thinking and I’m still going through the process, obviously, but that really helps. This person should definitely try it.
Walter: What was that toy that you have? That thing that I’ve heard it from you or another person?
Hugh: The muse headband?
Walter: Yeah, the muse headband. Maybe you want to talk about that. I don’t have one yet but I am interested because actually, right when you told me about it, someone else told me about like that same week or whatever. Maybe you can explain that because that gets in brainwave, doesn’t it?
Hugh: Yeah, it does. The technology’s really rudimentary right now. They’re just like measuring your brainwave. It is not measuring the frequency of brainwaves like you mentioned which is obviously more important when you are learning or trading or doing whatever but I think the technology will get there.
Basically, you put these headband over your ears and it measures your brain activity and then during your course on meditation session, you can see how calm your mind was. I think that’s a really good starting point to calming your mind and consciously getting to a state where you are more conscious about what you are doing.
Walter: Wow, that’s cool! So, for example like you could listen to the hypnosis track with the muse headband on and then later on go back and look at the data. Is that right?
Hugh: Yeah, exactly. That is what I was doing. When I did meditation just like freestyle with nothing, I initially got a 30% calmness rating or whatever. So, my mind was only calm 30% all the time and then I stuck in one of those hypnosis tracks and then my calmness would shout out to 90%.
It’s also a good way to just measure stuff. There’s a lot of gray areas in these meditation stuff but this gives you actual numbers you can work with.
Walter: That is amazing. That‘s great. That’s cool because it’s like having a, you go for a PR or whatever, right? For a personal record, or next time I meditate, I am going to try and break 90 or whatever.
I mean, it’s cool that it’s like biofeedback. You learn how to control your body. That’s really interesting. I think I am going to check it out. The muse, it hooks up to your phone or something, right? Is that how it works? Is there an app associated?
Hugh: Yeah, just use it through your phone.
Walter: Alright, cool! I am going to try that. I am really interested in that. Thanks for sharing that. That’s great.
Hugh: Okay, thanks for your advice. See you.
Walter: See you.