The Power of Beliefs

"Desire engenders belief: if we are not usually aware of this, it is because most belief-creating desires last as long as we do." Marcel Proust

And the same thing can be said about fear. Fear engenders belief: if we are not usually aware of this, it is because most belief-creating fears last as long as we do.

Emotions create beliefs. Experiences and teachings also create beliefs especially when they are mixed with emotions. Beliefs, in turn, create emotions. Remember past columns where I said the three ways to change emotions are to change focus, beliefs, or physiology.

Belief producing emotion and emotion producing belief is a cycle that turns round and round. Rarely is that cycle built on pure reality. If that cycle is not serving your trading, you need to change something.

Beliefs act as filters for our perceptions. We filter out evidence of what we don't believe, and we clarify and enlarge the evidence of what we do believe. As traders we are dependent on our perceptions. Traders often are so convinced the market is going up or down that they exclude the overwhelming evidence to the contrary until it's too late. In such cases, you need to step back and ask yourself, "What is the market showing me now?" "Has anything changed?" "Do I believe anything that's distorting the picture?"

To what degree do our beliefs about the market, ourselves, and the world in general support us? In order to do anything at all well, we need at a minimum to believe three ideas: It can be done. I can do it. I deserve to do it. Translated into trading terms, it would read: Money can be made trading the markets. I can make money trading the markets. I deserve to make money trading the markets.

Step into those three beliefs for a minute and assume that they are actually true for you. Go ahead. Pretend for a minute if you need to. Notice how your emotions shift for you as you think about yourself trading with those three beliefs. Experience what it feels like to trade with a conviction that it can be done successfully, that you can do it, and that you deserve to do it. Feel how beliefs effect emotion.

There are many different beliefs that effect trading, and we'll be talking about them in future columns. Also we'll be talking about ways to change beliefs that could be limiting you. In the meantime, be aware that it could be a belief that's effecting your emotions and getting in your way as you trade. Or it could be a belief that is supporting you in your effective trading. In either case you can disaffirm or affirm that belief. Beliefs are powerful motivators. What if you could truly believe those ideas that fully support you in successful trading?