Creating a belief that "I am a consistent winner" is the primary objective, but like my intention to become a runner, it's too broad and abstract to implement without breaking it down into a step-by-step process. So what I'm going to do is break this belief down into its smallest definable parts and then give you a plan to integrate each part as a dominant belief. The following sub-beliefs are the building Thinking Like a Trader 185 blocks that provide the underlying structure for what it means "to be a consistent winner."

I AM A CONSISTENT WINNER BECAUSE:

1. I objectively identify my edges. 2. I predefine the risk of every trade.

3. I completely accept risk or I am willing to let go of the trade. 4. I act on my edges without reservation or hesitation. 5. I pay myself as the stock market makes money available to me. 6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.

These beliefs are the seven principles of consistency. To integrate these principles into your mental system at a functional level requires that you purposely create a series of experiences that are consistent with them. This is no different from the boy who wanted to play with dogs or my desire to be a runner. Before he could play with a dog, the boy first had to make several attempts just to get close to one. Eventually, as the balance of energy in his mental system shifted, he could play with dogs without any internal resistance. To become a runner, I had to create the experience of running in spite of everything inside me that argued otherwise. Eventually, as the energy shifted more and more in favor of this new definition of myself, running became a natural expression of my identity.

Obviously, what we're trying to accomplish here is far more complex than becoming a runner or petting a dog, but the underlying dynamics of the process are identical. We'll start with a specific objective. The first principle of consistency is the belief, "I objectively identify my edges." The key word here is objectively. Being objective means there's no potential to define, interpret, and therefore perceive any stock market information from either a painful or euphoric perspective.

The way to be objective is to operate out of beliefs that keep your expectations neutral and to always take the unknown forces into consideration. Remember, you have to specifically train your mind to be objective and to stay focused in the "now moment opportunity flow." Our minds are not naturally wired to think this way, so to be an objective observer you have to learn to think from the stock market's perspective. From the stock market's perspective, there are always unknown forces (traders) waiting to act on price movement. Therefore, from the stock market's perspective, "every moment is truly unique," even though the moment may look, sound, or feel exactly the same as some moment logged away in your memory bank.

The instant you either decide or assume you know what's going to happen next, you will automatically expect to be right. However, what you know, at least at the rational level of thinking, can only take into consideration your unique past, which may not have any relationship to what is actually happening from the stock markets perspective. At that point, any stock market information that is not consistent with your expectation has the potential to be defined and interpreted as painful. To avoid experiencing the pain,

your mind will automatically compensate, with both conscious and subconscious pain-avoidance mechanisms, for any differences between what you expect and what the stock market is offering. What you will experience is commonly referred to as an "illusion." In a state of illusion, you are neither objective nor connected to the "now moment opportunity flow."

Instead, you become susceptible to committing all the typical trading errors (hesitating, jumping the gun, not predefining your risk, defining your risk but refusing to take the loss and letting the trade turn into a bigger loser, getting out of a winning trade too soon, not taking any profits out of a winning trade, letting a winning trade turn into a loser, moving a stop closer to your entry point, getting stopped out and watching the stock market trade back in your favor, or trading too large a position in relationship to your equity). The five fundamental truths about the stock market will keep your expectations neutral, focus your mind in the "now moment opportunity flow" (by disassociating die present moment from your past), and, therefore, eliminate your potential to commit these errors. When you stop making trading errors, you'll begin trusting yourself. As your sense of self-trust increases, so will your sense of selfconfidence. The greater your confidence, the easier it will be to execute your trades (act on your edges without reservation or hesitation).

The five truths will also create a state of mind in which you will genuinely accept the risks of trading. When you genuinely accept the risks, you will be at peace with any outcome. When you're at peace with any outcome, you will experience a carefree, objective state of mind, where you make yourself available to perceive and act upon whatever the stock market is offering you (from its perspective) at any given "now moment." The first objective is to integrate as a dominant belief, "I objectively identify my edges." The challenge now is, how do you get there? How do you transform yourself into a person who can consistently think in the stock market's perspective? The process of transformation starts with your desire and your willingness to refocus on the object of your desire (self-discipline). Desire is a force. It does not have to coincide or agree with anything that you currently believe to be true about the nature of trading.

A clear desire aimed squarely at a specific objective is a very powerful tool. You can use the force of your desire to create an entirely new version or dimension to your identity; shift energy between two or more conflicting concepts; or change the context or polarity of your memories from negative to positive. I'm sure you are familiar with the saying, "Make up your mind." The implication of "making up our minds" is that we decide exactly what we desire with so much clarity (absolutely no lingering doubts) and with so much conviction that literally nothing stands in our way, either internally or externally. If there's enough force behind our resolve, it's possible to experience a major shift in our mental structure virtually instantaneously.

De-activating internal conflicts is not a function of time; it's a function-focused desire (although it can take a considerable amount of time to get to the point where we really make up our minds). Otherwise, in the absence of extreme clarity and conviction, the technique of self-discipline, over time, will do the job quite nicely (if, of course, you're willing to use it). To get there, you must "make up your mind,"

with as much conviction and clarity as possible, that more than anything else you desire consistency (the state of mind of trust, confidence, and objectivity) from your trading. This is necessary because if you're like most traders, you're going to be up against some very formidable conflicting forces. For example, if you've been trading to get high from the euphoria of catching a big move, to impress your family and friends, to be a hero, to fulfill an addiction to random rewards, to be right about your predictions, or for any other reason that has nothing to do with being consistent, then you'll find the force of these other motivations will not only act as an obstacle making the trading exercise I'm about to give you veiy difficult, but it could very well be strong enough even to keep you from doing the exercise at all. Remember the boy who had no desire to be like the other children and interact with dogs? In essence, he decided to live with the active contradiction between his minimally charged positive belief that not all dogs are dangerous and his core, negatively charged belief that all dogs are dangerous. He had the ability to perceive friendly dogs, but at the same time found it impossible to interact with them. Unless he desires to change it, the imbalance of energy between these two beliefs will stay exactly as it is for his entire life.

To even start this process, you have to want consistency so much that you would be willing to give up all the other reasons, motivations, or agendas you have for trading that aren't consistent with the process of integrating the beliefs that create consistency. A clear, intense desire is an absolute prerequisite if you're going to make this process work for you.