This article aims to explain what “Limiting Beliefs” are, why they appear, and how they affect traders.
Limiting beliefs: what are they?
In childhood, we are taught limiting beliefs, such as those our parents, the media, and school have influenced us. Our subconscious assumes what is told to us is real, and these beliefs are so deep in our hearts that we don’t even question them. Our failure to achieve our goals and live our values results from these beliefs.
Some typical limiting beliefs include:
- – To make money, I have to work hard
- – Being a civil servant is the safest option
- – It takes time to achieve success
- – Making money requires a lot of effort
- – Renting is better than buying a flat
- – When someone offers me something, I know they are trying to cheat me
In addition, if you focus on trading, you will encounter many of these limiting beliefs:
- – It is estimated that only 5% of investors are successful
- – To make money, you need a lot of capital
- – You can’t live off the markets
- – A strong hand controls the market
- – Before I can become profitable, I have to ruin myself several times
You probably know a lot more.
Your beliefs form your reality, so until you disassociate yourself from your limiting beliefs about trading, you cannot succeed at trading.
Reading blogs or forums, you notice a very negative feeling about the market. You do not stop reading posts asking the same questions or even reaffirming the impossibility of profitability.
- – Is it possible to beat the market?
- – What are the real winners in the market?
- – What you need to know about investing so you don’t die trying
Many people unconsciously take these beliefs they read as reality, and they create limiting beliefs for themselves. It is very common in the Spanish-speaking world to criticize comments that say that it is profitable rather than learning from them (very common). Unfortunately, few positive comments reinforce this issue.
What can we do to eliminate those beliefs?
Among the work processes is one called PCM, which stands for:
- – Possibility: It’s possible to achieve anything
- – Capacity: We can achieve this goal
- – Merit: It is our right to achieve that goal
Therefore, let’s assume that we want to maximize profitability by 50% every year (some will say only if I win 100%, and others will say that’s impossible; well, guess who has the limiting problem).
To identify the limiting beliefs that prevent us from attaining our goal, we must walk through the three pillars (Possibility, Ability, and Merit) and ask questions. It is possible, for example, to believe that something is impossible or that it doesn’t deserve it, but why? He doesn’t believe he has the necessary resources (capital, training) or skills because his family disapproves of speculation. To continue growing, we must ask ourselves until we find the root of the problem and discover what beliefs limit us.
Bottom line
It is then necessary to change those beliefs. We need to change them so that they become part of our reality and become part of us. It may take more or less time to achieve our goals, but establishing new beliefs to help us achieve them is crucial. To be able to see it, we must first think about it and believe it.
