Why do we act the way we do?
Why does the market always turn against me?
Why do I lose money when everyone else seems to win?
And why does the guy next door sink a 15-foot putt while I miss a 3-footer?
Ever thought about these questions? Chances are, the root cause is not luck, talent, or some mysterious force conspiring against you. It’s your beliefs. That’s right, the little invisible ideas tucked away in your mind that quietly run the show.
Beliefs are not just harmless thoughts floating around in your head—they are the Captains steering your ship (or, if you’re not careful, straight into a storm). If you’re a sailor venturing into the wild waves of trading, understanding your beliefs is more important than memorising candlestick patterns or the intricacies of Delta.
So, let us dive deep into the origin of beliefs, how they mess with your trading decisions, and, most importantly, how to hack them to steer toward success.
What Are Beliefs Anyway?
Beliefs are not facts. Let us get that straight right away. They are stories your brain cooks up based on your experiences, upbringing, or that one time you stubbed your toe while walking to the fridge and decided, “Life is out to get me.”
Imagine you are playing golf. After three terrible shots from the bunker, you start thinking, “I’m bad at bunker shots.” That’s not a fact—it is a belief. A golfer next to you might have hit a great shot and decided, “I’m the bunker king!” Same bunker, same sand, wildly different stories.
In trading, it’s no different. Say you bought a stock, it tanked, and you sold at a loss. You might think, “I am terrible at trading,” or, worse, “The market hates me.” These beliefs quietly take root, and before you know it, they start dictating how you approach every trade.
Where Do Beliefs Come From?
Beliefs are sneaky. Most of the time, they aren not even yours to begin with. Many are hand-me-downs from your parents, teachers, or that one neighbour who swore “The stock market is just legalised gambling.”
Some come from your past experiences. For example, if you grew up hearing, “Money does not grow on trees,” you might believe wealth is always hard to come by. If a teacher once said, “You are not good at math,” you might avoid learning risk analysis or calculating probabilities in trading.
Here is the kicker: most of us never pause to question these beliefs. We just accept them as gospel truth and let them quietly guide every decision we make.
Beliefs as Filters: What You See Isn’t Always What You Get
Beliefs act like tinted sunglasses. They filter how you see the world, sometimes in helpful ways, and sometimes in ways that make you blind to opportunity.
Take the famous “Free Money” experiment. A guy stood on the street with a sign offering free cash. Most people ignored him, assuming he was crazy. Why? Because their beliefs told them, “Nothing in life is free.” Meanwhile, the one guy who stopped—a panhandler—walked away with cash because his belief was different: “Free money is possible.”
Now think about your trading. Do you believe “I will never be good at this” or “The market is rigged”? If so, you’ll unconsciously filter out strategies or opportunities that contradict these beliefs. But if you believe “I can learn and improve,” you’ll approach every loss as a lesson and keep getting better.
Beliefs in Action: Golf, Trading, and Life
Let’s look at three scenarios:
1. Golf
A golfer who believes “I’m terrible at short putts” will approach every short putt with hesitation, tight shoulders, and shaky confidence. Surprise, surprise—they miss! Their belief becomes a self-fulfilling prophecy. Meanwhile, another golfer, confident they are clutch under pressure, steps up and sinks the shot with ease.
2. Trading
A trader who believes “The market always goes against me” might second-guess every entry and exit, sabotaging their own success. In contrast, a trader who believes “Losses are part of learning” stays calm, analyzes what went wrong, and improves their strategy.
3. Life
Beliefs shape relationships, too. Someone who thinks “I’m not loveable” might avoid deep connections, interpreting every interaction as rejection. Someone who believes “I deserve love” nurtures relationships, reinforcing their belief with every meaningful bond.
When Beliefs Hold You Back
Let us be real: not all beliefs are helpful. Some are downright toxic. They create invisible fences around your potential, keeping you stuck in old patterns.
For example:
• “The market is too risky.”
• “I can not recover from a big loss.”
• “I’ will never understand technical analysis.”
These beliefs don’t reflect reality—they reflect fear. And fear, my friends, is a terrible trading coach.
So, What Is Truth?
Here’s the thing: truth is not absolute. It’s not some magical constant floating out there in the universe. Truth is simply what works.
If believing “I can improve my trading skills” helps you take better trades, then that is your truth. If believing “I thrive under pressure” helps you sink that putt or hit that winning trade, then that is your truth.
Truth is dynamic. It shifts with your goals and circumstances. Your job is to align your beliefs with what works in the moment.
How to Rewrite Your Beliefs
If your beliefs are holding you back, the good news is this: they’re not set in stone. You can change them. Here’s how:
1. Identify the Belief
Pay attention to the little voice in your head. What stories are you telling yourself? Write them down.
2. Question the Belief
Ask yourself: “Is this belief really true?” Chances are, it’s not.
3. Experiment with a New Belief
Pick a new belief that serves you better. For example:
• Replace “I’ am bad at trading” with “Every loss is a lesson.”
• Replace “The market is rigged” with “The market rewards discipline.”
4. Reinforce the New Belief
Act as if the new belief is true. Collect evidence that supports it. Over time, your brain will adopt it as the new default.
The Impact of Beliefs on Your Trading Journey
Here’s the bottom line: your beliefs shape everything.
• What you see: If you believe opportunities are scarce, you will not notice the ones in front of you.
• What you do: If you believe you can not succeed, you will hesitate to take action.
• How you feel: If you believe losses define you, every mistake will feel crushing.
On the flip side, empowering beliefs open doors, spark action, and keep you resilient in the face of challenges.
Final Thoughts: Question the Invisible
Beliefs are powerful, but they are not facts. They are stories—and the good news is, you are the author.
So, ask yourself:
• What beliefs are shaping my trading decisions?
• Are they helping me or holding me back?
• What new beliefs can I adopt to move closer to my goals?
Remember, trading is not just about strategies or charts. It is about mindset. The market does not care what you believe—but your beliefs? They care about everything. Rewrite them wisely.
Your trading journey is like a round of golf. Every shot (or trade) is a chance to challenge the belief that came before. So grab your putter—or your portfolio—and get to work. The possibilities are endless when you believe they are.