This business project requires you to think at a deeper level than you might be used to. It is designed to help you find out where you stand with your own emotions when it comes to the market and give you an awareness of how you might respond.
Traders are required to have a high level of self-discipline. As much trading is done alone, it is important for a trader to understand and be clear as to what is motivating them to build wealth, especially after they experience a setback.
This exercise is designed to give you a glimpse of the emotional intelligence a trader must arrive at in order to trade.
Simply answer the questions below and submit them once completed. Many of these questions are your personal view, and there are not necessarily right or wrong answers. What is required is for you to be honest with yourself. You will not be judged by your answers. What we want to see is if you have given deeper consideration to these questions than you normally would. The more specific you are the better.
Life Path & Goals
- After working through Course 1 how would you define your life purpose?
- Define how you will live out your life purpose. Be specific.
- What will you need to put in place in order for this to happen?
- What is your higher purpose? i.e. The cause greater than yourself?
- What things are blocking that from happening?
- What will you need to do to break through those barriers?
- Now define your time frames to accomplish the tasks you have just outlined.
- Define for yourself what wealth is.
- What are your top 5 life values?
Expectations when it comes to the market
Mark Douglas in his book “Trading in the Zone” writes about how a little boy when he meets a dog for the first time will draw conclusions about dogs subject to how that experience goes. If the dog is happy and wags it tail and is well behaved the boy frames a notion that dogs are a positive experience. If the dog bites him then it frames a notion that dogs are a negative experience.
His argument is the same with the stock market. We come to it with pre-programmed thinking as an adult, but what if we could come to the market without any expectations? Would that help the psychology of a trader? The questions below are to help you identify any pre-conditioned thinking you need to work through as a trader would if they decided to trade.
- What expectations from your family have been put on you when it comes to trading?
- What expectations from your friends have been put on you when it comes to trading?
- What expectations from your work colleagues have been put on you when it comes to trading?
- What trading have you done before?
- If applicable, what was that experience like?
- How do you handle your personal emotions when the pressure is on?
- Is this an area you need to work on?
- What situations cause you to stress?
- What situations cause you to fear?
- What situations cause you to feel greedy?
- What situations cause you to feel anxious?
- Do you worry about money? If ‘Yes’, what specifically causes you concern?
Your current abilities, wealth reflection & personal assessment
- Assess what your plans are in the three areas of wealth creation (business, property and trading). Do you have plans for all three?
- Are you accomplished and proficient in one of them so far? If so, what is working for you?
- What are your tangible assets?
- What are your intangible assets?
- What is your active income?
- How do you plan to build passive income?