The AlphaMind Project
The AlphaMind Project Ltd
‘Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime’.
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For a trader, a system or method is akin to being given a fish, this may feed them for a while, however it is optimising how they are and developing their risk behaviours, skills and processes, and building their ‘inner game’, which enables them to live off markets for a lifetime.
At AlphaMind we believe that developing a broad base of understanding about how markets work and function, how people personally interface with markets and risk, and ultimately how they develop and apply their "inner game" to trading, that is where success comes from.
In our first AlphaMind Podcast of 2021 (attached to this article), we shared 10 powerful insights and pieces of wisdom we felt would help our listeners to improve their chances of becoming more successful as traders. These are focused predominantly on the ‘inner game’ aspects of trading and are based on our own struggles and extensive experiences over many years in financial markets plus thousands of hours of conversations with professional traders in our coaching programmes.
Our 10 pieces of Killer Insights and Enduring Wisdom for Traders
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Make space for yourself and periodically step back from the screens and markets to be more present as a trader, more effective as an individual, and more grounded in the moment.
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Create ‘tripwires’ to break you out of bad habits and negative thinking patterns. A tripwire is a tool or process you create which acts as a reminder to snap out of a negative mindset, or an unhelpful autopilot state.
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Think of trading as a process and develop a process orientation rather than a results orientation. Traders can get good results from bad processes and bad results from good processes, that is the nature of trading. However, it is good processes which matter. Good processes build good habits. Good habits lead to better results over time.
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Make learning lessons of your experiences, digest these and apply them to your work. If you aren’t doing this, then you are missing out on powerful lessons. Use a journal to support this process.
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Look Forward Not Down: A positive proactive mindset is vital. Self-belief and self-trust are vital characteristics for a trader and help foster a proactive mindset which looks forward. If you lack the faith in yourself to succeed, you are more likely to look down. Looking down makes the challenge much tougher.
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There is no such thing as perfection in trading. Avoiding trying to perfect trades: optimise and be happy with ‘good enough’ not perfect.
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Remaining on plan is difficult, but good planning remains vital for trading success. Military strategists say ‘no plan survives first contact with the enemy’, but they also know that ‘planning is essential’. Planning should extend to more than just the trade idea, it includes risk management, contingencies, exit strategies, and much more.
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‘Letting Go’ is the secret sauce or great traders. Practice detachment, learn to walk away, be willing to recognise your fallibility and do not dwell on errors. Practice detachment. Work on becoming detached to redundant ideas, don’t marry a trade or a belief, let go of attachments to outcomes, good and bad. Above all ‘Let go’ of your ego and any attachment to ideals of entitlement.
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Put effort into developing how you generate insights. Be curious and remain curious rather than think you have the solutions. Clearing the head and mind, and taking actions to do this, becomes a powerful source of insights which lead to better trading and more effective performance.
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Understanding your reason for why you are trading, which market you are trading and why you are trading the way you are. Look to other markets, products, styles, timeframes, and considering the options open to you.
AlphaMind do not offer trading or investment advice and do not take responsibility for any investment or trading actions or decisions taken by clients or any observers of our material in any form of media, either now or in future.
Editors’ Picks
EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted
EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.
GBP/USD flat lines as traders await key UK macro data and FOMC minutes
The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.
USD/JPY retakes 153.00 after Japan's weak Q4 GDP print
USD/JPY kicks off the new week on a positive note as Japan's weak Q4 GDP growth tempers bets for an immediate BoJ rate hike and undermines the Japanese Yen. Investors, however, seem convinced that the BoJ will stick to its policy normalization path amid hopes that PM Takaichi's policies will boost the Japanese economy. In contrast, cooling US consumer inflation reaffirmed bets for more Fed rate cuts in 2026, which acts as a headwind for the US Dollar and should cap the currency pair.
Editors’ Picks
AUD/USD remains close to three-year top amid the Fed-RBA divergence
AUD/USD attracts some dip-buyers near mid-0.7000s during the Asian session on Monday, stalling last week's modest pullback from a three-year peak. The US Dollar continues with its struggle to attract any meaningful buyers amid bets for further rate cuts by the Fed, bolstered by the softer US CPI report on Friday. In contrast, the Australian Dollar retains a bullish bias on the back of the RBA's hawkish stance, which further acts as a tailwind for the currency pair.
USD/JPY retakes 153.00 after Japan's weak Q4 GDP print
USD/JPY kicks off the new week on a positive note as Japan's weak Q4 GDP growth tempers bets for an immediate BoJ rate hike and undermines the Japanese Yen. Investors, however, seem convinced that the BoJ will stick to its policy normalization path amid hopes that PM Takaichi's policies will boost the Japanese economy. In contrast, cooling US consumer inflation reaffirmed bets for more Fed rate cuts in 2026, which acts as a headwind for the US Dollar and should cap the currency pair.
Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions
Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.
Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight
The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.
Global inflation watch: Signs of cooling services inflation
Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.
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