TMOT
TMOT
& Examples
Submitted by readers of The Mental Game of Trading
and The Mental Game of Poker
Preface
Earlier this year I asked readers of my books to share their own Mental
Game stories and examples as a way to continue to learn from each other.
Thank you to everyone who submitted! While I couldn’t include every
submission, I’ve compiled a selection of examples and stories for your
use. I have changed the names of each person represented to protect their
privacy.
On the whole I think these are solid examples of how to successfully use
the tools in my system. If I was working with these individuals in a
coaching capacity there are probably some tweaks and advice I would
give, but the point is most of you are working on these tools independently
and these stories and examples will give you a window into how others
are successfully using the tools to help themselves.
Remember, while reading my books and looking at examples like these are
an important part of your learning, they are no replacement for using the
tools yourself. If you want to make progress, you must do the work.
Complete the Maps and Mental Hand Histories. Create Injecting Logic
statements and use them again and again in key moments to correct your
emotional reactions. Use your Strategic Reminders again and again, as
well. And when you make progress, take a moment to acknowledge and
feel good about it. Then refocus and keep moving your Inchworm forward
step by step.
Jared
May 5, 2022
Table of Content
Jonathan 4 Kate 14
• Background • Background
• Pre-market Routine • Mental Hand History
• Mental Hand History
• A-to-C Game Analysis Matt 15
• Background
William 9 • Goals
• Goals • Mental Hand History
• Mental Hand History • Perspective
• Anger Profile
• A-to-C Game Analysis Jack 20
• Background
Peter 12
• Fear Exercise
• A-C Indicators
• Mental Hand History
• A-to-C Game Analysis
Jonathan Jonathan always starts his day with a ‘Pre-market Routine’. This is him
journaling his emotions to prepare him for the trading day ahead.
When I have done my pre-market preparation, I have an EXPECTATION that whatever I trade will go Every time I win, it is always followed back by loses that make back the win. I can never seem to
my way. It is as if I have already predicted the outcome, and I do not see myself being wrong when I have a good win streak because I keep getting emotionally skewed after a win that I cannot think
am in this.. of A-Game. Because of this, it creates a fear of losing because I can't seem to fathom logically anymore.
losing because I am already in a perfect state, in a perfect trade. I also expect to capitalize on ALL
2. Explain why it makes logical sense that you have this problem, or why you think, feel, or react
of the trade just because I am in my A-game.
that way
2. Explain why it makes logical sense that you have this problem, or why you think, feel, or react
that way I think because I am not used to winning but more to losing that this feeling is foreign to me. Like I
haven't learned how to "win" properly and I like to delve in my own greatness that I can create
It makes sense I have this problem because I am very dedicated to my pre-market analysis that I money out of thin attend with juke click of a button.
NEED it to trade well. Because of this need, I suddenly have an inflated sense of EXPECTATION that
the next trade being in this A-Game state from my pre-game preparation will ASSURE me a win on 3. Explain why the logic in Step 2 is flawed.
the next trade.
3. Explain why the logic in Step 2 is flawed. Feeling the rush &winning a trade that you do not have ownership of the value amount of does not
make sense. Winning in a sense is not a win until you take out the profits and tum it into a
withdrawal.
With variance in the market, nothing is sure. No one even knows if the market will go up or down
because of variance.
4. Come up with a correction to that flawed logic
4. Come up with a correction to that flawed logic
Trading wins are a reminder that you are doing a great job fallowing your trading plan, controlling
your emotions, and continuing your mental game progression. But it is by no means a measured
Expectations cannot arise in the market. With variance being present, no one can predict the future. your greatness of being a skilled profitable trader.
You just have to deal with the hands you are dealt with.
5. Explain why that correction is correct
5. Explain why that correction is correct
No one can control the market or your results regardless of what you do. Nothing can be expected A professional profitable trader is being able to consistently withdraw profits from the market. Wins
or assured in the mark.. The only thing you can expect or assure is perfect decision-making and inside the trading account are not wins, but just assurances that you are headed the right way. Don't
perfect execution of your trading plan. You can attain this by focusing on the present, the process, be excited that you are doing well, be proud. Keep your head down, continue what you are doing.
your preparation, your analysis,your following of trading plan, and your adaptability.
A-to-C Game Analysis - Jonathan
William
Goals and Plan Worksheet Mental Hand History
Every time I have a red day, big or small, I’m moving backwards and losing time.
Moving backward means that I’m failing to live up to my goal of be good/recognized as a good
trader.
2. Explain why it makes logical sense that you have this problem, or why you think, feel, or react
that way
Effort, especially in trading, is not correlated with results. Effort in the wrong direction is useless
anyways.
I expect my progress to not include drawdowns or failures. I have a false understanding of the
variance at the start of my trading, this led me to a lot of pain, which then caused me to not execute
my strategy when I actually had one that could be profitable, and then hangs over my head now.
I cannot blame myself for having to go through this learning process. This was my learning
process. Now is different. My old mistakes have nothing to do with now. I have learned from them.
I’m here standing on their shoulders.
2. Improving focus
It's critical for me to avoid autopilot mode. Here are a few of my key A-C
indicators that I use to check myself:
Objectives:
C: I have no clear objective for what I'm doing right now.
B: I have an objective, but I haven't verbalized it.
A: I have a written, purposeful objective for the outcome I want right now.
Meetings:
C: I'm checked out, only chiming in to feel heard.
B: I'm attentive to what's going on, but not focused on the outcome.
A: I know what outcome we want, and I purposefully drive towards it.
Kate
Mental Hand History
If confidence is an emotion like the others, then I swing back and forth 1. What is the problem?
between low confidence to overconfidence. More often than not, I start
the day with high confidence and am excited by the picks I have chosen to I am frustrated and can’t accept it when I start off the day in the red. I come into the day with high
confidence and end up forcing trades and getting in early so I don’t miss those opportunities. When
trade. This excitement leads me very often to execute early, thinking I I am stopped out I can’t believe I made this mistake, start to second guess the idea, watch as the
need to get on the trade now as these are probably the best prices of the trade eventually goes my way and quit out of frustration!
day. 2. Why does the problem exist?
I believe I have the skills to make great trades; to make profitable trades! On average my picks
If the trade works out immediately, then I tend to get overconfident that work 75% of the time, so I think I am highly intelligent and capable of hitting these moves.
my target will be hit and I start to do other things – anything other than
making a decision before the target is hit. I believe I know what the 3. What is flawed?
market is going to do now and therefore don’t need to watch. I do have a strategy that works very well over time, yet I disregard this strategy because I think I will
miss the move if I don’t get on now! I lose my mind and confidence plummets so low I quit and
think by coming back tomorrow I will be better.
If, however, the trade does fail, anger builds as I search for a new
opportunity. If I remain in overconfidence mode, now I start to execute 4. What’s the correction?
mediocre trades thinking these will easily make my money back. Often
Perfection is coming in day in and day out and always making money and making the most money I
these fail too. That’s when my confidence swings quickly back to the can from my picks. I need to focus on making perfect decisions according to my strategy. I may
lowest confidence level and I stop trading for the day. I will watch the not always be right, but if I keep the process in focus, then in the long term my strategy will pay
out.
market, all the while fantasizing if I just did this or that I would be in a
much better position (stable confidence) and not be constantly thinking 5. What logic confirms the correction?
about the mistakes made today. I pass good setups because I am already I will lose and sometimes I will choose wrong picks. I can’t achieve perfection each day, but the
mentally checked out and there is no way I will add to my misery. amount I will lose in the long term will be dwarfed by the profits overall if I remain focused on the
process and what I can control.
Matt
When I first started trading on a real account my first trade was on the
nasdaq futures. This happened just because I tried a trade on the demo
account, forgot about it only to find a big profit days later. At 20$ a point
the possibilities were endless when the thing moves. I was hooked.
Traded everything from oil futures, precious metals (even Palladium
Brief description and some trading background futures!) to individual stocks, mainly tech stocks, my favourites. When I
I have been trading for almost four years at the time of this writing. I am a reached a peak on the “I cannot deal with my brain anymore, my mistakes
mostly an intuition based technical discretionary trader though I are automatic and out of control” kind of thoughts I tried to keep away
sometimes start positions based on a system when the conditions are from futures trading and kept to stocks only. The C-Game drawdowns
favourable (these are usually started with a longer time frame in mind). were less severe and I spent less time in front of the screens but soon I
My technicals are pretty simple as I exclusively trade in fibonacci ratios realized the fear and tilt were there all the same even with the lower PnL ś .
across different time frames. Technicals were never a problem since the I kept pressing on and on and I realized that a new framework was needed
way I trade allows me to be very precise on my entries and exits with very to deal with all the crap I had inside. After reading Jared ś book the first
high hit rates and with very limited and defined risk. The problems and thing I did was to bring the Nasdaq futures chart back. Not the micro one.
limitations were always on the psychological side. The big one. The first one. It was time to face and overcome the problem.
Personality wise, I have what I consider to be a far from ideal psyche to What was holding me back?
trade. I am very, very demanding on myself. I self criticize a lot and I do The fear, the tilt, the lack of confidence driven by PnL fluctuations were
mean a lot. I have the tendency to be very attached to the past. I am holding me back. The manifestations were always the same causing the
extremely impatient. I am also prone to changing my mind frequently. It is same mistakes: Canceling the good intuitive trades out of fear of
very easy for me to do so. I don t́ like uncertainty very much and I am also watching them go against me, manually closing the trades because of the
prone to fear due to frequent changes of mind and tilt, due to self criticism shitty psychic and losing conviction after a loss of perspective. In extreme
and attachment to the past. After blowing up my account why didn t́ I just cases all of these manifestations would loop automatically, causing my C-
quit? Well, because of my edge. My intuition is very accurate allowing for a Game:
very high success rate and this is why I needed to keep going. All I needed
to do was to fix those mistakes. Always those same mistakes holding me • FOMO would lead to out of place entries when fear made me quit on
back, day after day, after day. the good, limit, patient ones that would have worked perfectly with
minimal movement against entry;
• Fear would make me cut the trades short because the risk was now If I lost it I need to stop, leave the screen and regain it before acting (or
higher with the stop further away. Already in an emotional turmoil I reacting). If one mistake is made the idea is to avoid repeating it. One
wouldn’t handle the slightest move against the position even if the thing I have learned is that it ś not the first mistake that messes everything
trade was directionally correct ultimately reaching the target; up, but the cascade that follows. It needs to be prevented by any means
necessary.
• Negative self-talk after the premature manual close, tilt would take
over. Revenge trading would follow. Cycle begins again. Repeat, repeat, The framework is divided in three parts:
repeat.
1. The intuitive, patient entry;
The change 2. Accepting the shitty psychic but listening to intuition;
In order to implement a new framework successfully I knew I had to 3. Maintain the perspective and conviction.
change some things in my life. I became a student of how new habits
were created or reinforced and bad ones attenuated. Learned some tricks For each of them there is a specific MHH, but first let's resume the process
like having a time and place to do something and showing up for it to according to the goals.
reinforce the identity or how to make good habits more appealing and bad
ones harder to accomplish. Started new habits where there were none
(everything was chaos). I now wake up early and exercise later in the
morning. I enjoy jogging and not a day goes by without it. I need it now.
Lost weight, feel healthier and more driven. I also spend more time away
from the screen.
Bad entries (out of interest points or levels) can result in fear, risk intolerance, lack of confidence,
tilt, overtrading, revenge trading and all kinds of mistakes and mental game setbacks. This is the
first part of the framework and the most important since it prevents bigger manifestations of fear
and tilt. A good entry is a patient limit order placed on an important technical level where I am
comfortable entering the market. This entry can be driven by trending flow or an intuitive “it ś
there”. It is natural to feel a little afraid of being wrong but there is no place for the shitty psychic in
high probability areas. These entries require a patient state of mind and awareness that we don t́
need to be trading all the time. When the right wave approaches, we need to catch it and don t́ look
back. Once we are in it, it ś time to implement the next steps of the new framework.
2. Explain why it makes logical sense that you have this problem, or why you think, feel, or react
that way
If I don t́ enter the market patiently on the right levels according to intuition or market flow there is a
high probability I am giving in to FOMO, chasing price, trading PnL, closing positions manually out
out fear and tilting. I will be more exposed to a mental shutdown with automatic and uncontrolled
reactions. This is the old, standart software and it needs to be replaced. It is of most importance to
respect the first step of the framework in order for the second and third to be possible.
• Keep in mind the new framework and the importance of replacing the old one.
• If I m
́ feeling stressed and losing perspective or a mistake was made it means that it ś time to
leave the office and do something different to regain it (go for a quick run, go outside for a bit,
meditate for a few minutes). If I cannot leave the office turning off the platform or minimize it
might help.
• Return only when awareness and perspective is regained.
When afraid or unsure, accept the discomfort as a necessary part of the process and bring the
framework to consciousness. If every checkbox is ticked there is no conscious reason to feel that
way. Hold and endure the discomfort without fear. It is necessary to overcome these difficulties in
order to reach the unlocked state of flow. Process is everything.
FRAMEWORK STEP TWO - AVOIDING THE SHITTY PSYCHIC (MHH) FRAMEWORK STEP THREE - MAINTAINING CONVICTION AND
PERSPECTIVE (MHH)
Cancelling pending orders, tightening stops or manually closing positions out of fear are a direct Lacking conviction or switching stance on the market based on meaningless price retracements
consequence of listening and reacting to what the shitty psychic is saying about the future: that a due to manipulation or other technical factors is a problem by itself, as it might disrupt the original
loss is certain. These reactions are inadequate and can originate more mistakes and a negative plan. These price movements are usually illogical, not supported by fundamentals, fast, scary and
spiral of emotions. Following every tick, stress tends to build until a reaction finally happens. they tend to cause emotional reactions. Reacting to them is only acceptable if intuition alerts that
Moments later: “I did it again. What was I thinking?”. money can be saved by getting out and re-entering at a more advantageous price in the original
direction. If it is only fear, reacting will cause a mistake. There will probably be no plan and the
2. Explain why it makes logical sense that you have this problem, or why you think, feel, or react same incapacitating fear that caused the mistake will prevent me from acting correctly in the
that way aftermath.
This is the brain’s standard software. The fight or flight mechanism is very much alive and when the 2. Explain why it makes logical sense that you have this problem, or why you think, feel, or react
threat is anticipated, a mental shutdown happens. It ś just a matter of time. that way
In the new software to be installed there is no place for this behaviour anymore. Operating in an
If I don t́ enter the market patiently on the right levels according to intuition or market flow there is a
environment of probabilities makes it necessary to let the trades play out without interference.
high probability I am giving in to FOMO, chasing price, trading PnL, closing positions manually out
Intuition can and should make me act, but not fear. Satisfaction in doing the right thing and
out fear and tilting. I will be more exposed to a mental shutdown with automatic and uncontrolled
enduring such difficulties until the target is hit is the best feeling in trading. Respecting the process
reactions. This is the old, standart software and it needs to be replaced. It is of most importance to
moves my inchworm forward.
respect the first step of the framework in order for the second and third to be possible.
3. Come up with correction to that flawed logic. 3. Come up with correction to that flawed logic.
• Keep in mind the new framework and the importance of replacing the old one. • Keep in mind the new framework and the importance of replacing the old one.
• If I m
́ feeling stressed and losing perspective or a mistake was made it means that it ś time to • If I m
́ feeling stressed and losing perspective or a mistake was made it means that it ś time to
leave the office (for the rest of the day if need be) and do something different to regain it (go for leave the office (for the rest of the day if need be) and do something different to regain it (go for
a quick run, go outside for a bit, meditate for a few minutes). If I cannot leave the office turning a quick run, go outside for a bit, meditate for a few minutes). If I cannot leave the office turning
off the platform or minimizing it might help. Screen locking the problem area using software off the platform or minimizing it might help. Screen locking the problem area using software
makes it more difficult to interfere with positions too. makes it more difficult to interfere with positions too.
• Return only when awareness and perspective is regained. Anything goes. Process is everything. • Return only when awareness and perspective is regained. Anything goes. Process is everything.
Whatever it takes.
4. Additional thoughts about the process and how to accomplish it 4. Additional thoughts about the process and how to accomplish it
When the shitty psychic starts screaming in my mind, let him scream without reacting to what he Evaluate what is going on. What changed? Is intuition alerting the move is over and a reversal is
says. He will go away and everything will be quiet again. Reminding myself of the importance of the happening? Is the fear of giving back gains taking over? The importance of not reacting is of most
new framework provides some calm to the situation. Hold and endure the discomfort. It is normal importance. It is better to give some money back to the market and to do the right thing than to
and needed for successful operation in the markets. Only by overcoming the difficulties, I can reach make a mistake and tilt over it. Reminding myself of the importance of the new framework provides
the state of flow. some calm to the situation. Hold and endure the discomfort, away from the screens if needed. It is
normal and needed for successful operation in the markets. Only by overcoming the difficulties, I
can reach the state of flow.
The changes I have been making in my life are because of trading. I
believe at this point that trading has made me better. Some personality
traits are becoming more rounded and polished. I feel more disciplined,
focused, process oriented, capable, motivated and organized overall. The
skills I have been improving reach other areas. My mood doesn't swing as
much as it did before and I feel more centered since this latest push for
change. I believe I have reached a level of awareness that will allow me to
fully unlock my potential as the old framework is slowly replaced by the
new one.
Jack
Thank you Jared for the book and your thoughts.
I think as much help as tools like the map, the Mental Hand History, etc.
give, there are also some basic concepts that have helped me – like
realizing there can be flaws in how I learn from trading and I can do
something about this.
Another concept is “stable confidence”. I knew over- and under-
confidence were issues for me. And it sounds dumb in hindsight, but I
never thought of dealing with them by focusing on “stable confidence”.
I just needed some direction. To improve stable confidence, the idea of
reminding myself often of what I do well has made a big difference. When
I am over-confident the reminder is of the “DO” part of the “do well” –
so do it, don’t be careless. When I am under-confident I remind myself of
the “WELL” part – I am good at specific things.
As a result of the above concepts my win rate is up more than 10% across
the last 200 trades. But more importantly, trading isn’t “work” in the way it
was. A lot of the struggle and frustration are gone. Simply knowing that
there is a process available to deal with these things, and not keep going
in circles, has changed everything.
Thanks again.
Thank you for sharing!