022 - Take the Ego out of Trading, with Guest Rolf Schlotmann

Do you want to know how to overcome emotional trading? How to prevent fear and greed from sucking your account dry? In today’s Trader’s Mindchat Show, Mike and Melissa interview Tradeciety and Edgewonk co-founder Rolf Schlotmann and dive deep into learning key trading habits to keep the ego out of trading and help ensure long-term success.

Also, Mike and Melissa compare Rolf’s journey with Robin Sharma’s book “The Monk Who Sold His Ferrari” and discuss important factors that create a more present state of mind when goal setting. Also, they tackle Investing Mastermind Warren Buffett’s 5/25 Rule and debate how to apply this rule and how to narrow down from your list of 25 goals to the five you feel most passionate about. Then they help give actionable ways to create a roadmap on reaching them.

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Top Ten Highights from our TMC Interview with Rolf Schlotmann:

1) #1 Predictor for success is curiosity. Try out new things, have passions outside of trading.

2) Most people chase big dreams but what you need to do is create your perfect average day. Do following exercise: think about what you need for your perfect average day. The simple moments. Having breakfast with your kids, what type of business are you running, are the people you are interacting with healthy and stimulating. Food you eat. This exercise will show that you already have the perfect day within reach and you don’t need millions in bank account to reach it. Motivating and inspiring.

3) Don’t let trading results correlate with your self-worth. Many traders who have a bad trading day will take it out on themselves, people they interact with, and have a negative impact on their day.

4) Have the beginner mindset. Nice to not be in expert or teacher mode. When starting something new it is stimulating your creativity and challenges you.

5) Take the emotions out of trading by thinking, what emotions are coming up and what did I just do to cause that? Break my rules, too much risk, etc.

6) Don’t have distractions when trading. Listen to yourself. We have become so detached from ourselves that we lose the connection with ourselves not just in trading but in our life.

7) Meditation doesn’t have to just be in a small room. Read Arnold Schwarzenegger’s biography that meditation can be during a workout, or however you are able to bring mindfulness and awareness into your daily life. You don’t just meditate for five minutes and cross it off the list for the day.

8) The inner voice can sometimes be harsh “recommends Napoleon Hill’s book “Outwitting the Devil.”  The inner voice isn’t always telling the truth so important to identify it and rise above it.

9) Stopped drinking coffee before trading, since a stimulant and creating more inner turmoil. You don’t need that when you are doing a mental activity against yourself.

10)  You need trading rules and have discipline. But ok to introduce something new or change a variable. Explore and help make it exciting and fun. Introduce one new thing at a time (i.e. setting a new stop loss) and do it for 30 trades. Then analyze the results.