The Four Agreements is a book written by Miguel Ruiz
What was shared with you before is not The Four Agreements to which Im referring.
This book is about self-development and cultivating a specific value system in your life. The essence of the book is simply this, "however you are as a person, transfers in your trading". In you can honor the four agreements as set out in the book, the habits and values that emmante, will transfer in your trading.
A simple example: If you lie or if you make promises and dont keep them or if you say yes when you really mean no to anyone or if you lie about your trading account or what you make or did - that habit transfers in your trading. How? When you place a trade, because it is not in your nature to keep your word or mean what you say, you will not stick to your trading plan. That's the habit the book will curb. Agreement #1 is that we must always be impeccable with our word. If you cant do that, you cant and will not stick to your trading plan. Thats how it transfers.
Combating the psychology of trading is mastering the Four Agreements in that book. If you can do that, your trading will become better. Notice when I am in a trade I stick to the plan no matter what unless the market says to change. So I listen and I obey without question and stick to it, because Ive mastered agreement #1.
If as traders we lie about our success in the market - our trading account will tell the truth regardless of what we say. So the more we lie, the worse we will be at trading and we will never get better at it until we change that habit about ourselves.
Ive been extremely transparent with all of you in this room and henceforth, my trading successes. This is not luck - its the cultivation of the right habits and because of the right habits, consistency is guaranteed.
Its not easy, like I said it took me SIX years. But overcoming that battle will put you ahead of everyone in the market from a psychological stand point.
Trading is 80% Psychological 10% Skill and 10% Mental Ability. So you see where your biggest hurdle is - the psychology and we all know how hard it is to break bad habits, for example smoking.
