The Psychology Of Winning & Portfolio Update


You must do work on yourself before you start investing. You need to “program” yourself for success by increasing your self worth.
Having good skills as an investor is only 20% of the equation. You will self-sabotage yourself if your mind-set is weak.
The psychology of our portfolio is to take profits automatically ( options and dividends )

Unfortunately the majority of investors lose money. Investors and traders nowadays have the best technology available, the lowest brokerage fees in history but still the masses lose money. Why? Well, I’m a firm believer that success is 80% as a result of the investors mind-set and 20% as a result of his skill-set. Many people enter this industry hoping that it will be the holy grail. However many forget that you must do the mind-set work first before you start investing. Lets discuss why so many investors fail and also see where we are with our 1% portfolio.

How do you view yourself?. Do you have a healthy self image?. Do you have a strong self-worth? These questions are far more important than choosing a stock or looking up a P.E ratio of a company. Why do I say this?. Well, consciously you want to make profits in the markets but if you have a poor self-image( you don’t know if you can do this because you are focusing on past failures, etc.), then your sub-conscious mind will ensure you don’t succeed. This is why you must do the mind-set work first before you start investing. Let me give you an example. If a brand new investor comes on the scene and his subconscious is holding onto a limiting belief that he will never make money, then his subconscious mind will manifest this limiting belief. Limiting beliefs usually cement themselves into your subconscious because of something you decided to believe in your past. This information is extremely important and is the reason why many investors self-sabotage themselves year after year.

So how do we change these beliefs that are limiting our success? First of all remember that prosperity is located within. It’s not located in the stock markets, the commodity markets or the currency markets. These markets year after year enrich some investors but the masses lose money. Why? The successful investors obviously have the right skill-sets but more importantly, they have the right inner programming. They are programmed for success. ” The importance you place on your self-worth will be the determining factor whether you fail or succeed in investing”. Please read that sentence again. Investors with positive self images and high self worths absolutely refuse to lose money. Usually this is their number 1 rule. They believe they are “worth” the millions they earn every year. Do you deserve $5 million a year from the markets? Do you think you are able to earn this type of income?. Of course you can so let’s go through how we can change your self-image and put you on the road to riches faster.

Personal development material really did it for me. Reading motivational books changed the way I thought and the way I looked at the world. Also reading this type of material changes your self talk. If you don’t like who you are internally, trading and investing will eat you up and spit you out. Here are some tips on how you can improve your self-image which will increase your self-worth.

1. Accept all compliments with thank-you. You never have to feel guilty for receiving a gift or a raise, etc. The more “thank-you’s” you repeat when you receive things, the less guilty you will feel. Accepting things with gratitude increases your self-worth.

2. Dress and look your best at all times. When you look good, you feel good about yourself which will increase your self-worth

3. Always be the first to shake hands when you enter a room or meeting. This shows you respect yourself and others

4. Sit up front at meetings and seminars. Be assertive and confront things when you don’t understand them. Every time you do this, your subconscious will believe that you “value” yourself

5. Walk tall and faster. You will never meet a person better than yourself. Show it starting from now.

6. The “Fast-track” to positive self-worth is never putting yourself down internally but instead saying to yourself that you like yourself. What you think about expands. If you think you are “not good enough”, sooner rather than later it will manifest in your investment results.

On the portfolio front, Gold & Gold stocks are taking a breather but Silver is still showing good strength. Bonds and the dollar continue to rally as the dollar now is trading against the euro at 1.125:1. Look at the screen-shot below of our portfolio where I am showing the underlyings with the biggest gains presently.


What is our psychology with these winning positions?. Do we cut and run and take our profits?. No our plan is to hold our underlyings and make money from dividends and covered call strategies. We “deserve” more than this. We are not going to make 15 to 20% per year selling our underlyings at every opportunity. This portfolio is based on fundamentals, not locking in gains at every opportunity. Our 1% portfolio is programmed to be profitable through diversification across all asset classes, small positions and automatic buy and sell orders than lock in our profits.

Here is a great book the re-enforces the above information

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