Neuro-Associative Conditioning: Programing Your Trading Mind'

NAC
Neuro-Associative Conditioning
Programing your Trading Mind
Wednesday, March 9, 2011

NAC gets its foundation from NLP
NLP or Neuro-Linguistic Programing was the primary psychology

and language strategy utilized by Dr. Milton Erickson to shift the
internal representations and therefore, the experiences and
behaviors of patients.

NAC Defined:
The science of Neuro-Associative Conditioning is a SYSTEM
that describes the PRCESS of change in human beings and is
based upon the premise that there are two determining
reasons for human behavior.
1: The need to Avoid Pain

2: The desire to Gain Pleasure
Ask yourself right now, How is pain avoidance affecting me every day in the market?

Have you EVER.......
Exited a trade when it moved against you thinking you were going to avoid the bigger loss of your
stop getting hit, only to find out your stop DIDNT get hit and the trade hits target?
Why did that happen? I traded outside of my ROE and allowed

myself to break the rules.
Simply Put? Pain Avoidance!
AND this will continue to be your pattern until you

CONSCIOUSLY DECIDE to change!
So, if youre not satisfied with your current trading performance STOP TRADING
immediately and decide to make the change...

How the Brain Works
See Signal - Trade Signal
In order for the brain to efficiently evaluate how to rapidly

accomplish these two tasks you must create
Neuro-Associations
Associations within the nervous system that are used to instantly
determine the meaning (pain/pleasure) of situations, people, things,
sounds, emotions, etc.
These neuro-associations are the directing force of all

human behavior AND your trading decisions. Right now if
you THINK about losses you are more than likely
manifesting/creating those losses real time.

Between Stimulus and response lies
our freedom to choose
-Stephen Covey-
We are all literally 6 inches from success.....assuming your

trading model has a positive expectancy.
The STIMULUS for a trader is visual
Market puts in a double top

Bearish divergence on the RSI
Doji candle
The RESPONSE is executing the trade

Trading is SIMPLE but its not EASY
I know some of you are shaking your heads right now but it really is true.
When you have specific rules that dictate your RESPONSE to what youre
seeing on the chart (your stimulus) it really comes down to only one question.
Did you follow your ROE?
If the answer is YES then congratulate yourself Regardless

of the outcome.
Trading systems have losing days!

Its OK.

What are your Rules of Engagement
Defining the rules......
Consider the IF - Then Conditional Statement........
IF......this occurs then look for this

IF......this is in play then go here
IF......this also happens.......
THEN......take action

Developing Your Trading Syntax
Rules for entry Rules for STOP Placement:

The Point at which you KNOW
Setup your analysis is wrong........
Signal
Rules for PROFIT taking:

When your analysis is correct, when do
you take your position off?
How Traders THINK THEIR WAY to a
Successful Trading Career
Is it possible to remove emotion from your trading?
Develop a trading syntax using IF - THEN
Create Neuro-Associations to the VISUAL patterns
that we all watch EVERY TRADING SESSION
Train your mind to take the SAME ACTION on
EVERY OCCURRENCE........
Rinse and Repeat......with consistency
One more thing....the power of your mind and repetition can work AGAINST you as well. If
youre losing money right now and choose not to change then youll probably continue to lose
as it has become habit.... Programming works BOTH WAYS!
The Past DOES NOT Equal the Future
-Anthony Robbins-
This is one of the most powerful statements a person can

commit to memory. But you must truly believe it. Remember
we act on our consistent Thoughts and these thoughts are not
always constructive and empowering.

Beliefs and Controlled Focus
Focusing on only that which WE CONTROL allows us to

stop wasting mental energy on those things we can not.
Markets are not living, breathing things that are out to get
us. As a screen-based trader you can be an invisible
warrior taking advantage of the fact that NO ONE knows
your position.

Guided Imagery
There was an experiment conducted at the Olympic training center
involving 30 golfers. They broke the golfers into 3 groups and gave them
the following instructions.
Group 1 Visualize Sinking the Put
Group 2 Visualize Narrowly Missing the Put
Group 3 Practice Putting on the Green
The Results are in....................

Guided Imagery
Of the 3 groups the results break down like this:
Group 1 Visualize Sinking the Put: Increased their

Accuracy by 30%
Group 2 Visualize Narrowly Missing the Put:

Accuracy DECREASED by 21%
Group 3 Practice Putting on the Green: Increased their

Accuracy by 11%

Guided Imagery
I know, I know you still NEED more proof!
A study published in The Behavior Therapist found that when a tennis player
was trained for ONE WEEK to transform his pessimistic self-talk INTO
positive phrases such as stay cool and concentrate on the next serve, his
winning percentage in deuce games improved from 29% to 60%!!
TRADERS! The body believes the mind!
RE programing your mind takes TIME and CONVICTION but will absolutely
have a positive impact on your trading and your bottom line.
HOW do you apply this to your trading???

Think of a Time When Everything Happened
Perfectly.......
The signal set up just like you had seen in your testing.
The market did exactly as you expected it would
You enter the trade...Place your stops...Place your targets and the market went to target.
A ONE WAY Train...NO PAIN just profit...now....
How did you feel?

What was your posture?
What was your breathing like?
WHat was your hand doing on the mouse?
Your feet?
How did you react when the trade hit target.

Are you starting to feel some of those feelings
again NOW?
Through NAC we can re-create those feelings by recalling the

associations.....Now have there been times when the EXACT same
setup presented itself and instead you hesitated......the market moved in
your direction.....hit your would be target for your imaginary profit........
WHY DIDNT YOU REACT??

Were you LESS capable?
Did you know LESS about the markets that day?
More than likely it was a result of your STATE....your

trading state and your ability or IN-ability to call on
the resources we used when we took the first
trade....the WINNER.

Our Trading STATE is the Result of the interplay of 2
key Elements
What we choose to mentally focus on, and just how we

choose to focus on it. (think internal dialogue)
Our physiology (meaning the use of our posture, our

breathing and our patterns of movement.

Discipline Paves the Road to
Accomplishment
If we all did the things we are capable of doing, we

would literally astound ourselves.
-Thomas Edison-

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NAC

Wednesday, March 9, 2011

NLP or Neuro-Linguistic Programing was the primary psychology

Wednesday, March 9, 2011

1: The need to Avoid Pain

Wednesday, March 9, 2011

Why did that happen? I traded outside of my ROE and allowed

Simply Put? Pain Avoidance!

AND this will continue to be your pattern until you

Wednesday, March 9, 2011

In order for the brain to efficiently evaluate how to rapidly

These neuro-associations are the directing force of all

Wednesday, March 9, 2011

We are all literally 6 inches from success.....assuming your

Market puts in a double top

The RESPONSE is executing the trade

Wednesday, March 9, 2011

Did you follow your ROE?

If the answer is YES then congratulate yourself Regardless

Trading systems have losing days!

Wednesday, March 9, 2011

Consider the IF - Then Conditional Statement........

IF......this occurs then look for this

Wednesday, March 9, 2011

Rules for entry Rules for STOP Placement:

Rules for PROFIT taking:

Rinse and Repeat......with consistency

This is one of the most powerful statements a person can

Wednesday, March 9, 2011

Focusing on only that which WE CONTROL allows us to

Wednesday, March 9, 2011

Group 1 Visualize Sinking the Put

Group 2 Visualize Narrowly Missing the Put

Group 3 Practice Putting on the Green

The Results are in....................

Group 1 Visualize Sinking the Put: Increased their

Group 2 Visualize Narrowly Missing the Put:

Group 3 Practice Putting on the Green: Increased their

Wednesday, March 9, 2011

TRADERS! The body believes the mind!

HOW do you apply this to your trading???

How did you feel?

Wednesday, March 9, 2011

Through NAC we can re-create those feelings by recalling the

WHY DIDNT YOU REACT??

Wednesday, March 9, 2011

More than likely it was a result of your STATE....your

Wednesday, March 9, 2011

What we choose to mentally focus on, and just how we

Our physiology (meaning the use of our posture, our

Wednesday, March 9, 2011

If we all did the things we are capable of doing, we

Wednesday, March 9, 2011

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