The Power of the Unconscious

BarroMetrics Views: The Power of the Unconscious

As the curtain draws down on the BarroMetrics Blog, I wondered what I could leave you with that you would find worthwhile.

One fact stands out: somewhere between 75% to 92% of retail traders lose money. And despite the modern advances in technology, learning theory and psychology, that number has not changed. Those were the numbers when I started trading in the 60s, and little has changed.

So, what needs to happen to make a difference?

A spate of books I recently completed suggest that the remedy lies in two areas:

  • our commitment to self-awareness of our belief systems and
  • to the commitment to do whatever it takes to succeed i.e. to have the necessary grit. Surprisingly, it also includes the ability to quit. If you aren’t willing to do what is needed, you’re better off quitting.

The success formula is well known:

  1. Gather what is known about successful trading.
  2. Identify our current reality and our end game.
  3. Identify what is missing and what needs to be changed.
  4. Plan the actions to make the changes.
  5. Execute our plan.
  6. Review the actions – throw out what is not working and keep what is.
  7. Loop 3 to 6 until we attain our goal.

The process includes being aware of the beliefs that serve us and those that don’t. Once we’ve identified them, we accept the existence of our limiting beliefs, then reframe or substitute them for empowering ones.

The process is not an easy one. It takes self-honesty, work and dedication. Most traders would rather lose money than do what is necessary to change – hence the abysmal success stats for retail traders.

My hope: you are among the winning 8% to 25% winners, if not now, then tomorrow. All the best and thank you for reading my blog.

I have attached the books I referred to in paragraph 4. I’d recommend reading Insight.

Book List


7 thoughts on “The Power of the Unconscious”

  1. What a great final post Ray. At the risk of offending some sensibilities etc I offer the following.
    I have been around trading / hedge funds / retail for over 40 years. Funnily enough I have a piece of paper on it with your scrawl to me on it and on the other side is one of your brokerage accounts. This piece of A4 paper was given to me by you. The broker was a friend of mine. Moving forward in time without doubt have one of the best track records of all time IMO (based on facts).
    That is a short way of saying I know at least some of the players including other legends.
    I am not a trader. A lot of investors might say they are traders (on a selective basis I would suggest).
    Turning to your post:
    Over a say 5 year period I would say that less than 1% of true TRADERS would make money.
    Even most professional trader’s crash and burn and come back under another name if indeed they do come back at all.

  2. hi Ray,
    For those of us who miss your blog, would you send us emails if you find anything interesting, informing us the courses offered by you etc., especially to all your former students?

    May you and your family be blessed in all respects.


    According to my Pastor, who is a prophet and went to heaven before, he said a number of prophets believe that year 2025 will be a very bad year for the world.

    If it is true, what should the traders/investors do now?

    1. Hi Paul

      A quick answer to your query is ‘no’ I won’t be sending out emails.

      For former students, Jay Tan is seeking to create an Alumni Club. Not sure what he has in mind. Once I receive his outline, I’ll drop the students a line.

      I can’t suggest protective action unless I have some idea of what ‘bad’ encompasses and entails.

      Tske care

  3. hi Ray,
    Bad – my understanding is end time tribulation.

    A guy went to heaven, and he wrote a book. He wrote that Jesus Christ appeared before him and warned him about the stock market crash in year 2008. He sold his shares.

    He wrote that there would be another financial crisis or stock market crash coming.
    His book was published in 2015.

    What should traders/investors do if financial crisis or stock market crash is coming (sooner or in less than 8 years time)?


    1. Hi Paul

      So, by bad you mean a financial crisis?

      If so, I can only repeat what I have been saying for many years: the video of July 12 contains detailed advice. First and foremost commit to your investing/tradingsuccess. Secondly, have a learning process, and finally, be prepared to move outside your comfort zone. The effort will time, money, and sheer hard work.

      The advice is simple to give but not easy to follow.

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