How to Control Your Mind Talk and Transform Negative Thoughts to Positive

Success requires a great degree of thoughts control. Hence, you need to be pumped up and believe that you have what it takes to trade successfully. Motivation, positive thinking, and persistence are the main keys.

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Mind Talk

According to research, the average person conducts between 50,000 and 60,000 thoughts per day. A vast majority of these thoughts are mind talk (or self talk), meaning self-perception or one’s personal evaluation of his or her self-worth. Psychologists estimate that about 80% of these thoughts are negative. If nearly all of one’s thinking is negative, their outlook and performance are most likely to be poor. Likewise, the exact opposite is true. This is why positive mind talk is crucial in everything you do.

Thus, before a trader can expect to succeed, he needs to take control of his thoughts. This means developing performance enhancing thoughts (PETs) instead of performance interfering thoughts (PITs). Examples of PETs may be “you have what it takes to become successful” or “this is truly a challenge worth taking.” On the other hand, PITs might be thoughts as “the market is out to get me, I’m cursed!” or “are there really any chances of making money and becoming rich?”

Another important aspect of thinking is attribution theory, the way a person explains good or bad events that happen in their lives. Likewise, there are three concepts that either make a person optimistic or pessimistic:

  1. Perslonaization – how personal people take events
  2. Permanence – the length of time one dwells on an event
  3. Pervasiveness – how contextually or globally one makes the event

Our level of perseverance depends on our mind-talk. In order to build performance, we need to develop positive thinking. This begins with monitoring our thoughts. First, we must understand that thoughts are habitual and automatic. Hence, we think our thoughts, they just don’t happen to us. Second, we must learn to take responsibility for our thoughts and then take control.

Keep a “Thoughts Journal”

Doing this begins with creating a “thoughts journal” which involves:

  • Writing down our thoughts as we notice them in either one of two columns: PETs or PITs.
  • Making a note of the time and situation of as many thoughts as possible
  • Reviewing our journal after seven days

Once we go over the journal, we compare our total amount of PETs with PITs as well as the situations that triggered them. Also, we will find that we have recurring thoughts, those that happen over and over again. We then need to analyze them and see what the cause behind them are. After we have established awareness over all of this stuff, we then need to take control of ourselves.

The process of canceling our negative thoughts and replacing them with positive ones is known as thought stopping. As you may have heard it said before, we are our own worst critics. By thinking bad thoughts, we are only being self-critical and these negative beliefs only exist with in ourselves, nobody else. In essence, our negative thoughts are only what we make them out to be, nothing else. Although our inner-critic provides much of our feedback, a lot of it is more harmful than good. We must use our inner feedback wisely as if a coach is giving it to us – not as a personal attack. Imagine this coach wants to see you succeed and thus, will deliver the message in a positive way to assure that happens.

Transforming Negative Thoughts to Positive

Positive ThinkingSo imagine, two beings inside of you: the inner-critic and the coach. The inner-critic will try to tell you that you can’t trade successfully but the coach will tell you that you can. Converting negative thoughts into positive ones is essential if you really want to survive. Here are some examples:

Negative: I was an idiot not to take on that trade.
Positive: When I see another trade like this, I will act on it diligently.

Negative: Don’t be a fool and blow this trade.
Positive: Relax and give it some thought, then execute it.

Negative: Lately, the market is trying to make me lose all my money.
Positive: The market doesn’t know I exist so how can it sabotage me?

Negative: It seems like everybody is a better trader than I am.
Positive: Everyone is different, surely enough they all have lost at one time or another.

Negative: Working is nothing but stress.
Positive: Working is challenging and the adversity will help make me a better trader.

So, how can you convert negative thoughts to positive ones? As your inner-critic shouts them out, your coach should correct them. Hence, you must:

  1. Identify it – pay close attention to your thoughts and pick out the positive, negative, and neutral ones.
  2. Cancel it – as a negative thought crosses your mind, it is only coming from your inner-critic. Create a picture or an icon like a red stop sign and say “STOP!”
  3. Replace it – take that negative thought and change it into a positive one. What should your inner coach say.

Published by

LuckScout Team

"Whether you think you can, or you think you cannot, you are right." - Henry Ford


  1. Hi,

    This article describes me best. Whenever I have negative thoughts, and I see my running trade, it will usually be a losing trade. But whenever I am neutral or having happy thoughts, my trades will usually tp on its own when I see my trades after few hours.

  2. hi

    Do most of the signals and strategies apply to both the stock and market? Are there any major differences that i should consider when i trade in stock market?
    i asked because some stock professional trader believes”while major trading principles are the same for any freely traded vehicle, there are a lot of
    details pertinent to each of them”.

    if he is right . please tell me what are they?
    thanks a lot
    ps: thousands thanks for putting the search option in the web site

    1. Hi Behnam,

      I don’t know about the other systems, but you learn here can be applied to any market including stock market. Liquid market all behave the same, unless you want to trade a market which is not liquid enough.

  3. Hi,

    Can you take a look at CADCHF? On weekly the up trend is tired, and last week’s close was bearish engulfment, albeit barely touched BB upper band. I am not suggesting a crash soon, but I think it is worth watching.

  4. Given recent rumblings from the RBA and AUD’s trade relationship with Japan, it seems correct to be watching for a too strong short setup soon. If the candles say yes, it could yield a good trade for 2-3 months! After all, one thing you can say about net exporters is that they do rather like to export. I’m sure Japan would enjoy cheaper commodities imports too.

  5. Hi,

    For AUD/JPY weekly chart, the almost formed too strong sell setup is formed right after a strong bull from 12/10 til 09/11.

    Can i add the above as another reason for not being the perfect too strong setup?

    Sorry if i’m wrong as i’m still not too clear of how to define previous strong trend

    1. Hi Nick,

      Thank you. I am good. Hope you are doing well too.

      USD/ZAR has a strong uptrend on the monthly and weekly time frames. On the daily you can see a strong “W” pattern, and the last closed candlestick has closed below the pattern resistance line. There is nothing important on it. If you have any specific questions, please ask.

  6. Some exceptional articles recently thank you .
    Also when making decision’s being not tired, well hydrated and eat brain food. I find exercise is also very important!
    Good week end to all best John

  7. Wow, I’m very grateful found this site. Not only you teach us the trading method, but also the physiological aspect as well. You seem to talk to me personally.

    Today my USD/CAD’s S/L is hit. OK it’s because I’m not discipline on only trade when there’s TOO strong pattern. But as you wrote: trading is challenging and the adversity will help make me a better trader.

    Thank you!

  8. Hi!

    I quite appreciate all that you doing, taking a holistic approach to trading. We have to be good students to apply all that you are teaching you so that the benefits can be seen in our trading.

    Kindly review CADJPY. I see a continuation of the uptread after a strong uptread that forms a resistance level and a continuation pattern just little above MBB and the last Friday, 05-12-14 candlestick breakout of the resistance line, closed above it and touched the UBB.

    Thanks for your time

  9. I will like to know if it is the open/high, close/low, open/low, close/high of both bearish/bullish candlesticks we take to determine both resistance and support levels and trend lines?

    Thanks once again

  10. Kindly review CADJPY. I see a continuation of the uptread after a strong uptread that forms a resistance level and a continuation pattern just little above MBB and the last Friday, 05-12-14 candlestick breakout of the resistance line, closed above it and touched the UBB.

    Thanks for your time

  11. Hi,

    Thanks for your analysis.
    I also analyzed AUDJPY and on 4H chart I found it’s broken resistance line (it has triangle pattern too), on 1D chart it’s formed high-wave and in 1W chart it has bullish trend so I think it’s gonna go up again. But, the last closed 4H candle shows a strong sign of reversal (red arrows shown on the pic below). I’m not sure which one is stronger, could I hear your opinion? Thanks a lot!

    1. Hi Maria,

      AUD/JPY is moving in a tight range on the 4hrs chart. This can be ended to a strong movement usually. The short setup you have located on 4hrs chart can take the price down to the range support level at least, which is about 85 pips below the current price. It will take the price lower if it breaks below the range support.

  12. Hi,

    l created a basic video on some things l have picked up on so far from following you on LuckScout. It is a video to help ‘condition’ the mind and help us (novice traders) to stay on the right track and keep away from giving up on. Please watch and if you are happy with what’s in it, maybe you can direct others to watch it as well when you next talk about trading psychology.

    Here is the link:



  13. Hi,

    @Ted the video is superb. I love it. Thanks a lot for the inspiring message. C’est tres bon. Mucho gracias amigo.

  14. Hi

    Since the market is quiet, Here is another video for other followers to while away the time.

    Still talking about TRADING MIND TALK.

    I hope it helps someone. Maybe you can share it with the others if you think its worth it.


    1. Hi

      I’ve redone Trading Mind Talk II. Here is the link
      Please update LuckScout. I’ll probably take the old video down from youtube if you can kindly update this site. I do this because 1) it’s a really fun way to stay disciplined 2) l enjoy it and 3) l really hope it helps fellow novice traders who need it and find it useful.

      Thanks and Cheers!


  15. I would like to recommend a book on this topic : Napoelon Hill – Think and Grow Rich. it does not deal with trading but it can be applied to get to the positive state of mind.

  16. Hie

    Thanks for your motivational and educative articles. Please be assured you are not only a mentor but a life mentor too. Apart from your articles also helps in our day to day lives.

  17. It is several months, whcih I am following your site. If the only thing, which I have learned from your site, is this article, it deserves.

  18. Thank you so much for the above articles and thanks a lot to you Ted for the Mind Talk Videos.
    And warmest regards to all LuckScout professional and novice Traders.

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