The Willpower to Execute Knowledge 

Nature and Origin of Emotional Discipline: The Willpower to Execute Knowledge 

In the 1980s, Victor Sperandeo trained 38 traders, but only 5 of them managed to be profitable. After conducting extensive research, Sperandeo drew the conclusion that the difference between success and failure does not lie in intelligence or knowledge, but in the willpower to execute that knowledge.

Whether it comes to trading, weight loss, or the pursuit of any other goals, the hardest part is never knowing how to do it, but mustering the resolve to take action—and sticking with it. 

Our values often make us reluctant to accept our own failures, which can lead to self-destruction in the markets. 

As traders, speculators and investors, if we wish to achieve consistent success in financial transactions, we need to possess the following personality traits.

First, we must have well-founded self-confidence, trusting that our minds are capable of learning the truth and applying it actively to every sphere of life.

Second, we must have self-motivation and determination, with the ability and willingness to dedicate time and energy to the knowledge of trading and learn the skills of how to trade.

Third, we must have intellectual independence, enabling us to judge for ourselves based on facts when faced with a diversity of opinions.

Fourth, we must have basic integrity, with sufficient resolve to acknowledge and confront the truth about ourselves, the markets and our own judgments.

Fifth, we must sincerely love our work, and recognize that the greatest reward comes from the process of work itself, rather than the fame and fortune it brings.

All these traits can be cultivated, but you must understand yourself and clarify your relationship with reality through persevering determination. In other words, you must figure out what you want from life, why you want it, and how you plan to achieve it. Self-understanding is the compass of life—it will guide you onto the path to success; it is also a beacon. When setbacks and pains, which are inevitable in life, plunge you into hesitation and confusion, it will show you the right direction. Nevertheless, it will only guide you when you strive to move forward.

Emotions determine motivation. Specifically, we are driven by two fundamental emotional forces: the desire to pursue pleasure and the need to avoid pain. When given a choice, the subconscious mind usually allows the need to avoid pain to override the desire to pursue pleasure. Consequently, one will end up failing in the pursuit of goals. Adhering to trading rules inflicts pain, while disregarding them only compounds dissatisfaction and depletes trading capital.

If you engage in self-reflection, I believe you will find that this pleasure-pain conflict is often the root cause of difficulties encountered in moving toward your goals. Assuming you possess the right knowledge but struggle with execution, the problem stems from conflicting motivations—two opposing needs coexisting in the subconscious. More often than not, the need to avoid pain prevails.

Ironically, in such cases, the outcome is invariably the pain of frustration and dissatisfaction. In an attempt to avoid one type of pain, the subconscious mind inadvertently brings about another, further amplifying feelings of frustration and discontent. If this pattern remains uncorrected, it will spiral into a vicious cycle that erodes personal values, undermines achievements, stifles personal growth, and ultimately condemns you to a fate of failure.

To build positive, non-contradictory motivation, the subconscious mind must perceive the pursuit of goals as a pleasurable rather than a painful process.

Success is a goal-oriented dynamic behavioral process that constantly strives for personal growth, achievement, and happiness. The most crucial factor for success is the resolve to pursue goals—in other words, aligning the conscious and subconscious minds toward a shared objective. Many people fail to commit themselves resolutely due to conflicting motivations, which stem from conflicting emotions, and the latter, in turn, arise from contradictory values and beliefs. Once this dynamic is understood, the remedies for positive correction become clear: 1. Identify and eliminate limiting and destructive values and beliefs. 2. Adopt new and beneficial values and beliefs. 3. Eradicate subconscious associations that trigger limiting emotional responses and replace them with new, constructive ones.

To become a successful trader, you must cultivate a mindset where abiding by trading rules is associated with pleasure, while violating them is linked to pain. Nevertheless, even when you follow the rules strictly, losses will occasionally occur, and losses invariably bring a degree of distress. You must understand that such discomfort is a natural and normal part of trading—much like occasionally cutting yourself while shaving. Emotionally, you need to be able to accept that this type of pain is insignificant and transient. You must clearly recognize that success is a process of transformation, and pain is an integral part of that process.