Welcome back to our discussion on Napoleon Hill’s work The Law of Success in 16 Lessons.

If you’re just joining us or would like a refresher on the Laws of Success, they are:

1. A Definite Chief Aim
2. Self-Confidence
3. Habit of Saving
4. Initiative and Leadership
5. Imagination
6. Enthusiasm
7. Self-Control
8. The Habit of Doing More Than Paid For
9. Pleasing Personality
10. Accurate Thinking
11. Concentration
12. Cooperation
13. Profiting by Failure
14. Tolerance
15. Practising the Golden Rule

“Just as the oak tree develops from the acorn, or the bird develops from the egg, so will your material achievements grow out of the organized plans that you create in your imagination.” Napoleon Hill.

In this article we will explore the concept of Imagination. The word imagination means different things to different people; to some, it invokes the idea of day-dreaming, or focusing on something other than the task at hand. In works such as The Secret by Rhonda Byrne, or The Teachings of Abraham by Esther Hicks or The Secret of Ages by Robert Collier, the word imagination is imbued with immense power, playing a substantial role in the Law of Attraction. However for the purposes of this discussion, we will focus on Hill’s definition of imagination:

“The act of constructive intellect in grouping the materials of knowledge or thought into new, original and rational systems.” 

When most people think about the traits of successful traders, “imagination” is not usually near the top of the list! I remember thinking that traders were like robots, staring intensely at a dozen computer screens at once, tracking hundreds of different markets and making thousands of decisions every day! This doesn’t sound like the kind of person who sits around using their imagination! However, using Hill’s definition from above, traders are frequently “grouping materials of knowledge together”, forming new systems as they build strategies and plans for making money from the markets. Let’s explore these processes through the context of the “Definite Chief Aim” of making $10,000 per month from trading.

The first time that I used my imagination in trading was when I first heard about the idea of being an Active Trader. I had already delved into passive investing (buying right at the top of the market of course, and watching my investment plummet), but the idea of taking a more active approach appealed to me. I was working in a bookstore on minimum wage at the time, having just failed out of university. I had no qualifications or skills to draw on, so my income potential was limited! The idea of trading really appealed to me. It wasn’t difficult to imagine earning more money, or having more free time, or being able to afford a better car or to go on holidays or to buy things that I wanted. I imagined myself as a multi-millionaire, with money coming in each week whether I worked or not, choosing my itinerary for each day and using my wealth to do good in the world. Don’t underestimate the power of imagination at this early stage of trading – without the power of imagination and the ability to conceive of a better future for myself, I never would have embarked on this wonderful journey into the world of trading.

My imagination frequently came into play while I was building my own trading system. There is no one, single correct way of trading, and my Safety in the Market studies taught me multiple ways to trade. I could take swing trades, I could trade against support and resistance levels, I could make price forecasts, and I could do it all on multiple time frames on multiple markets. In the end, I needed some experience in the markets before I could decide on my methodology. After gaining experience by taking trades, I was able to imagine the kinds of trades that I wanted to take. I didn’t want to be a day trader, for example, sitting in front of the computer for long, stressful days. Instead, I imagined being able to trade the larger moves, so that once I was in, I didn’t need to spend all day in the office. I could monitor my trades briefly each day and then move on to other things. By using my imagination this way, I was able to design a trading system that matched the lifestyle I imagined and desired. This trading system is taught in Safety in the Market’s Active Trader Program.

Finally, no trading system is created perfect. Over time, as our knowledge and our experience grows, we can make subtle improvements to our trading system to increase the efficiency and effectiveness of our plans. This all starts by considering our current trading, and then imagining ways that we could improve it! You might ask yourself questions such as “how could I make my system more efficient?” or “how could I make my trading easier”, for example. For me, I imagined myself only looking at the markets at fixed times each day, to free up my schedule to play golf or watch a movie or go for a massage without having to wonder all the time “what is the market doing?”

These are just a few examples of how we can use imagination as traders. For those who would like to explore this concept a little bit further, the following action items are worth considering.

Action Items:

• Imagine for a moment that you have become a phenomenally successful trader. What does that look like? How much money are you making? How has your life changed?
• Imagine the perfect trading system for your personality or circumstances. What does it look like?
• Think of one change that you could make in your current trading to help you become a more profitable trader. Safety in the Market students can email our Trading Tutors Support Service if you would like some help with this.