The Secret

What’s the secret of successful traders and how did they make the transition from clueless learner to consistent pro?

When the same tools are available to anyone, why do some people out perform others?

The successful traders have discovered The Secret.

It is not the latest indicator, program or hot tipster. It is something that everyone has inside them already.

The Secret is believing in your method and trading it. Believing to the point of having it ingrained into your brain so that it becomes as automatic as breathing. If the charts do this, then I will do that. Trading your plan means cutting losers, riding winners, managing money and risk well. When you arrive at the point of realizing that your self-discipline can only get you so far and that the next step should be reflex trading then you will have found The Secret.

Having to exercise self- discipline to me means that there is still something inside you that you must fight to control. If emotions are still in control of your trading then you must find a way to turn that fear and greed into a move productive energy. Trading your method as a reflex means that there is no struggle to control wayward thoughts.

Realizing that your success has much more to do with psychology than a software program or indicator means that you need to spend much more time on this aspect then looking at charts wondering if they are going to go up or down. The market is going to do whatever. No one can predict it. When you prepare yourself to think that anything can happen and prepare yourself for the probabilities instead of expecting them then you will be closer to becoming a consistent winner.

Preparing your mind may be a difficult process for some people to do. Maybe you will think it’s ridiculous to put your trust is your brain instead of your mechanical system. Well, if you think about the subject for any length of time, you’ll have to admit that every little command in your life originates from your brain. Your mental power can either be contained and harnessed to achieve your goals or be let to run wild and destroy you.

Training mentally can be accomplished by getting plugged into your consciousness and having true belief in your ability to follow your trading method.

When I wake up every morning I go over in my mind all the various scenarios that will play out during the day. Shorting weak stocks, buying up trends, waiting for a pop to short or pullback to buy, selling a loser when my decision is proven wrong, riding a winner until it stops, adding size to a trade, taking profits when the market offers them up, watching the clock so I know what time it is and when new candlesticks will start, looking at the price ticker and spread. When I replay all these things in my mind I see the same things over and over again. I trust that these are the images I will see during the trading day but I don’t know when they will show up, only that they will. I can visualize what my trading edge looks like in either direction and am thus prepared to act on it without hesitation. Trading becomes a reflex action. If the charts do this, then I will do that. I don’t need to think about it. Doing anything that differs does not happen because it is inconsistent from these ingrained beliefs. You must train your brain to achieve this.

Start by spending the time that you would normally be looking at charts and reading news and watching CNBC, and look inside yourself instead to see what you can improve.

Write down your goals first to make them something real. Find a quiet place free from distractions. Turn off your phone. Close your eyes, open your mind.

Work on them on by one in your mind. Visualize the set ups that you have been successful with and the setups that were losers. Commit them to vivid memory so that you can act on them in the appropriate way in real time during the trading day. Could you spend 1 hour a night to work on this? If it’s more important than charts, will you?

When I review my trades here, I see the same chart patterns every day. I don’t change my methods. I know these have a high probability of working and they suit my personality. I have total confidence in my system and in myself. If the market does this, then I will do that. Reflex trading.

It’s no secret after all.

Believe you can do it.