What is your objective as a trader? The thrill of the kill, bragging rights, or make enough money to pay your bills and get out from under your boss’ foot?
Mine is to be a consistently profitable trader. I have come to learn that a narrow focus brings more power to the object of your desire compared to a wide and nebulous effort. Think high powered rifle vs. a shotgun.
In order to reach that state of desire what tools will you use? Hoping and wishing your stock picks are right?
I use my mind to formulate a plan, a road map if you like, to my final destination. My plan details the steps I need to take, based on observation of my personality, mental state and how to interface with the market. I then use my will power to compel myself to do what ever is necessary to reach my goal. Eliminate emotions and trade like a machine.
To be able to trade like a machine, it is necessary to work in such a way that the way you work never differs. You do the same actions again and again in response to the market because your trading system is ingrained into your being that so it is an automatic reflex. Everyone has will power if they decide to use. Whatever obstacles in your way can be overcome by applying your will power to find a solution and implementing it. This takes dedication to reach your goal. Putting the effort in to change or fix whatever it is that is holding you back. Make up your mind to focus on the issues and one by one the problems will disappear.
Concentration is what makes this possible. A trader needs to be able to identify, organize and implement all steps toward their desired goal. You’ll find that when you can concentrate fully on an idea and bring to bear all your mental powers, a solution is easily found.
In broad strokes my daily trading plan is as follows:
- Get into the flow.
- Feel the momentum
- Confirm the markets
- Check the clock
- Enter the trade
- Set stop at exit price (mental or hard)
- Manage the trade.
There are many, many sub sections in each of those steps but the learning of how to achieve all those steps was met a long time ago for me. And the completion of these steps bring me to my ultimate objective to be a consistently profitable trader.
When you can utilize your will power and concentration as tools in the same way as your computer is to be a necessary component or tool of your trading system, I think you’ll find good results will quickly come your way.
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3 comments:
Scott,
That post rings true with me... it seems as if it was meant for me, considering my last two days in the markets! Thank you for your insight as well as the example you set; that success is truly possible with determination and effort. I continue to mine your old posts for "gold," especially when I have down days like the past two which chip away at my psyche.
Scott,
What do you think when you do the same thing one day as the next and get completely different results?
Blue,
Trading the markets is and art and not a science. Unpredictability is what makes it so difficult. However when you have proven your system works for you, then when you follow that system and don't allow deviances, then the results will continue to be good. It's when you tailor your previously working and well thought out system to temporary emotional whims is when you get into trouble.
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