Trading affirmations revisited. Part 2

I thought I’d delve a little deeper into some of the affirmations and MP3 I posted a short time ago Fear & Greed Day Trader: Prepare for the trading day 3 to get you thinking beyond the obvious statements and occasionally onto another plane. There are many ways to skin a cat and this is what works for me.

My only intention when I trade is to follow my trading plan

No expectations of direction, profits, the market owes me nothing. I know that I can follow through with my plan and can avoid emotional swings. Simply follow the plan, trade the plan.

Following my trading plan has proven to be very profitable

The machine like execution of my trading plan brings me great benefits

I trade only on the chart and momentum information displayed in front of me

Based on 1000’s of results I know that it works. I don’t need to think about the execution, it’s a reflex action based what I see in front of me here and now. No hoping or wishing.

When I see momentum I know powerful and successful traders have given rise to it

I am quite close behind the traders who are moving the markets. I follow their lead, watching for their signals. I pay close attention to their volume. I let them lead me to the profits.

I am an excellent trader

I have the ability to develop intense concentration when I am trading

My ability to concentrate comes from my years of market experience

Reinforce the self-confidence I have. The more I hear the deeper my belief.

The markets replay the same information over and over again

Chart patterns and momentum give me the opportunity and information to make winning trades

I have the ability to see opportunities as they develop

There is nothing new in the markets. Human pattern behaviour sets the tone. Although patterns and setups may look the same, every moment in the market is unique and I treat those setups as unpredictable. I can only trade the probabilities and cover the downside if I am wrong.

I know when a stock is rising and I know the correct response

I know when a stock is falling and I know the correct response

Sounds quite obvious but it’s not if you have pre conceived notion of a stocks direction. You can be blinded by those thoughts, only seeing reality afterwards.

I take advantage of opportunities to put on winning trades

When I make an incorrect read of market conditions I quickly exit the trade

Quickly exiting a losing trade is part of my plan and thus makes me a winner

These are the reasons I’m here. This is my plan.

It is easy for me to be totally detached from all opinions of others

The opinion of others on what a stock may do is in no way relevant to my trading

I never gather news. My head remains clear to trade what I see along with the momentum. I can turn on a dime. I take advantage of those traders who are rigid in their expectations

I trust completely in my ability to trade my plan

An important part of my trading plan is when I set stops

Setting stops prevents me from taking large losses

I let stops do their work automatically

My plan is so simple to execute I do it automatically. I know where my entry decision will be proven wrong, before make the trade. Through 1000’s of trades I know I do not take large losses. This is because stops work to protect me and take out any emotional indecision associated with being wrong and taking losses.

I mentally take the amount of risk at my stop level out of my psychological bank whenever I enter a trade

I totally accept the dollar loss and being wrong before I enter a trade. Accepting the psychological ramifications of being wrong and losing in more important than accepting the dollar amount of risk. My mind must be free of fear to trade with no distractions.

I am good at constantly recalculating probabilities and odds of opportunities presented

This is what separates me from the traders who can’t keep pace. It is the crux of my edge. It is what success depends on. Processing the information in real time. Making more correct decisions than not. Letting the markets show me when and where the profits are. Following my plan. Never deviating.

I constantly strive to become the best trader I can be

I invest whatever time and focus is required in order to reach my goals

I am an excellent trader

Refinement of my total technique is a constant process. There is always more to learn about myself and trading. Work done toward perfection is done every night. Perfection cannot be obtained only excellence so my homework can only move me closer to the forever out of reach goal. I can never relax in my pursuit of excellence.

sold FAZ

about 5 minutes to go cover AIG

re bot FAZ on the pullback

stopped out AIG for a small loser and short again

sold FAZ, note 5 minute doji

AIG stalled so covered it and long again

continued market weakness will make AIG fall and FAZ, SRS rise. go with the flow until it stalls.

AIG

FAZ

sold AIG

buying on pullbacks gives you a chance to counter the marketmakers shake out schemes.

AIG here. After seeing it shoot up and fall back a few times, I bot at near the end of the pullback on the 5 minute candle. small risk, lets see how it develops

AIG

prices getting attracted to the lows of day again, be ready for wild action if it breaks or a bounce if it doesn't

QQQQ

when the markets look like this I up my quantity and become very aggressive. pick a short, any short or play the inverse ETFs FAZ SKF SRS then play the sharp reversals when they come

QQQQ

Trading affirmations revisited. Part 1

I thought I’d delve a little deeper into some of the affirmations and MP3 I posted a short time ago Fear & Greed Day Trader: Prepare for the trading day 3 to get you thinking beyond the obvious statements and occasionally onto another plane. There are many ways to skin a cat and this is what works for me.

I am a consistent and competent trader

I have complete confidence in my abilities

I have complete trust in probabilities

All work toward a goal to instill supreme self confidence that is the bedrock of any successful trader.

I have no expectation of what a trade outcome will be.

Expectations will lead to disappointments. Disappointments will lead to your demise.

I successfully trade patterns based on probabilities and momentum

Probabilities work out to my advantage more often than not

I am able to make my winning trades far outweigh my losing trades

This is my bread and butter. It’s what I stick to. No need to get any more complicated.

I immerse myself into the market flow

I become one with the market, experiencing the moves without distraction

I am an excellent trader

Getting into the zone, the mindset to be able to absorb and react to the market opportunities. Having no distractions. Total focus on the now moment.

My trading plan has evolved over time into a system that fits me perfectly

This plan is my plan. I know it intimately. There are no questionable bits, no darkness. I can execute it automatically.

My edge gives me an unfair advantage over my competition

I follow my trading plan without deviation

My trading plan tells me when to enter a trade

My trading plan tells me when to take a profit

My trading plan tells me when to take a loss

I have only to trade my simple plan, unburdened by emotions, expectations and excessive information. Stripped down to bare bones, following my plan becomes easy. No pressure.My function has become a mere lever puller in the FNG trading factory where I punch the time clock and put my time in.

I never take big losing trades because it is not part of my plan

I know that I will have many small losing trades every day

I know that losing trades are one part of being a trader

Losing trades do not affect me as they are only probabilities in action

Acknowledging the cost of doing business upfront also known as ”the down side” is just a business axiom. Accepting losses and being wrong therefore becomes only a business expense. The market was also going to produce a loser out of my or anyone elses entry into the market at that very moment anyway. My trading decisions are insignificant to the total market picture.

Knowing that my plan backs up my edge gives me great confidence

I am an excellent trader

Self confidence is the root of skill.

I never have an emotional response to winning or losing trades

The results of my trades are merely outcomes of market opportunities I acted on

The markets will continue to move in the same fashion if I choose to trade or not

Since I have nothing of value riding on the outcomes of individual trades it becomes standard operating procedure to show no reaction to the conclusion of a trade. A winner gets the same treatment as a loser –nothing, now on to the next trade. I didn’t MAKE a winner or loser, the markets produced it, I only acted of the convergence of signals. If I didn’t act on the signals, the same opportunity was there for anyone else to see and deal with. It’s all only market information.

sold that little FAZ bounce

sold AIG bounce with 5 minutes to go

ENER, GG bounce wwas amemic, lets go with FAZ again long

ENER

FAZ

bot ENER

bot GG

stopped out FAZ , BX bot AIG

FAZ

AIG

short BX

took a few dollars off VRSK

once more into FAZ

bot VRSK

some support here so I'll sell or cover for some flat trades AIG SKF FAZ

back into SKF,AIG, FAZ .

SKF

AIG

FAZ

taking those momo move profits in FAZ, SKF

FAZ

SKF

AIG stalled so I'll bail out and get into something that is moving like SKF

short AIG

bot that FAZ pullback so long again

not a lot of conviction at this moment in time so I'll sell FAZ and cover GG taking profits in each.

FAZ

GG

I'm watching the levels on the QQQQ to see if it breaks the days previous low. FAZ ramping up in anticipation. GG going the opposite way. Of course these days more than ever things can reverse and bounce huge so be prepared for anything.

QQQQ

FAZ

GG

Success simplified.

Not being one to want to work in a complicated way, I make it a point in any endeavour to simplify things down to their easiest workable form that I am capable of.

I have found that the simplest way is the easiest way to see through to the finish when time vs. effort vs. cost is on the line.

My system for momentum day trading is very simple. I trade with the momentum when a stock is in sync with the markets. I go long on green candles and sell or short on red candles. I frequently trade the new highs or lows of the day. I don’t gather news or information on a company. That is a waste of time for me as it’s pointless to engage in conjecture about the reason a stock is moving. The reason why it’s moving higher or lower is ultimately because more people are buying or selling it. Who cares why.

I’m not hung up on playing various chart patterns aside from dojis. After all they usually tell a story about shifting momentum. And momentum is really the most important aspect of my style of trading. Everything else stems from it. Buys, sells, stops.

When you can trade with a simple mechanical edge, it frees up your mind to be able to focus on the complexities of the markets and order management, acknowledge and act on what is happening in front of you at the moment to the benefit of your account balance.

You can train yourself to process vast amounts of information and it’s much easier to do so when you execute a simple trading system. This will take a lot of work and continual effort on a daily basis to keep your efforts in top operating condition.

Aside from your actual trading edge, what I feel is vital to your trading success is developing your psychological edge. The singleness of purpose that drives you to believe in yourself via your method under any circumstance. To know that you will be successful in the end.

Perseverance is the first element of success. In order to persevere you must be ceaseless in your application. It requires you to concentrate your thoughts upon your undertaking and bring every energy to bear upon it, keeping focused until you have accomplished your aim. Absolute faith in your ability to be successful, to learn, develop, practice and carry out your trading plan so that finally you are in control. To quit short of this is to weaken all future efforts.

Consistently successful people in any venture don’t have any secret that keeps them going except that they have learned to use their will power to get what they want. From will power comes perseverance, the doggedness to use your mind in any way to achieve your goals and not give up. Never give up. The same thing that got you back on your bike again after you fell down and hurt yourself when you were a kid is the same thing that is still available to you now. It’s the determination to get to that place which will make you happy. Your goal. That must be your focus. That must be the point where all your thoughts return to. Like an arrow to a bullseye.

You must attack the problems areas as would an engineer. Analyze the process and results with a dispassionate mind. Develop a solution(s) to overcome the problem. Test the solutions under real conditions on a small scale. Analyze the results. Modify as necessary. Implement the solution with no deviations. Monitor the results on a continual basis.

Always be striving to achieve progress in your methods. Be forever in a state of mind that lets you learn, never think you know it all.

Don’t be afraid of the application bit. Even wrong steps along the way point you again to the correct track. In this business we are fortunate to have unlimited opportunities in which to try out what works and find out what doesn’t in an immediate way. We can control the risk to a level that is acceptable to us. We don’t need to ask anyones permission. There are no gatekeepers in your way. It’s only you and your plan. Your decisions.

You will find that once you get the glimmer of knowledge that you are on the right track and are developing a trading edge and plan that fits your world, it quickly becomes the first step on your way to your ultimate goal. It becomes something that you can build on and also fall back to and collect your wits.

Simplicity in my mechanical trading edge was the starting point for me. I didn’t want to be bogged down with indicators because where would it stop? More and more and more to try and predict the unpredictable. That seemed to me to be a losing proposition. Who would I blame when things went wrong? The 5 or 10 indicators that said it was a sure thing? No, don’t go down that route.

Success comes from following your trading system. If it has been tested thoroughly and produced good results, then it is up to you to put in into play. You will then get paid accordingly.

Your mind and unbroken concentration in the application of your plan will get the you the results you desire.

cover USEG

sold that pop and try a short for the last play of the day

USEG

re bot USEG

cover USEG

sold FMX and CRIC as well

FMX

with the markets feeling weak I'll take th eprofits and rejoin the shortside in USEG

back long in USEG

FMX heading up to new highs. i posted this a few minutes late though

CRIC provided some good trades early in the day, now looks to be ramping up again

CRIC

USEG looks stalled or at least resting so I'll take the profits and see which way it's going to go

like OPTT earlier this week , the odds are USEG will succomb to gravitys effects sooner or later. It has been a great trader on the way up though. I sold here, taken profits and am short now. If it breaks to new highs I'll cover it and go long again.

cover OPTT

sold OPTT and short

sold AONE