If you ever feel shell shocked and dazed by the first few trades of the day, perhaps you should try some mental warm up exercises first to get your brain thinking at market speed before you even step out of bed.
The moment you wake up, keep still and keep your eyes closed. Now since you’re still in a relaxed mood with no issues intruding into your mind, it is easier to focus on some important trading issues.
Start with visualizing what your edge looks like, long and short. Form the chart images in your mind. See the red and green candles. See the volume bars. They may be ascending triangles breaking to new highs. They may be pull backs from new highs that give high probability entries. They may be a break down past intraday support levels. What ever are the patterns that give you your profitable trades, your edge, go through them slowly in your mind. Interact with the candles. See where your entry point would be. Note momentum moves and big candles. Imagine where a good place to take profit would be.
Now go through the same exercise visualizing some losing trades. Reverse the entries on all the profitable trades you just visualized. Notice how doing the wrong thing at the wrong time gets you into trouble quickly. Burn the images of what to do and what not to do into your mind. Get the trade signals right so when you see them you know it’s time to execute.
Next go through your trading plan. What steps do you take before, during and after a trade. In your mind, write them down in point form. For instance,
I confirm the markets are trending,
I enter the trade.
I set a stop.
I wait for an exit signal.
I manage my trade.
This will help cement them into your subconscious so that it becomes automatic after a while.
Next try some positive thought exercises. Try these affirmations or make some up to suit yourself better. Here’s an MP3 I recorded. http://www.badongo.com/file/16686985 You can load on your ipod and listen. Repeat the words yourself to ingrain them in your brain.
- I am a consistent trader.
- I have complete confidence in my abilities.
- I follow my trading plan.
- I know the markets today are capable of doing anything.
- I am prepared to trade what I see.
- I will have winning and losing trades today.
- I set stops immediately after I enter a trade.
- I will never add to a losing position.
- I have complete confidence in my abilities.
- I have supreme concentration.
- I will immerse myself into the market flow.
- I will take what the market offers up to me.
- I know what my trading edge looks like.
- I will not hesitate when my system gives me a signal.
- I have complete trust in probabilities.
- I will buy when my system signals me to buy.
- I will sell when my system tells me to sell.
- I will trade responsible size, never risking too much.
- I am moving closer to my goals everyday.
- I am a skillful trader but always striving to do better.
- I learn from my mistakes so I do not repeat them.
- I have complete confidence in my abilities.
- I am an excellent trader.
All of this will give you time to focus and concentrate on the images and actions that will present themselves during the course of the trading day. Knowing that you have seen your favoured chart formations and momentum situations beforehand can give you greater confidence in trading them the correct way in realtime.
Keeping your plan in the forefront of your mind will keep you on track so that you can minimize mistakes and keep emotions at bay. Your system tells you when to enter and exit. You are only there to pull the trigger.
Developing mental toughness so that you know what to do and are not lost on the fringes will pay you back in not just trading but throughout lifes challenges.
Sure it’s not easy but if you apply yourself and work hard at it, you will be pleased with the progress. Sure it’s not conventional but if it was so easy and normal to look at charts and predict the future, everyone would be a trader.
Anyone can become a successful trader. All it takes is a lot of work.
Always strive for a more and for better understanding of yourself as that is where the key to success lies.
** note when downloading the audio clip go to the page bottom. You may have to wait for 60 seconds. Let me know if there are any problems accessing it**
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