Friday, January 08, 2010

Think less - succeed more.

Although I can't prove it in regards to what other people that are top performers in their field think about when they are in the zone, my experience clearly points out that the more I keep focused on executing my plan, the better results I achieve.
The less static that enters my head, the more time flows uninterrupted and the easier it is to stay in the now moment.
As I've said in previous posts I listen to music( link in right hand column) through headphones so that gives my brain something of an endless stream of information to process different than what I'm seeing on the screens. I don't hear barking dogs, crying babies, lawnmowers or helicopters. I believe listening to these rythmns occupies the part of my brain that is more easily distracted. That in turn allows me to pursue my objectives and implement my trading plan with laser like focus with what's left.
Yesterday for example was a busy day of trading, but the first hour and a half passed like it was only a few moments. I don't remember anything of that period except that a hunger pang alerted me it was time for breakfast at the end. I was totally absorbed in the moment.
My thoughts during this time were only of the steps I take to execute my plan. A constant churning of trades. No outside distractions. Very little thinking going on when I am on autopilot like this. It's a very easy situation for my brain to cope with. Easy times are stress free times.
I would think that top athletes in their field have the same tunnel vision. Focus on the next pitch, serve, corner, goal. I believe this is what separates the over performers from the under performers.
Knowledge. Preparation. Execution. Focus.

Another key for me is that I break up my day so that I can mentally rest and then prepare for the next session.
Step 1 - 7 am PST. In the morning the moment I wake up I visualize how my edge looks like both long and short. My order entry, setting stops, winning and losing trades. My plan.
Step 2 - 7:30 am I start my day one hour after the open
Step 3 - 9 am is the start of the dead zone which is lunch time in New York. I pay less attention to the markets and take breakfast. I review my actions, the plays that came my way and make adjustments if required. Some days there is no dead zone or it is very short.
Step 4 - 10:45 or certainly 11am things start to move again. Back into the flow and zone.
Step 5 - 12:30 I start to clock watch. Possibly lighten up on the # or size of positions.
Step 6 - 12:50 with 10 minutes to go I'll be looking to exit out of most positions.
Step 7 - 1:00 markets are closed. I'm back to all cash. Review the day, my actions, my plan.
Step 8 - Take a nap. Visualize the day in the sleep/wake ether, let my subconscious work out how to do better tomorrow.

It may seem like a lot of thinking but it is actually just deeper thinking on a minority of subjects. That way I can bring to bear all my resources onto achieving my goal.

I'm not thinking about paying bills, phone calls, emails, powder days, having sex, TV/CNBC garbage, politics, sports or 100 other subjects. Only one. Executing my trading plan.

3 comments:

E-Mini Player said...

Excellent post Scott!

Can you elaborate on why you don't trade the first hour? Thanks!

Scott said...

EMP - there are several reasons. It's mostly because I like to get another hour of sleep in. Here on the west coast the open comes very early. I'd rather be fresher and in a better mental state.
Also jumping into the action at the most consistently volatile time of the day is stressful in itself. An hour after the open when I start is another volatile time period but I get to see what has transpired before me, highs, lows, ranges,pops, drops etc. and this gives some guide to go by. Don't get me wrong, volatility is what I trade for but I get to play it more on my terms.
Also one less hour is easier on the brain. I need to be sharp and not suffering from "brain fade" in the afternoon.
My shortened day still has many more opportunities than I can trade so I never think I'm missing out. However once or twice during the crash of '08 I did trade the open and it paid off.

E-Mini Player said...

LOL I'm not a morning person either. Love your responses Scott! You're an extremely chilled out and Profitable trader. I also agree that trading after the first hectic hour is simpler and easier on the nerves since the Initial Balance is in and you have more data/reference points.