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.


heres where FAZ ended up.

Connections



Just to prove to you that the markets can do anything, take a look at the following. Normally or for as long I have been trading FAZ, it moves in the opposite direction of the QQQQ. If QQQQ is moving down , FAZ moves up. Always. I've played it countless times like that. Except today.
Today, at least at this time they are moving in sync upwards. I'm long FAZ with nothing to judge countermoves by. It does feel wrong but what I see in front of me is real so I'm going with it.
First chart is QQQQ.





FAZ