I have read somewhere and seen similar theories about how trading is 90% (or some other similar equations) psychology and the rest techniques and money management.
While much has been talked about trading discipline and minimizing the emotional factor here and there between different threads, I would like to share another psychological aspect, the mental preparation part. I belief others has expounded on this subject before and I really don't know who, but I have borrowed several principles from sports performance enhancement techniques, mainly imaginary methods as well as Neuro Linguistic Programming (NLP) to help better prepare the trader before the actual action begins.
I have been taught imaginary techniques by a sportsman I met briefly and has been trained in NLP several years back. Along the way, I have intergrated simlilar concepts to assit my trading and has been helpful especially in areas of emotional control and reducing hesitation in pulling the trigger. The following simple excersises will take less than 10 mins to do and hopefully will help you reduce the stress of trading.
Step 1 : Assuming you have your trading day planned out, review and take mental notes of your objectives of the day.
Step 2 : Find a comfortable place where there is no distraction, shut off all music or anything that will cause you to get distracted.
Step 3 : Visualize yourself in front of your computer. It doesn't matter if your eyes are closed or opened, just do whatever you are comfortable with. The best way is to imagine you are watching a TV screen with you inside. Make it a real as possible, the surrounding, how your desk look like etc.
Step 4 : Now imagine you have a series of signals going off on your screen and "see" how you will take those signals effortlessly and play out your trade plan effectively (ie your take profit). Make it real, "see" how you will react and "see" the satisfaction on your face.
Step 5 : Arguably the most important step. Imagine things going against your way. This is not too difficult as there can be only 2 directions on the chart. "See" how you are going to without hesitation, execute your stop loss strategy. Imagine yourself to be unfaltered, and disciplined, moving on to the next trade plan.
Repeat the above mental exercise 2 or 3 times. When the real thing unfolds in front of you, pulling the trigger will be easier.
The above are just a rough guide to how to do it, you can add and modify the steps to suit yourself better.
Regards
While much has been talked about trading discipline and minimizing the emotional factor here and there between different threads, I would like to share another psychological aspect, the mental preparation part. I belief others has expounded on this subject before and I really don't know who, but I have borrowed several principles from sports performance enhancement techniques, mainly imaginary methods as well as Neuro Linguistic Programming (NLP) to help better prepare the trader before the actual action begins.
I have been taught imaginary techniques by a sportsman I met briefly and has been trained in NLP several years back. Along the way, I have intergrated simlilar concepts to assit my trading and has been helpful especially in areas of emotional control and reducing hesitation in pulling the trigger. The following simple excersises will take less than 10 mins to do and hopefully will help you reduce the stress of trading.
Step 1 : Assuming you have your trading day planned out, review and take mental notes of your objectives of the day.
Step 2 : Find a comfortable place where there is no distraction, shut off all music or anything that will cause you to get distracted.
Step 3 : Visualize yourself in front of your computer. It doesn't matter if your eyes are closed or opened, just do whatever you are comfortable with. The best way is to imagine you are watching a TV screen with you inside. Make it a real as possible, the surrounding, how your desk look like etc.
Step 4 : Now imagine you have a series of signals going off on your screen and "see" how you will take those signals effortlessly and play out your trade plan effectively (ie your take profit). Make it real, "see" how you will react and "see" the satisfaction on your face.
Step 5 : Arguably the most important step. Imagine things going against your way. This is not too difficult as there can be only 2 directions on the chart. "See" how you are going to without hesitation, execute your stop loss strategy. Imagine yourself to be unfaltered, and disciplined, moving on to the next trade plan.
Repeat the above mental exercise 2 or 3 times. When the real thing unfolds in front of you, pulling the trigger will be easier.
The above are just a rough guide to how to do it, you can add and modify the steps to suit yourself better.
Regards