The mental game!

Dear Pro's:

I want to start this thread with the hope that the experienced traders will pop in every so often and provide input on how to keep your cool when trading. I’m not looking for trading systems or strategies, I just want a thread that I can dip into during tough times to remind myself of the mindset of experienced traders and get back into that mode instantly after a bad trade or in my case at the moment, a bad year, since embarking on my Forex journey.

I have been running a journal since I started and when I read back to beginning to learn from my mistakes and remind myself of what not to do (I’ve been told this is good practice), I get worried - as it is plainly obvious that I haven’t made much progress, if at all, since the beginning – or have? I’m not sure.

I’ve been told, and I do agree with this – that 90% of what it takes to trade is about you and your mindset, not about the rocket science academics (fundamentals, technical analysis, etc) though the latter can help – this is what I want this thread to further emphasize with other people’s experiences and practices in keeping the mind finely tuned and focused during their trading session, how this is done by others?

I, along with many, I’m sure, would really appreciate an insight from the pro’s who don’t even have to think about keeping their mindset in check during trading sessions as it’s second nature to them – the place I want to get to one day.......so please, don’t be shy, do share those secrets of the mind with us novices who are struggling.

I'm no pro, but over the years i've learned few things about the trader mindset.

1. You have to understand the importance of risk managment, BUT, also fully accept that you can lose everything from trading even if a solid plan is in place. I believe that you cannot move forward until you accept that possiblity. Taht way your mind is free to make trading choices, instead of worrying about your daily/weekly loss/profit limits.

2. Withdraw regularly when you make a profit. Even if it's a few measely dollars. This is important for your mindset because it gives positive reinforcement for good trading. Trading to me is a job with super raises (if you trade well), so get paid regularly if you are performing well!

3. And last but not least, try to reduce distractions. Distractions include bad health, family problems, pressure of making a living from trading.. etc. Be relaxed when trading cause when shit hits the fan during a trading session, a sound mind well help you tremendously in terms of continuing to trade with the plan. I usually lift weights to loosen up and rid of the stress from work and trading.

that's it i guess..

The Law of Attraction is about speaking and thinking what you want to happen, not focussing what you shouldn't be doing - because then you are attracting all the things you don't want. So try to rephrase your mistakes into the positive... notice what the issue was, solve it by saying what you will do next time such a condition reoccurs, affirm what you will do. If you affirm that a few times when you are in a relaxed frame of mind, it will change you.

I'm not sure what kind of journal you keep, is it very visual? Is it a visual record of the moment of decision (e.g. a snapshot immediately at entry, and another snapshot immediately at exit). If it's a lookback journal it's not so useful to help you see what you were thinking in the heat of the moment, and what you now think on review during the weekend when there's no pressure.

Keep a practice of reviewing every trade recorded in your journal once a week at the end of the week. I do my review on Saturday when there's no trading at all. Go through every single trade and make notes on what worked well and what you could have done better now you can see it in a calm environment. Then review your review with a conclusion...is there a pattern emerging, same mistakes over again? Then find your best solutions. Next week see if last week's solutions helped...if so rave about your achievement, so that it vibrates positivity in you, if not just remind yourself that you know this stuff. Quite often I find myself having doubts when I look at a potential trade, e.g. my signal is there, but I see there is a bit of a spike on the closed 4hr candle at an s/r level. If I silenced those doubts and entered the trade disregarding my feelings about the spike those feelings will re-emerge in the review when I see the visual snapshot. The review gives a stronger voice to those feelings of doubt...and next time I naturally give more weight to that 4hr spike. If I do the same mistake again, the voice telling me to pay attention to the spike gets even stronger on review - and eventually during trading it is right there at the centre of my thought and I won't enter when I get the spike, I'll wait.

Read this post.

Read the introduction to 'Option Trading' by Sinclair, the opinion given in this book has the benefit of been given by somebody who actually trades for a living.

When I trade I always think in terms of pips rather than monetery value. That helps me keep things in perspective.

Obviously a risk management plan is crucial and you need to be disciplined enough to follow it.

If you're watching the screen all day then take 15 minute breaks every hour and get out into the fresh air. Time to clear the head.

Plan for your trades and trade your plan. Set up all your trades in advance, along with stop losses etc, then you can walk away and do something else.

Drink lots of water probably helps as well. Keep you hydrated and helps with concentration.

Start with trading daily charts and make sure your profitble on these charts before lowering the time frame.

If you are losing, then stop, take the rest of the day off and walk away. Your mind will work subconciously on the problems and after a rest will give you the answer.

Hope that helps.

Thanks for all the feedback guys.

A good start to a set of reminders to refer back to – which I certainly did after today’s session and believe it not, the post that helped me the most today was from Lovinit.

On reading the post that hanover recommended about the Three Pervasive Myths in the Trading World by Brett N. Steenbarger, I did initially feel quite shit, though once it sunk in, the underlying message I took away from it for myself was simply, I need to work intelligently and work hard – put in the time necessary if this is for me.

I haven’t read the intro from Options Trading by Sinclair yet – is anyone able to post this intro here by any chance?

Capital preserved and feeling goooood today!

Improving entry points....is a must for me!

I'm moving in the right direction.......

I have been staying composed this week!

i not a pro....
i am a beginner

but before i enter
i will see what is the maximum i will loose,
the risk

so if my stop is hit.. this is expected amount that i will loose

.....thanks for that Sam....

A controlled positive start to the week!

Staying in control!

Took my eye off the ball....

You might find it in the first pages of the reader:

http://www.amazon.com/gp/reader/0470...tu#reader-link

Thanks doblece.

Didn't GOWID!

I assume your trading decision based on guts only? Sorry if I misunderstood something. I don't know, but that's....... :speechless: