Skip to main content

PRACTICING TECHNIQUES FROM TOP TRADING PSYCHOLOGISTS

 traders should seek to “be in control while simultaneously being out of control a bit” and push one’s comfort zone to find greater success. As if they are a downhill skier picking up top speed yet, having all the confidence they will complete the run without crashing and breaking both collarbones.

Make no mistake, trading is stressful. Active intraday trading is the most stressful of all trading periods. One mistake can ruin your month. One missed print for 5k shares can ruin your week.

When you are frustrated, your brain is chemically altered, and the only way to exit this state of anger is to, well, make an effort to calm down.

perform visualization exercises to better control these emotions.

We all have mental weaknesses that we must conquer. Some of us insist in showing the market that we are correct. Some cannot hit stocks that trade against them. Some anxiously take profits when there is no reason to do so. Some are afraid to pull the trigger with an excellent risk/reward setup. The only way to get better is to work on your visualization exercises as they relate to these weaknesses. 

MENTORING

A good mentor can make your trading career. This was not always true.

Mentors will shout out important technical levels in the market, and will share when the market may turn. A mentor demonstrates the professionalism required to be successful.

The market is testing whether you can adapt. You have the skills. Now we just have to work on when to be aggressive and when to be careful.

listen and then put in the work necessary to adapt successfully.

Never judge your trading based upon your results. If money is all you care about, go join the league of lesser firms.” And then I explain that their goal is to learn, to develop their trading skills, to gain experience trading live, and to get better every day.

A mentor can lead you to discover the talent inside of you. Sometimes you just need to be told that you can do it.

LEARNING FROM TRADERS ON THE DESK

A new trader will find that a well-executed play by a peer in their class is easily remembered compared to hearing about it from an experienced guy. Seriously, imagine watching a guy who just started with you explain how they chopped it up in a trade talking in detail what they saw. An explanation of their play can be much simpler than that of an experienced trader. The experienced guy may just have way too many if-then statements. I have tried to explain to a new trader how I buy into a pullback and I can just see their confused faces. But I have seen a new trader explain to another one what an unusual hold looks like and they remember this stuff.

No regrets. He admits that he was wrong and does nothing more than shrug. Good. Yelling and slamming things will get you nowhere. You were wrong, accept it, move on to the next stock—or stay with the same stock and wait for a similar setup. What does a new trader learn from Zi? He learns the value of being extremely patient.

Comments

Post a Comment

Popular posts from this blog

 Loss is painful, guilt can be devastating. Worse than losing one's dream is the knowledge that the loss was self-inflicted. Problems are solutions that have outlived their usefulness. Problems are pattern that were learned in emotional circumstances during one period of life and that now have taken an existence of their own. Many times, outdated solutions replay themselves in a variety of life situations, leaving people mindlessly repeating their mistakes in work, love, and trading. There can be no free will for people who are locked into patterns developed for past challenges. Successful traders are therapists both learn to do what comes unnaturally. The resolution to problems can be found in what people are doing when those problems are not occurring. The problem with many traders is not that they have problems, but that they are focused on their problems. It is this problem focus that prevents them from appreciating what they are doing right, that blinds them to solutions alrea...
Post a Comment
Read more

Three Choices

When we are unhappy and our Life Conditions do not match our Blueprint, we have three choices as to how we’re going to handle the challenge: First Choice: Blame The first choice people have is to assign blame, and there are three things you can blame: a) Event . There’s a story, something that happened, behind why things are the way they are. However accurate the story may be, blaming an event is convenient because it helps preserve an identity designed to shield us from our true fears: fear of failure and fear of not being loved or accepted. b) Others . “I’m in this situation because this person …” Similarly, the story may be true, but it’s convenient and gives you comfort in the moment. “There’s nothing wrong with me. It’s this other person. There’s nothing I need to change.”  c) Yourself . Most people think that this is being responsible, but blaming yourself will not make it better. There’s a difference between responsibility and beating yourself up—between “Here’s a pattern th...
Post a Comment
Read more

Wealth File #15 Rich people have their money work hard for them. Poor people work hard for their money

Working hard is important, but working hard alone will never make you rich. Rich people can spend their days playing and relaxing because they work smart. They understand and use leverage. They employ other people to work for them and their money to work for them. You do have to work hard for money. For rich people, however, this is a temporary situation. For poor people, it's permanent.. Rich people understand that "you" have to work hard until your "money" works hard enough to take your place they understand  the more your money works, the less you will have to work. To win the money game, the goal is to earn enough passive income to pay for your desired lifestyle. In short, you become financially free when your passive income exceeds your expenses. Rich people think long-term. They balance their spending on enjoyment today with investing for freedom tomorrow. Poor people think short-term. They run their lives based on immediate gratifications. To in...
Post a Comment
Read more