Develop the Habits to Drive Your Trading Success
Has
this happened to you as it did to Harvey? His eyes were at half-mast as he
could barely focus on the chart staring back at him from the computer screen.
He felt very tired like he had weights on his arms, and his mind was foggy.
But, what was quite clear is that he had lost again. Harvey’s anger began
to rise through the fog as he asked the question, which fell like a dead weight
on the silence around him; “…Why do I always lose in the morning? It’s as
if the markets were looking over my shoulder and they just wait till I enter
then go in the other direction.” So, here he was again, as he started his
day out as he had many times before. He would hit the snooze button a few
times, then stumble out of bed and head for the coffeemaker. Afterwards,
he would stagger straight for his computer to turn on his trading
platform. Oh, he would take a quick look at the market news as well,
after turning on his T.V. Of course, he did attempt to look over his
watch list and bring up a few charts before deciding on what he would
play. But so often, his choice of set-up came not from his homework, but
from something he had heard in one of the chat-rooms or had seen from one of
the news show talking heads. Harvey’s body was reeling, his head was
beginning to hurt and in addition to his anger, he felt completely out of
sorts.
“Why
is this continuing to happen?” he thought. How do I turn this craziness
around?
Harvey
had habits, but they were not habits that served him. He needed to bring
his “A” Game to the platform in order to access and activate his internal
resources. For example, he needed a clear mind supported by an
appropriate blood sugar level, a hydrated body so that his internal
physiological system communicated cellular information efficiently, a focused
intention that came from being centered and grounded and an emotionally stable
demeanor that was connected to confidence. Additionally, he needed to be
aligned in body, mind, and emotions in order to ward off the conflicts that
could and would enter into his system. It was important for him to form a
powerful morning routine that was designed to support his “internal data”
meaning his thinking, emotions and behavior; and a routine that was also
designed to support his “mechanical data” that is, the market information,
news, charts, and indicators. Yes, Harvey was out-of-control, but he
would go a long way to getting back in control if he created a routine that he
could follow, which would after a short while habituate and set the stage for
building his skill levels.
Routines
are powerful habit formers and if you identify a routine for the beginning of
your trading session, you will create a support mechanism for optimal ability
to “see” the reality of the price action and the order flow. Of course,
some of you might say, “I’m not willing to do all that. I’m ready to
trade.” Well, my question to you would be, how important is your
trading? Is it only for excitement and entertainment? If so, then
why not just go to the casino – at least there you get free drinks. Or,
are you serious about being successful? That doesn’t mean that you don’t
or cannot enjoy the art of trading; it just means that in large measure your
enjoyment comes from trading masterfully and going as far as you can with all
the tools and expertise that you’ve got.
Here
is a powerful regimen that will benefit your entire system (mind, body and
spirit) greatly. And, anything that supports your entire system will
support your capacity and ability to accurately read what the markets are
saying.
- At the beginning of your day,
drink a large glass (8 – 16 ounces) of water in order to hydrate your
system. Humans are 95% water and your cells require water in order
to communicate effectively and maintain electrolyte, neurotransmitter,
hormone and other electro-magnetic and electro-chemical balance in your
body.
- Start your day with exercise.
Energize your system, oxygenate your bloodstream and get the cobwebs out
of your brain and body. This does not have to be strenuous and in fact it
can be just 10 to 20 minutes of calisthenics and stretching. Truly,
if you haven’t experienced the natural high that comes from a consistent
period of first-thing-in-the-morning bodywork, then you’re in for a
treat. It is a thriving and revitalizing experience that leaves you
glowing and confident for the day, ready to take on the challenges that
await you.
- Try a meditative session to
ground you in a relaxed and aligned state in order to be available,
patient and focused with intention. By sitting still and focusing on
your breath, you can ease any residual tension and center your system by
focusing on being proactive, resolute and attentive to what matters most.
- Eat a light nutritious
breakfast, and drink juices and/or herbal tea to maintain focus and mental
strength. Eating is very important to incorporate and maintain
proper minerals, vitamins and nutrients in the bloodstream for sugar
balance, and brain function. Your energy level needs to be high for
prolonged and intense mental work, whether for an hour or several hours of
market participation.
- Review your Plan and Trading
Rules to keep them fresh in your mind. Keep hard copies of them on
your desk for easy reference while in the trading trenches. It is
vital that you are familiar with your trading plan and rules
intimately. You can’t follow a rule you have forgotten.
- Do your homework, whatever
supports your style and trading strategy. The point is to “do it.”
- Go through your daily trading
strategy “out loud.” This has a way of flushing out
distortions. Look at the charts you are planning to use.
Identify the play you are going to make, and describe the rationale with
entry, target, time frame and exit. You will be surprised at how the
trade “sounds,” and in fact, new perceptions of the trade may present
themselves to either clarify and strengthen your confidence or shake you
out of the dream that caused you to see something that wasn’t really there.
- Then take a deep breath and
enjoy becoming one with the price action and order flow. Remember,
patience is a key ingredient to both seeing things as they are and waiting
until the trade comes to you; don’t chase the trades.
The
example routine in the above is a powerful prototype for addressing both your
“mechanical data” and your “internal data.” It’s not enough to prepare
only for the mechanical data (the market information, the news, the charts
and/or the technical data associated with the movement of price). You
must also prepare your internal data (thinking, emotional stability and
behavioral follow-through) if you want to have any chance of bringing your “A”
Game to your platform. Make sure that when you turn on your computer and
pull up your trading screen, you are ready and prepared to access and activate
all of your internal and external resources to bear on what you are
doing. Trading is arguably the single most difficult business venture on
the planet and whether you think you are or not, you will express yourself when
in the markets. Every blemish, character flaw and or weakness in your
personality will be challenged, called out and severely tested when you put
yourself at risk in the markets. So, trade by design not by default
by learning and using mental and emotional tools to consistently trade “as” a
winner. In the Extended Learning Track Mastering the Mental Game, we show
you how to prepare your “A” Game for the markets and to maintain and sustain it
while you are trading. Also, ask your Online Trading Academy Educational
Counselor for more information about the Online Mastering the Mental Game
Course. And, you may want to read my book; “From Pain to Profit: Secrets
of the Peak Performance Trader” as well.
Happy
Trading.
Dr.Woody Jhonson
Instructor , OTA
