Success In Trading

Success in trading is all about consistency and to achieve that we must follow the golden rules.

These are:

1 Only take the best opportunities.

2 Always minimize risk. Taking only low risk
opportunities is part of this.

3 Use good Money Management.

4 Have the discipline to follow these rules, especially the first one. It is all too easy to get over-confident and take anything you see. You soon lose your shirt that way. “Only the best is good enough for our trading!is a good motto to follow.
You can’t learn how to do it without doing it.

Saturday, May 10, 2008

Mebtal State

The following six methods will help you gain control of your mental state and increase your success in following through on your trades.
1. Re-presenting the outside world to yourself.

To avoid playing a loser’sgame, it is essential to use the ‘right’ brain to see reality in time to avoid tragedy.” Our logical left hemisphere of the brain is simply not adept at
dealing with incomplete or partial information; indeed, the left hemisphere interferes by sticking new data into already established categories, and if the data do not fit, then the left mode, our dominant mode, tends to ignore them. Moreover, our left hemisphere, educated as it is in our Western culture, tends not to challenge assumptions.

Here is how she suggests you might subjectively experience an Rmode
state of consciousness:

Let’s review the characteristics of the R-mode one more time. First, there is a seeming suspension of time. You are not aware of time in the sense of marking time. Second, you pay no attention to spoken words. You may hear the sounds of speech, but you do not decode the
sounds into meaningful words. If someone speaks to you, it seems
as though it would take a great effort to cross back, think again in words, and answer. Furthermore, whatever you are doing seems immensely interesting. You are attentive and concentrated and feel “at one” with the thing you are concentrating on. You feel energized
but calm, active without anxiety. You feel self-confident and capable of doing the task at hand. Your thinking is not in word but in images and, particularly while drawing, your thinking is “locked on” to the object you are perceiving. The state is very pleasurable. On leaving it, you do not feel tired, but refreshed.
Our job now is to bring this state into clearer focus and under greater conscious control, in order to take advantage of the right hemisphere’s superior ability to process visual information and to
increase your ability to make the cognitive shift to R-Mode at will.

2. Changing your physical self.

3. Calling upon your own resources.

The following eight steps are a guide to implementing the resource
strategy.
1. Establish the context that prevents you from responding appropriately (for example, being caught in a losing trade). Identify the trigger (words, tone, analogue, and so on) for the nonproductive state (regret, anger, bad self-talk). Identify a specific example of a situation
(perhaps the last bad trade).

2. Associate into the situation at the point when you first realize you are having the undesired response (for example, see the stock tick downward on your computer screen).

3. Dissociate from the situation (literally step back from the screen).

4. Identify the most appropriate response(s) for the “other you over there” (for example, reframe the trade from “good” to “bad”; become fearful of it becoming worse).

5. Reassociate back into the situation, taking with you the new responses.

6. Future-pace (see yourself in the future exiting bad positions).

7. Test using a different but similar situation to the one previously tested.

8. Identify the most appropriate response(s).

4. Fantasizing.

5. Analyzing and integrating parts of yourself.

6. Modeling yourself after others.

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