Achieving Peak Performance for your Trades

Sunday, 26th April 2009
Lessons

Trading is a performance-oriented discipline. Stress and mental pressures can affect your ability to function and impact your bottom line. Success in trading is a direct result of a sound trading system, sound money management, proper capitalization, and sound psychology.

Here are some common psychological trading issues

  • Fear Of Being Stopped Out Or Fear Of Taking A Loss
  • Getting Out Of Trades Too Early
  • Adding On To A Losing Position
  • Wishing And Hoping
  • Compulsive Trading
  • Anger After A Losing Trade
  • Excessive Joy After A Winning Trade
  • Limiting Profits
  • Not Following Your Proven Trading System
  • Over Thinking The Trade, Second Guessing Your Trading Signals
  • Not Trading The Correct Position Size
  • Trading Too Much
  • Afraid To Trade
  • Irritable after the Trading Day

    • These are by no means all the psychological issues but these are the most common.

    How do you achieve a peak performance mindset as you place your trades? For that matter, the better you are able to eliminate emotions from your day, the better off you will be. Just as you should put winning trades out of your mind, so should you put losing trades out of your mind - quickly. Analyze the markets when they are closed. Your job during the day is to monitor markets, execute trades and manage positions. You need to make quick decisions and have quick reflexes. Your trading plan needs to be predetermined, yet your plans must be able to accommodate “what ifs” situations

    Here is how i prepare myself daily as i put on my trades.

    1) Put fun and passion first.
    I admit that i have yet to learn all that i need to learn from the market and what better way to learn through fun. Ideas and creativity flows better when we are free from pressure and restriction. If i were to execute a fail trade it’s all in the name of the learning process. Understand why it failed and look forward to the next trade where i can fine tune the plan.

    2) Confidence in myself, my methodology, and my ability to succeed
    “Success is how high you bounce when you hit bottom.” — George Patton

    I’ll drag myself up and review my methods and techniques on a daily basis. As a trader you need to believe in your techniques and methodology as you put on a trade. Luck never play a part as you put on your trades. It’s all about how prepared you are and whether your plans is sound.

    3) Attitude.
    Wake up everyday to a new day. Whatever happened yesterday is the past. We can only learn from the past and not make the past a burden for your future. Smile a lot and fill your days with laughter and you will achieve peace with yourself. You need be comfortable in your own trading skin. If you are a bad trader accept it, learn how to improve yourself and always look forward for tomorrow.



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