Let us create a 3d Digital eBook for you! DigyCat.com
Making It Second Nature
Not long ago I was laying on my son's floor throwing one of his toy balls back and forth in the air to myself and I had a strange revelation. I noticed that as I threw the ball up in the air my left arm automatically started to move to where the ball was going to come down. At the time I was pretty amazed at the fact and decided to experiment a little.
I wasn't sure if it was really moving automatically or if I was just reacting consciously very fast and it only appeared like a seamless act. I continued the act a while longer and then I started consciously trying to move my arm to where the ball would go. I was still able to catch the ball but it was a completely different feeling. I wasn't sure if I would catch it where as before I just knew I would so much that I didn't even think about it. When I thought about catching the ball I experienced a psychological shift. Just to be sure I went back to my regular method of just throwing and catching and again it felt automatic.
Next I tried to throw the ball and close my eyes and see if my hand knew where to go. It did. I didn't catch it very much but the ball always hit my hand. I tried the whole thing with my eyes closed next and I didn't touch the ball very often at all that way.
Now I know you must thinking what does any of this have to do with trading. Well, ?uh?..everything! Sure, you do need a system that works and capital and time and desire and effort but beyond that lies the mental state of being a trader. Not just a trader but a consistently successful trader.
How did my mind learn to know exactly where the ball was going? I suppose after many years of throwing or catching a ball as a kid my subconscious adapted the process in a second nature sort of way. As I throw the ball the synaptic messages it sends to my arm direct it to where the ball will be even when my eyes are closed.
In trading we watch the markets for hours a day. Some of us all day every day. The successful among us probably hours after that while practicing. I spend at least an hour a day after the market just going through trades using my system. My system is second nature to me now as a result just like the ball throwing. I still use a system and follow rules but if I am not thinking about the process too much and just flow in a zone I usually know what the market is going to do.
So how do we develop this skill or trait? I believe there are two ways and they both involve practice. One way is to work really hard at your craft and put yourself through an intensive regime of study, practice and work. If you work hard every day and try to get a little bit better every day over time it will happen if your account holds out and you don't burn out mentally. There are mental tricks you can use to make this way more effective such as building a reward system for milestones reached or keeping a daily log of your trading related activities. This method may sound tiring and for many people it would be.
The other way to gain that second nature insight is to direct your focus to having fun with your craft. Where the first method focused on laboriously going through the motions this method is more light hearted. By no means am I suggestion that trading should be taken lightly. I am talking about approach here. If you turn the homework you should be doing every day into a kind of mental game you will be much more likely to do it and more importantly draw upon your experiences in your real-time trading. You should keep the pace fast if that helps and maybe talk to yourself about what you are seeing along the way. Make a funny sound or something as you enter trades and again as you exit. Maybe upbeat sound effects for winning trades and light hearted crashing sounds for losing trades. Do whatever works for you but keep it fun.
There is no getting around this. If your goal is to have the automatic reflexes that kick into gear when you subconscious mind sees an opportunity then you need to practice. Every day I run through the prior two trading days step-by-step and using the Pivot Trend difference model from my NQ Scalping System (http://www.wattstrading.com/Scalpingtheeminis.html) I pick a trading day from the past that directly follows trading days that resemble the recent activity. I bet if you ask any professional or Olympic athlete if they could reflect on what it is that makes them so consistent that the answer would be practice. I can say for sure that the extra time I put in after the markets close is the key to my success.
Good luck to you all. Trade well!
Ryan Watts is a full-time technical trader, money manager, and trading coach with over ten years experience in short-term trading. For more information on his services and trading system visit http://www.wattstrading.com He can also be contacted by email at firstname.lastname@example.org.
Investing - Google News
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Has your broker ever told you that a stock is "overbought" or "oversold"? He probably went on the explain that the stock you own (I hope you didn't) had gone down so far that it now was oversold and due for a rally. He might also have encouraged you to buy an equal amount to "dollar cost average" your position so that when ("if"- he didn't say that, I did)) it did go back up you could "get out even".
Trading For A Living - Part 2
In part 1 of this article I started to look at the financial implications of giving up the day job to instead start trading full time for a living. There are more than just monetary considerations as we will see later, but for now, there are some more costs to ponder.
Hedge Fund 101 - Make Money with Hedge Funds
Investors are always looking for the best investments that will yield the most profit. Any investor who can afford the extra cost should consider investing in Hedge Funds.
Franchise Investing, Franchise Opportunities and Franchising Renewals
Have you considered buying a franchise instead of trying to start a business from scratch. Many franchise agreements are renewed every five or ten years, automatically.
Raising Capital in Today's "New Economy"
We've helped a number of clients develop business plans and raise capital from "angel" investors, corporate entities and venture capitalists during the last 6-8 years. It's always a daunting process that can be full of pitfalls and require a tremendous amount of work - but it can be done! Here is some perspective gleaned from years of experience.
When Its Too Late to Save for Retirement
You are 55 years old (or somewhere aroundthere) and your company is going to force you toretire at 65. You have $35,000 saved in your401K and that's all.
Makin The Sauce
Let's face it, you're on a roll. After getting down to your attorney's office to sign the new Living Trust and then diligently tracking down your assets to fund the trust, you should be congratulated.
Shop More, Save More for College Gimmick or Reality?
The man sat in a chair beside a dressing room at a Tampa, Fla. maternity store.
Begging Your Trust in Africa
The syntax is tortured, the grammar mutilated, but the message - sent by snail mail, telex, fax, or e-mail - is coherent: an African bigwig or his heirs wish to transfer funds amassed in years of graft and venality to a safe bank account in the West. They seek the recipient's permission to make use of his or her inconspicuous services for a percentage of the loot - usually many millions of dollars.
To Retire Rich, Save and Invest Early
If you want to retire rich, start saving investing early. The most powerful tool when it comes to retiring rich, is compounding your returns on money saved when you are young.
Asset Allocation Lessons: The 70% Inflation Solution
For investors only..
Online Trading Options Strategies - Rolling
Rolling is defined in options online trading as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.Other times, you may have to buy your short call back so that you will not lose your stock.
Rolling your 401k: Contributory IRA vs. Rollover IRA
In an ideal world you would start your working career with a great company in your early 20s, steadily climb the corporate ladder, retire at age 65, and draw a sufficient income from your accumulated 401k account to live happily ever after.Unfortunately, that's not how the real world works.
Investigate Before You Invest
"Through wisdom is a house built. And by understanding it is established.
Poll Names Coin Laundries Best Investment For 2005
According to Morton Pollack, CEO of PWS, The Laundry Company and editor of the newsletter, "Historically, laundry owners have been a quiet group. Knowing they are onto a good thing, they've been pretty reticent.
The Benefits of Laddering Your CD Investments
If you've decided to stock some money away in a certificate of deposit, why not reap the highest benefit over time by laddering your CD investments? What's a CD latter? I'm glad you asked.A CD ladder is made up by purchasing several CD's at one time with different maturity dates.
Love The Thrill of Risk? Invest in an Annuity!
With the stock market in steep decline, people are looking for safe places to invest their savings. Many banks and investment companies are pushing annuities.
Reasons For Joining An Investment Club
Whether you're a novice investor or an experienced stock picker an investment club may be beneficial to growing your investment portfolio. This article explains what an investment club is, why you should have an investment program and finally why you should join an investment club.
In a Time of Need
As I take my leisurely walk with my dog through the older section of the local cemetery, I pause to read the details on the barely legible, weathered headstones. I am fascinated with the dates, for I know each stone has a story to tell, a history of its own time and place, but only enough space for identity.
Should You Put Your Annuity in an IRA?
Let me start by answering that question..
MyIdeal Domain Is For Sale - $8,000 For Enquiries eMail Us
© www.MyIdeal.biz - 2012