Archive for: May 2007

Actual questions starting from ~ May 3rd, 2007

Q:
When this usd/jpy will stop pimping above 120?
When eur/jpy and gbp/jpy will drop?

A:
When the LAST BRAVE SHORT GIVES UP!

Anxiety is a future oriented emotion. You never will get anxious about events that have already occurred. Suppose we had been anxious about a trade but now it’s over with profit hit or stopped out. We no longer feel anxiety - only feel nothing, or satisfaction, or remorse, or disappointment, or sorrow, or some other past oriented emotion.
Anxiety communicate a message that there’s something in our future for which we need to prepare. This is a vital, a self-protection message.
If you’re anxious about a trade, ask yourself, “What can I do to prepare for this evolution?” Fortunately traders almost everytime have to be prepared only for 2 major events - profit or lose. At a first glance my anxiety is related to a failure.. Only at first glance, cause there is no failure. There is only a lack of knowledge, technique, and experience.
If you’re anxious about your trade - ask yourself, “Is there anything else I need to do to clear this fear, and trust in me?” This might involve additional research, verification, something else. Don`t let the pressure of anxiety to affect you at a higher level. But although we know how pressure can affect us, we may not know how to deal with pressure of anxiety. Or what we do know, doesn’t always do the job.
When confronted with the anxiety in the trading, our natural self-defense system-called the fight or flee syndrome - jumps into action. Developed early in our history to confront the life-threatening problems our distant ancestors faced, like the attack of wild animals or natural disasters, our stress defense system stimulates certain regions of the body to react quicker than normal. The heart beats faster, breathing accelerates, and blood pressure increases. Two hormones are released, cortisol to mobilize additional energy and adrenaline to increase our reflexes, strength, reaction time of our mind. But there is a nail in my head: the same chemicals that speed up our physical responses also suppress the calm, rational parts of the brain.
The result? We tense up. Our emotions take over. We start talking to ourselves, worried that we’ll miss a note, lose track of the thoughts. A trader does not need al of this.
As a short resume: Disappointment, or the fear of disappointment, keeps many people from expecting success. The problem here is that I need to anticipate success in order to succeed. Can you imagine what would happen if a professional expected (was anxious all the time) to fail? Such a fear/thought just never crosses the mind of a truly good trader. An outstanding trader operates “in the zone” fully anticipating, creating in his imagination his own flawless performance.
Definitely, when I feel anxiety about a trade

Trading is about you. Your attitude towards the market and it is more valuable than any hyped system available these days. A system can be a compliment but can never be enough to trade the market successfully.

Take a deeper look and contemplate. We are not trading against the market but with ourselves. This would lead to a question of attitude towards the market. A million dollar question! The inner us. We have to expect this process is hard and painful some times. Trading is all about discipline, patience and heart. We live our lives based on beliefs. Our trading represents ourselves and our values and it takes a lot of inner work to change failure into success, and a lot of discipline to maintain success.
One must conquer himself to conquer the world, a trader must not want to conquer the world, no reason here.
Whoever said it, has gone through great experience and achieved the ultimate reward.

Self is the toughest obstacle to overcome in trading. And it’s the one area that is most avoided. How many sites regarding trading psychology are on the internet compared to the other analysis and trade calls sites? Now take that into consideration as you think about the golden rule of trading…. “ The vast majority of Traders lose.”

The proper psychological mindset will not over come bad trading, but the best setup, pattern etc… cannot be traded successfully without some self-control or discipline.

Which is why so many want to automate a system. But this brings up the underlying problem. Responsibility for ones actions. The Herd wants to do what everyone else is doing and when the herd loses, you hear about Brokers running stops, Bad trades from the call services…

Winning in this business is for the most part a lonely place.

Just a loser thoughts.
Between, last couple of weeks seen a nice up period here…

GOD Bless!

A boring day today and I want to write down few lines about losing trades and losing streaks. In fact, actual for me is “last trade of the week” syndrome (my term). It is happening to me from time to time, after a succesfull week – last trade, usualy on Friday is a losing one; is actual for last 2 weeks, happen before. Re-readed “The secrets to Emotions Free Trading”.

…The biggest reasons people get into losing streaks while trading is because they confuse their losing trades with themselves, you conclude that because you had a losing trade(s), you’re a loser.

The important thing to remember here is that I am not losing trades. Losing trades are PART of TRADING. There is not a single trader in the world that doesn’t have losing trades. The only way to avoid them is not to trade in the first place. I can not be a successful trader until I take mistakes and losing trades for what they really are. They are simply by-products in the trading game and need to be used to gain learning and understanding. No way do they define as a person. But that is where the big problem comes in. Many people let their losing trades and mistakes to define them. If they’re having trouble and have had a series of losing trades, they start to think of themselves as a loser. They continually think of themselves that way, this kind of thinking will just bring on more of the same.

Forgiving yourself completely is the only way to avoid this trouble. You are not your mistakes and losing trades.
You must put the past behind you and go forward.
Holding a grudge against you only hurts yourself. This is actual for ALL THE THINGS happening in your life and what is an actual rule for your life can not be unactual for your trading.
Forgive yourself, trace a line, close that book, it’s the only way to be successful.

Proven again last week ;-).

Adapted to me,
And inspired from “The secrets to Emotions Free Trading”, thanks to Larry Levin