Have you have been so focused on doing something that you have not been aware of people walking around you or heard any surrounding noise?
Have you ever driven in a motorway and listen to your favourite music? Have you felt in tune with it?
I hope you agree with me that when you are in tune with something or someone, you are completely focused without any distractions or noticing any noise.
Most of you, who know me well, have already identified the subject of this article, and yes, you are not wrong. It’s about trading and in particular it is related to a famous trading book: Trading in the zone by Mark Douglas.
I love this book because it is related to trading psychology and if you are a trader or you are thinking of taking up this career than this is an absolute must read for you. I have read it so many times that I have lost count.
You will get the most from this book if you already have a trading system or execute the trades as effectively as you would like.
This book taps into your belief systems, which in turn determine your actions, in a very coherent manner. ‘A belief system is nothing more than a thought you’ve though over and over again’ – Wayne Dyer. It is no exaggeration to say that if your trading methodology has a genuine edge, this book could transform you into the owner of your very own casino if you allow it to.
The knowledge the author offers is also applicable to other areas of life including quitting smoking – it’s all about positively energising the concept that you’re a non smoker and de-energising the concept that you are a smoker.
Before you turn off condemning that comment as psycho-babble, you should remember, as the author explains, to keep your mind open to information according to what you already believe to be true.
An exceptionally fine book on the most important aspects of trading in which the author selflessly shares his soul in addition to his knowledge.
For example, he shares the 5 fundamental truths of trading:
- Anything can happen whilst trading
- You do not need to know what is going to happen next in order to make money
- There is a random distribution between wins and losses for any given set of variables that define an edge
- An edge is nothing more than an indication of a higher probability of one thing happening over another
- Every moment in the market is unique
He also shares, the 7 principles of trading consistency:
- I objectively identify my edge
- I predefine the risk of every trade
- I completely accept the risk or I am willing to let go of the trade
- I act on my edges without hesitation or reservation
- I pay myself as the market makes money available to me
- I continually monitor my susceptibility to make errors
- I understand the absolute necessity of these principles of consistent success and therefore I will never violate them
So to think like a trader means to think in terms of probabilities, identify your edge, execute your trades the same way each and every time and take every setup that fits your criteria. Look to analyze your trades in sample sizes and not individually. Doing these things (over time), can help develop a level of confidence and consistency in your trading.
He suggests an excellent Trading Mission Statement:
I am a determined trading athlete. My goal as an online trading athlete is to be confident and have belief.
Sticking tenaciously to my plan will help me become a full time trader, trading for a living.
Set and go!!!
Also, he outlines the importance of having a Trading Plan:
‘To have time to do what I want to do and still have the money to do it as well, e.g. travelling, etc.’
To attain the best possible impact on your trading mindset, read with an open mind, make notes, re-read, and re-read again as the knowledge in the book contains has to sink deep into your personality and character arena.
To your trading success