I made a post in another trading forum earlier today; perhaps it will resonate and/or give a tip or two for other trader(s).
It is about the 'not knowing' part of trading.
NoDoji attributed a GREAT quote earlier in my thread that resonated with me:
Here's a deep thought from an ET-er a while back, sums up the profitable trader's mindset perfectly, IMHO, one which I continually strive to attain:
"The conversion happens when you truly believe the future is unknowable. We have such a problem with that as a concept, as though we hate it with all our being.
Start thinking you know the outcome and you have already slipped.
That belief in chaos sets us free.
Without having to think we can act simply and quickly on probabilities, without all the drama."
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Back to the post I made earlier; here is the initial traders musings:
"Lately I find myself opening this page, and then typing nothing. Closing the window and going back to thinking. What is there to say sometimes?
It seems as traders we feel a need to always know what is going on, desire a method that allows us to stay involved, miss a move and wonder how to fix that "error" for the next time...
But, not knowing is ok. Normal. The prevailing condition even.
Not knowing, in some ways, IS trading. The silence, the contemplation, the inaction. Then the trigger, with an expectation but never knowing. And then right or wrong, back to knowing nothing again...
It is no wonder trading feels so difficult. The silence outweighs the noise, and we are left with nothing but ourselves and our confidence or insecurities. If we need to participate, it will take us down. If we fail to act on confidence, same thing. And if failure shakes confidence, it leads to more failure...
But understanding that doing nothing, is more important than doing something, is a critical step."
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My reply: *Note: I took out the $$ particulars and the usernames I referenced.
"I am NOT a trading psychologist; only a risk specialist who deals in probabilities. More advanced than an actuary because traders have SKIN in the game--a % of bankroll per 'bet/trade.'
When serious coin is put on the table 10-15 or 20-30X's per week; one simply must become comfortable being uncomfortable.
There are no certainties; indeed. No guarantees & 90%+ of our hours in front of the markets intraday we are flat and letting our 'mind chatter rest' while in the background stalking setups with the ferocity and focus of a sociopath.
Another poster signature reads:" I will follow my rules, I will take my stops, I will be disciplined and I will work with the market....NOT AGAINST IT! Professional mind control is the key"
I believe in mastering 1 setup at a time and then trading it; over and over again.
No different than a large retail store rolling out a big product launch after extensive 'in-house' research. It either fails or succeeds. Great trading setups that repeat over and over again we increase the inventory (size) and keep making money off of it.
Sometimes we have a weak 'sales' day. So what? We are properly capitalized and @the end of the week, if we honored our rules AND just learned to RELAX while the market is in a state of 'nothingness' (no trade signal)--then it is a boring but highly profitable exchange of time for $$$ {over time--working our edge}.
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Here is that article. It goes beyond the stale mantra of "I will not break my trading rules."
How Often Do You Break the Rules? | PopDoc Trader
http://www.andrewmenaker.com/how-often-do-you-break-the-rules/
Work on your old habit issues every day for 20 minutes (meditate on it--seriously--imagine scenarios where you are flat and patiently waiting for the void to clear and then immediately acting on your edge when it does appear); you'll come out the other side an AWESOMELY consistent trader.
Trading should be boring {though I appreciate it more each year}. Treat it like a potentially very high-paying job & then concentrate on at least 2 other passions outside of trading; you'll be a better trader and a better man for it.
I visualize my trading in the last 15 minutes before I go to sleep. I go over concrete and then esoteric concepts and then let my hypnagogic hallucinations (usually with some Green Dragon coursing through my bloodstream) fade into sleep.
Another poster asked me about music and 'states of mind' recently in an email. I don't use Apple products and I don't want to use technology to try and align my brainwaves when I have real money on the line in a trade.
What I do use and enjoy are 'drone zone' type music stations and recordings that have a pleasing 'aural' tone to me & spectrums of sounds that are similar to 'tonal scales' (but slowed down).
I prefer minor notes in specific chords; however, it doesn't have to be complicated. Whatever 'feels' right for your ears--then when you are trading and NOTHING is happening--you meditate with your eyes open and get your breathing right.
For me that is all that is required. When trading and uncertainty surrounds you--make peace with it and come up with your own 'cone of silence' that is your happy place in a market(s) of nothingness.
When you see your setup(s); attack it--manage it--finish the trade--let go--and then prepare for another.
Have GUIDELINES (written) that assist you when to be done for the a.m. or p.m. or day according to your own strengths and weaknesses for your trading style and psychology.
This is no different than alot of sports psychology--if you can't or won't do simple re-inforceable tactics to make trading easier in the face of uncertainty; as a trader--you will never reach the upper echelon nor probably make the money you should be making if you have a repeatable edge that is consistent.
The world needs ditchdiggers & 'yes-men' & 7 Eleven slurpee attendants & prostitutes as well; most are awful jobs; being a good prostitute is an honorable profession.
I would totally own a brothel in another country than the U.S. if I wasn't a trader--but we didn't start trading in order to fail after awhile and then go back to a stupid job that a retard can do, now did we?
peace
hedvig
