Zero state of mind is a point in your mindset you know you are not too involved with the outcome of recent events with your trading. Negative can influence you're thinking and objectivity also positive has the same kind of negativity for your trading results.
Maintaining optimal mental state
- Thread starter ronnym789
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I really like that idea. I think I'll make a tailored one for myself.
If there's external factors, particularly financial pressures that can certainly negatively influence them and could carry over and make them take trades they shouldn't, or take trades early etc (trying to make money).
So, if you don't NEED to make a certain amount of money each month, that seems to eliminate a lot of the tilt factor that you mention. Obviously if the person is just generally emotionally unstable, than I don't have a good answer. That would need to be remedied.
Am I understanding you correctly?
Zero state of mind = focus on trading signals regardless of profit or loss.
I think there's a difference between being emotionally unstable versus having incidents come up periodically that can throw someone off. Although I agree with you that an emotionally unstable person should stay away from the market.
My initial idea was to take an "emotional inventory" from a scale of 1 to 10 and chart profitability (x axis) with a numerical value of emotion (y axis). May be having an emotional score of 8 (which could mean intense emotions of anger or overconfidence) would be a signal to deal with the emotions before starting to trade.
Perhaps should use "confidence" rather than believe. That is, you have confidence that you'll be successful because you "know" your plays have a high probability of being correct ("high" being relative, of course). IOW... you know you are supposed to win and you understand "why".
So... how do you get to the point where you KNOW what you're supposed to/should trade. I say, "Technical Analysis". If you don't use that, I don't know WHAT you would use other than "hope".
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If that's your perspective I understand. I don't have a problem with my word choice, ill stand by it and I understand your point and it seems we largely agree so no issues there. I've seen a lot of examples where confidence hurts people. Even complete idiots can be confident.
Well... there is genuine confidence.. and there is Dutch courage.
When you understand what you should be doing and why, you won't need anybody's input to your trading or your psyche.
For example... you see a "breakout". Do you know "why" you should pay up and chase it?
I may not fit your description, but here is what I do:
1. Avoid people I don't like 24/7. Do not disturb mode is on 24/7.
2. Remember that all bad things pass with or without me acting on them.