OK…So, you’re in a trade and you hear a loud voice that sounds suspiciously like your mother say, “… No, don’t do that, you’ll lose!” But, even though the voice resonates in your head, this is in fact the only place that it can be heard; because it’s coming from you. Thoughts are part and parcel to the trading process. There are mechanical thoughts, for example: “…This zone is too tight so let me check the level on another time frame.” These thoughts have to do with the mechanics of your trade, as in your plan, rationale, set-ups, rules, target and stops; to name a few. There are also internal thoughts, for example: “I always screw up with these supply zones and it probably won’t be any different now.” Of course, internal thoughts are about you and your beliefs (limiting or otherwise) concerning money, loss, abilities, confidence, esteem, etc… Internal thoughts and noise can be as loud and arguably more distracting as sounds in the physical environment. And I might add here, that it’s not that your thoughts have a huge impact upon your trading, actually, it’s more like without your thoughts there is no trading (short of a Black Box – and that must be programmed). So, just as thoughts are crucial to trading, sounds can greatly affect thoughts; that means that “sounds” whether external or internal greatly affect your trade. There are so many sounds in your overall environment; from voices, ambient sounds (dogs barking, traffic, landscaping, electrical/mechanical devices), and TV and/or radio programs. So much of it turns into noise, very distracting noise. Now, what is most important for you to remember is that auditory stimuli in your trading environment should be carefully for maximum support to your trading.
One of the ways to become deliberate about managing the sounds of your trading environment is first through managing your internal dialogue. This is done by monitoring thoughts in order to identify unsupportive, negative or destructive content stemming from limiting beliefs about self, markets or processes. When you recognize that a previously unconscious negative thought is now asserting itself you should immediately stop what you are doing and change the content and/or the context of the idea. That would change the meaning of that thought so you can go from, “…You were pretty stupid to lose in that trade.” To: “…I’ve made a mistake, I’ll learn from it and then move on.” When you go through this exercise repeatedly you will begin to train your mind/brain to jettison thought-garbage and replace it with thoughts that are supportive and relevant to successful trading.
External sounds must be managed as well and choosing wisely will assist you in honing your focus to a laser precision on what matters most and keep your internal dialogue on target and on task. Let’s begin with music. Music has been documented ad nausea for its effect on the body, mind and spirit of the human system for both good and ill. Here is an example; Adagio 60 beat per minute classical Baroque is a great choice for helping you to relax your body while keeping your mind sharp. This type of music engages a “frequency following response” in the body; and if you breath along with the rhythm of the music your heart rate is likely to slow its rhythm as well resulting in an increased state of relaxation. You are also likely to go into an “alpha” brain wave (7 – 12 Hz) after about 10 – 15 minutes of listening. This brain wave is associated with a state of relaxation and calm while remaining alert. Adding this type of stimuli to your trading environment can help get your system firing on all cylinders so that you’re aligned in body, mind and emotions, allowing your whole self to work toward the same goals and in the same direction. It begins with relaxation, calm and focus, which in turn supports patience and the ability to follow-through. Additionally, you can buy audio brain wave entrainment tracks (binaural beats and/or isochronic tones) from ITunes, Amazon or …; then upload it into your computer using audacity.com, a free open-source recording software, for instance. Then choose an “alpha” frequency to trade with and use it along with or aside from the classical adagio.
Here’s something else you could do. Go through your journal (What?!? You don’t keep one? Then start immediately!!) and identify those negative statements or beliefs (“If my stop gets hit I’ll lose” and “If I lose that means that I’m a horrible trader!”) that created an emotion (like fear) and drove a behavior (like moving a stop). Then take that negative statement and change it to be supportive and make an affirmation about it. For instance, I’m so grateful and happy now that I allow my stops to always protect my capital. Then record the affirmation(s), put them on a loop using audacity.com and play them back along with the music and the binaural beats.
The examples above of managing your auditory trading environment create a powerful edge in planning your trades, trading your plans, following all of your rules and keeping all of your commitments. This is among the foundation of your goals and objectives. Designing your sound environment is a key to paving the way to your highest and best inner trader trading in the highest and best interests of self. This is what we teach in “Mastering the Mental Game” Online, On-location and XLT. Ask your Online Trading Academy Representative for more information. Also, get my book: “From Pain to Profit: Secrets of the Peak Performance Trader.”
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
Discover how to make money in forex is easy if you know how the bankers trade!
5 Forex News Events You Need To Know
In the fast moving world of currency markets, it is extremely important for new traders to know the list of important forex news...
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and...
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.