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The Mind of a Trader

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You Need To Learn How To Dance In The Rain

Fri, May 22 2009, 14:05 GMT
by Steven Croft

Trading Metro

You might have days or even weeks without any storms, but they will come. Violent movements, large losses, markets that react opposite than your strategy tells you will happen and so much more.

We cannot keep these situations from happening; however we can make a decision to either wait for the storms to pass or step out and dance in the rain.

If we are planning on waiting until there are no storms, no struggles, no disappointments or no losing trades then we will be waiting for a very long time. Expect the storms to occur and have a plan as to how you will work through the storm.

When we work through the storm with a higher awareness of our risk management, money management and patience we will come out the other side stronger than before and will be ready for the next time a storm breaks out.

It is not the fact that storms happen, it is being ready to get out in the storm and still be productive. Instead of fearing the storm, learn how to dance in the rain.

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When You Find The Right Track... Don't Just Get On... Get Going!

If we get on the right track and just sit still, we will get run over. As a trader, each of us needs to continually review our overall plan and ensure that we are staying on track with the market movement.

We need to stay in tune with the volatility and adjust our strategy so that we do not get run over. The real struggle begins when we get everything in order, but then do nothing. This might be because of fear, lack of knowledge or many other reasons.

It is so important that we keep moving forward, using the power within our own engine and use the skills we have at the current level of our trading career to make a decision and commit to it.

If a train sits still, it will get nowhere and could also easily get hit by another one that is moving down the tracks. They all must keep moving to stay on schedule. Each of us must do the same.

We are all just one decision away from a great change in our life. So, find your track, get your engine started and push the throttle forward to experience the journey.

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Enthusiasm Brings About A Triumph

The greatest victories in life rarely come from those who are sad, pessimistic or lacking enthusiasm.

When we approach challenges in any area with enthusiasm, we set a new foundation that starts us off on the right foot. This does not automatically happen. We all need to decide that we are going to start changing the way we begin our trading sessions.

Before we jump on our computer and look at our charts and start executing trades, take about 15 minutes to set the tone for this session. Take a few deep breaths, forget about the list of tasks that you have to deal with today, get a piece of paper and write down 1 or 2 items that you will focus on during today's trades.

Once you have your mind set and your 2 items ready; say out loud "I am ready to trade". Say this with enthusiasm and then sit down and begin.

You will have a new perspective on today which does not include focusing on the profit results, but instead on the process. Your trading session will have new meaning and you are now set to be triumphant in today's trades.

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Thinking Can Make Impossible Become Possible

I am sure that all of us have seen the statue of The Thinking Man. It is an amazing sculpture that evokes in individuals many different emotions and ideas.

As a trader, if we are always worrying about what might happen if we do this or do that and if it is wrong that we will lose money, then we will rarely if ever have a successful session.

I submit that if we take time before we begin a trading session to think about all of the correct decisions we will make, all of the good trades we will execute, all of the money management actions that we will adhere to and so much more, then we will be so far ahead of multitudes of other traders.

When we take time to think about what we desire to accomplish and what skill sets we have and how we will put them to use while we trade, when the session is over we will many times be amazed at what we have accomplished.

Don't begin trading with thoughts of it being impossible to succeed or else your results will match those thoughts. Fill your thoughts with confidence and focus on what you truly desire to happen and then let yourself just go ahead and make it happen.

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Don't Just Look, Make Sure That You Truly See And Understand

Many of us have made trades after a quick look at our charts and later we look back and say "I wish I would have taken a little more time before I did that".

In the world around us, everyone is always rushing to do everything especially in making a decision. I understand that sometimes you are forced to make quick decisions, however as a trader, you will regret quick decisions more times that you will congratulate yourself.

If we have committed to our risk management, money management, trading strategy along with our overall plan for our session, then I recommend that if you truly want your sessions to be more successful, take a few more seconds in every step.

Take a few more seconds to not just look at the charts, but to truly see and understand what you see. Take a few more seconds to determine where you entry point and exit point is and not just wing it.

Take a few more seconds to prepare and instead of just looking and deciding, clearly see and understand what you see and you will enhance your trading performance.

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Published on  Fri, May 22 2009, 14:15 GMT