Jeremy came to me seeking help with emotional control. Although a solid trader, he sometimes found himself trading his emotions rather than the market. Analysis of his trading results indicated he could do better, perhaps much better... Over a relatively brief period, Jeremy learned the things needed to access the ‘zone' just like athletes. Learning to apply these skills helped him improve his bottom line as he reached a new level in his trading.
What exactly do elite athletes know about getting in the zone? What exactly is the zone anyway and can it help traders? Can traders actually learn to get into the zone?
Athletes have described the zone in various ways. All view it as a certain state that facilitates and often helps elevate their play. Some have said there is an intense concentration to the task-at-hand. Others describe it as a merging of actions and responses with acute clarity and awareness. And still others say being in the zone is akin to losing self-conscious thoughts which are ordinarily disparaging and can adversely affect performance. Being in the zone is all of these things. It's a state of optimal performance.
Sport and performance psychologists have learned much about this unique state and how to access it. Athletes work closely with sport psychologists on many aspects of their sport, including developing the ability to enter the zone. Trading is a performance activity just like sport, only without the athletic component. Like athletes, traders can benefit by learning how to enter the zone.
Traders can learn to increase awareness and trade with their mind-in-the-moment. It requires the ability to notice both market action and internal processes in a nonjudgmental manner. An acceptance and a willingness to experience the internal processes on the part of the trader are also necessary. This includes the sometimes negative thoughts, emotions, and physical sensations that can be uncomfortable but are a natural part of being human and that we all have.
Here's the key point: Rather than get caught up in that negative internal state or try to suppress and control it, make the commitment to attend to the trading task-at-hand, not to internal pressures you may be experiencing. It is certainly easier said than done, but it isn't impossible. When we struggle with our emotions and the negative things the mind is telling us, we take ourselves right out of the zone. The way to enter and stay in the zone is to have the uncomfortable private experience if it shows up and keep your focus on what matters most in trading: what the market is telling you and sound trading behaviors.
Cutting-edge behavioral psychology has developed new, advanced methods which I use to assist traders in improving their performance
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Editors’ Picks
EUR/USD holds firm above 1.1900 as US NFP looms
EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.
GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets
Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.
USD/JPY remains heavy around 153.00 on firmer Japanese Yen
USD/JPY is sustaining its three-day rout at around 153.00 in the European session on Wednesday, awaiting the closely-watched US NFP report. Rising bets on Fed rate cuts keep the US Dollar depressed. In contrast, expectations that PM Takaichi's policies will boost the economy and allow the BoJ to stick to its hawkish stance bolster the Japanese Yen, weighing on the pair amid intervention fears.
Editors’ Picks
EUR/USD holds firm above 1.1900 as US NFP looms
EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.
USD/JPY remains heavy around 153.00 on firmer Japanese Yen
USD/JPY is sustaining its three-day rout at around 153.00 in the European session on Wednesday, awaiting the closely-watched US NFP report. Rising bets on Fed rate cuts keep the US Dollar depressed. In contrast, expectations that PM Takaichi's policies will boost the economy and allow the BoJ to stick to its hawkish stance bolster the Japanese Yen, weighing on the pair amid intervention fears.
Gold sticks to gains near $5,050 as focus shifts to US NFP
Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.
US Nonfarm Payrolls expected to show modest job gains in January
The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.
S&P 500 at 7,000 is a valuation test, not a liquidity problem
The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.
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