V.14:1 (34-36): Recovery and Preparing to Trade by Ari Kiev, M.D.
Keeping a level head is key to enhancing your success as a trader. In this article, this consultant, who teaches psychological breakthrough strategies, discusses how to relinquish the emotional impact of trading failures and successes and staying focused on the upcoming trades.
Trading is a complex activity that requires unceasing self correction in the face of never-ending and ever-changing market conditions. To reach trading mastery, the trader must learn how to recover from previous trades, whether profitable or not, to relinquish the emotional impact of his most recent successes and failures and focus on upcoming trades. He can do so by using techniques of relaxation, concentration and positive thinking to recreate the positive attitude associated with successful performance.
The successful trader is able to get past the euphoria or despair of the last trade and concentrate on the present. After a series of successful trades he allows himself to feel good, but he also remains alert to any tendency to become so relaxed that he stops following his routines of preparation and strategic planning.
STEPS TO TAKE
Recovery involves a series of steps designed to access the mindset of successful trading. One step is to practice relaxation each day to facilitate focused attention. Relaxation involves breathing slowly and deeply, progressively tensing and relaxing major muscle groups of the body and focusing on a neutral object. This procedure quiets the mind and helps the trader let go of self doubt and focus on the next moment.