Mind Conditioning for More Effective
Trading
By Larry Jacobs Editor, Traders World magazine
What
causes the at-home trader, or, for that matter, any trader, to win
or lose in the financial markets? One key factor is mind conditioning.
Mind conditioning can overcome the psychological weaknesses of a
trader. This article explains the psychological problems that face
the trader and how they can be solved.
In
a survey published in Traders World magazine, traders identified
their major weaknesses in successfully trading the markets as:
| 1.
Execution (when to pull the trigger) |
| 2.
Analysis |
| 3.
No confidence in their trading |
| 4.
An inferior trading plan |
The
traders' replies were from their own viewpoint, what they felt prevented
them from being capable traders. If a poor trader is going to become
a successful trader, he must change how he views his ability to
trade.
The
most important trader's weakness to overcome is an inferior trading
plan. To be successful, the trader must do the following five things.
| 1.
Obtain a competent trading methodology. |
| 2.
Dig out a profitable trading plan from the methodology. |
| 3.
Put together rules for the plan. |
| 4.
Back test the trading plan. |
| 5.
Use self-control to trade the plan. |
Having
a good trading plan and implementing it are two different things.
Many traders freeze up when they attempt to trade. The trader is
sometimes unable to take action even though he knows the market
has changed direction. He can't pull the trigger. This happens because
trading and analysis of the markets are two different things. This
is the reason many intelligent, analytical researchers cannot successfully
trade the markets.
To
be successful, a trader must maintain a mental equilibrium between
actual trading and analysis of the markets. The greater the equilibrium,
the greater chance there is for winning. The trader's subconscious
mind must accept the fact that he has a good trading plan and transmit
it to his conscious mind.
The
hardest thing the trader must overcome is the subconscious memory
of prior losing trades. This memory tries to protect him from sustaining
additional losses. That is why, when he is about to make a trade,
his adrenaline flows, he starts to sweat, and he goes into a state
of fear. He freezes up.
A
CD designed to influence mindset was developed for
the trader to handle the challenges of maintaining the balance between
actual trading and analysis of the markets and ignoring past memories
of losing. The CD-ROM conveniently fits into a computer and plays
continuous, subliminal, soothing background tones on the computer
speakers during the trader's day.
The trader's mind becomes highly receptive
to positive suggestions and conditioning and is put into the right
frame of reference for better trading and learning. The sounds the
CD plays also stimulate mental clarity.
So,
if the trader has a high-quality, back-tested trading system, his
subconscious and conscious mind can act in harmony, and he can more
effectively execute his trading plan.
For more information on this technology, go to www.tradersworld.com.
Larry Jacobs' articles appear in Traders World
magazine, www.tradersworld.com,
and he can be contacted via email at publisher@tradersworld.com. |
