Trading Like a Warrior
It's the middle of the trading day. Youâve been monitoring the market action carefully. Everything seems just right; you enter precisely at the point you had planned. Now itâs just a matter of waiting patiently for the price to rise to your profit objective. So you wait. It rises a little, but when it wavers, you start to lose confidence. You think, âMaybe I was wrong about this trade. The market seems to be going against me.â What do you do next? Some people panic. Out of fear, they freeze. While in a daze, they canât take decisive action. Other traders get angry. They think, âThe market isnât supposed to move that way. Whatâs going wrong? Someone or something is manipulating the market unfairly.â Usually, thoughts like these make you upset and emotional. Emotions at critical moments of trading can knock you off your game. Rather than thinking calmly and rationally, you are overly emotional and on the verge of making a trading mistake. Rather than trade emotionally, though, itâs better to trade like a master warrior, a person who stays cool under pressure, and focuses on the process of trading rather than on the prize.
Psychologist, trading expert, and best selling author, Dr. Richard McCall is a good example of a trader who focuses on the process rather than the prize. He approaches trading the same way as he approaches the martial arts. As a master in the martial arts, Dr. McCall argues that the execution of a trade should be approached in the same manner as a martial artist fights an opponent. Dr. McCall argues that many traders react emotionally as they trade. They don't trade in the proper state of mind. In an exclusive interview with Innerworth, Dr. McCall advised, "instead of worrying about the money, you really must concentrate on creating an art formâŠget away from the reward issueâŠget away from the downside or the upside. You must learn to perform and execute flawlessly in a Zen like manner. Unfortunately, people execute a trade merely to make money. That trips them up. It makes them uninspired. It makes them confused, and it will ultimately interfere with their ability to be fluidly consistent." According to Dr. McCall, many traders are consumed with emotions when they should be focusing on their ongoing experience. "They just angst over how to get the very best execution and get the most money out of the market. They get mad and angry because they encounter slippage and things like that." Rather than trade emotionally, it's vital to stay calm and logical. Take your ego out of the picture and focus on what is happening moment by moment. Research studies illustrate the benefits of taking decisive action rather than focusing on the prize. Compared to people who focus on executing a specific action plan, people who concentrate on the rewards they will receive upon completing their goals are less likely to achieve their goals (Powers, Koestner, & Topciu, 2005). A warrior doesn't focus on the benefits of winning a battle. The battle must be won first. A warrior who stays alive focuses on immediate, ongoing experiences and taking decisive action. If you want to trade profitably, you must do the same. Focus on the process of trading, and think about the prizes after they are safely deposited in your bank account.
(From www.innerworth.com)