Alpha Males SHOULD NOT TRADE until they read these 6 steps!
Whatever your goals are in trading or in life, the correct mindset is of paramount importance. The fighter entering a ring needs to expel fear and doubt from his mind before a bout or he risks catastrophe in the ring. Alphas make great fighters. Not all tasks require the same Alpha mindset however. Aggressive and offensive confidence might be the correct mindset for a boxer but it may require adjustments for navigating the financial markets. The trading landscape is littered with alphas who's confidence and aggression played against them. While alpha confidence is a part, the introspective and feminine beta mindset is also required. The best mindset happens to be a mix of both masculine and feminine personalities. Too much of either is disasterous and these tips will help you get the right formula for success
1 Know thyself!
The first step to attaining the correct mindset to trade is knowing where you are at mentally right now. Honest evaluations are required of yourself and if theres something on your mind you need to acknowledge at the outset. Almost all trading losses arise from poor emotional states. Angry, stressed or otherwise upset traders are rarely consistently successful. Therefore, putting outside influences aside is critical and absolutely necessary. Some people have an easier time than others doing this. Don't get caught in the "oh that's just me" routine, where you accept what kind of emotional person you are. Emotions are like weather and change all the time in normal people. You wouldn't set sail in a hurricane and you shouldn't trade when your not at 100%. The first step is acknowledging your state and realizing that unlike weather, YOUR EMOTIONS ARE MANAGEABLE by using some or all of the following tips.
2 Workout before you trade
Hit the gym, pool or squash court before you sit down at your desk. The endorphins released even in mild exercise routines will help you immensely in your ability to banish negative emotions. Fear equals bankruptcy and exercise is your biggest ally. Increased oxygen flow can boost your perceptiveness and help you spot warnings or opportunity a sleepy brain might miss. Besides that, you will see countless other benefits other that trading.
3 Visualize Outcomes
It is now a proven fact that people who visualize outcomes are much more successful than those who neglect it. A famous study of basketball players showed that the mere act of visualizing free throws was MORE effective than actual free throws. Your mind is powerful beyond comprehension. The problem is that many "trader types" are leery on doing this. In my experience the Alpha types that generally go into trading equites fail to visualize properly. Perhaps they are over confident or think it to be hokey. It doesn't matter forget that alpha ego of yours and visualize for at least 15 minutes. There's plenty of advise on this on the internet and taking full advantage will benefit your mind and by extension, your bottom line.
4 Make a plan
When we fly by the seat of our pants we tend to make decisions based on emotion. Fear or greed come into play much more readily when we don't plan. If a sudden market event happens, its best to avoid. While the instant volatility of a news event can be enticing, your basing your trade on greed and are subject to great losses. Don't fall into the trap. Make plans based on normal market conditions execute those plans. My book the 2 Hour trader is just one set of advice you can follow to make this plan. Whatever plan you choose, stick to it. If you fail to plan, you plan to fail. Period.
5 LIMIT DISTRACTION
Music, TV, and loud places are not advised. While many think themselves (especially alphas) to be above distraction and great "multi taskers", science says otherwise. These distractions can mold your mind in ways you are not even aware of. Resist the temptation to distract yourself while you wait for an exit or entry point. Music or TV can manipulate your brain activity in startling ways. Eliminate them. Even a favorite song playing can cost you big time if it encourages a temporary alpha mind and stimulate over confidence or utopian perspective. Keep the spoc like mathematical mindset and you will be much better off.
6 Forget trading news events
Many traders try to cash in on news events like rumours of war or other major events. This of course can be very risky since the media has been shown to be dishonest in all of its reporting. Trying to discern what may be true or a ruse is next to impossible. The irrational market reactions can wipe you out in minutes. Not only that, the emotional spin placed in news releases is almost always slanted and opposed by other realities or reports and will make you overly optimistic or pessimistic. Either position is not advisable. Until we get honest media, forget it. Stick to your plan and trade regular markets. A news ticker is all you need and it should only alert you to big news events. Those events should be your queue to take the rest of the day off to wait until the ripples of shock price themselves into the market.
Stick to these simple rules and you will have taken the first steps in the battle against traders worst enemy. Your emotions. Good luck and many profits to you!
