Prior to entering a trade, preparation is very important. One area that I have found very beneficial in my stock trading career is having a action plan. This covers the pyschological elements of trading which has helped me enormously. Write this valuable information down and stick it on your trading desk or on the wall above your screens to read over on a regular basis.
Accept - all possible losses before the battle begins. If you accept that sooner or later no matter how fantastic your strategy is, there will always be a drawdown. This will increase your strength of mind to eliminate a loss when it does occur and to look for the next potential setup.
Center - yourself in mind, body and spirit. Your are in a trade, and it is a point away from you protective stop, a million things is going through your head, shall I get out of the trade, take away more stop, add to the position or don't do anything. These are the most excruciating times, it is very important that you're breathing is relaxed, neutral spine and knees below your hip line. This is to make sure you're whole body is centred and mind clear of any noise. This will give you the opportunity to follow your plan.
Trust - your system and warrior skills. You might have a drawdown in you strategy that lasts a week. Newbie traders make the mistake of not testing their system over a period of months. Moving from system to system will not get you anywhere. Backtest your system then paper trade it before you even decide to trade using any money. Write the results of each trade so you can look back after 6 months to see how it performed.
Imagine - winning every trade in minds eye. Before the market opens, visualise yourself entering a trade in accordance to your setup. See yourself winning every trade possible.
Only - exist in the present to control fear. Because you are trading against other human beings not the computer, it is important to control you're emotions, most importantly the fear factor element.
Never - second guess yourself after the battle. Win, lose or breakeven, after the trade, record everything that occurred in that stock position. Then move on to the next trade. Never say I should have done this or that, it is finished, battle is over.
I am a professional stock trader. I trade all of the major markets with massive success. I have an office based in London and work with a select group of traders to help them reach trading mastery. Only 10% of traders make money in the market on a consistent basis. 90% of traders lose. Do you want to discover the strategies that the big boys are using, then check out this site.
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