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Flojomojo

The Traders' Psychological Toolbox

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Hello fellow travelers,

undoubtedly my biggest challenge on my journey to become a trader is to conquer myself and master my own psychology. This includes things like:

  • the constant concentration needed
  • the mental “reboot” if things don’t turn out the right way
  • chasing a missed opportunity
  • impulsive actions
  • etc. etc.

The only book I’m aware of that deals with this in a “how to” basis is “Gewinnen beginnt Innen” (http://www.amazon.de/Gewinnen-beginnt-innen-Mentales-Training/dp/3898790975) …it’s in German and for my taste frankly a bit too esoteric!

 

I’ve started this thread in order to build a little “mental toolbox” of practices that we all can use when we need it.

So what techniques do you know of or do you use that help you to overcome your psychological obstacles?

 

Let me try to start this:

 

Scenario I: Concentration

Regarding my concentration problem I will start to do this step by step exercise as of today:

http://www.successconsciousness.com/index_000005.htm

 

Scenario II: I screw up just about everything

A while back I read/heard about this technique: Get up of your chair. Walk about 3 meters away from it. Look at your desk, computer and chair and visualize yourself sitting there in the state of mind that you want to be in. Focus this state in your mind, sit down and do it!

 

If we can get a couple of simple to use techniques together for different scenarios, I’m sure this would help a lot of people!

 

Good trading and a clear mind,

Flojomojo

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ok...to be honest I'm really surprised about the zero replies this thread has got so far! Did I miss something during my search so an equivalent thread already exists?

I know that there are a lot of great ppl out there that have reached that mental "zone" necessary. I also believe all of you who have reached this state of mind have gone through a loooong process.

As I believe that mental structures can be altered on a step by step basis by adressing the various problems, I will try to find out more. I will keep you updated as I go along. I've studied physics, not psychology, so please excuse if my next post will take some time. :)

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I read your first post in this thread and didnt feel any need to reply. I think that the psychology issue is well described in several books and in many post here on TL. The problem is that while most of people can read how to behave right, actually only a very few of them can change their behaviour only because of something they have read. The majority of us need to be forced to change, and we must realize that there is no other way. And this revelation doesnt come with reading, but with losses. I am a newbie and I also experience that while the holy grail quest is quite exciting and interesting, as I gain more and more market understanding, the inside quest is something that I know I must do, but I am not looking forward to it much. It is a dirty work and not pleasant at all to dig in all that shit and sweep it away...

Anyway, my point is that it is nice to read about psychological issues, but if you dont come to a certain point yourself, you are not able to fully appreciate experience of the others. And once you are at that point, the experience of the others can show you the way, but you must take the journey yourself, anyway.

About the concentration issue: I think this is fine tuning your psychics. First one must learn discipline. Then he can develop objectivity, then concentration. Not many people get through the discipline issue, so they eventualy never get to the concentration development. So dont be surprised with the lack of interest in your thread.

 

Just my 2 cents.

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I read your first post in this thread and didnt feel any need to reply. I think that the psychology issue is well described in several books and in many post here on TL. The problem is that while most of people can read how to behave right, actually only a very few of them can change their behaviour only because of something they have read. The majority of us need to be forced to change, and we must realize that there is no other way.

 

I totally agree with you that there are enough books, posts, etc. about the "what is the right mental stuff / you should be this / you should be that" exist! But in my opinion they always only describe the goal. It is the sidetrack bumpers on the way that interest me! You say we have to be "forced to change"...and you are right...so what are the psychological tools you can use to force you to stay on track when you realize you are drifting off?

 

There's a reason why for e.g. SAC still employ Ari Kiev...otherwise they would just say: "Read this guys book". It is the concrete exercises that a psychologist assigns to overcome a traders barriers that are so valuable. It is the communication of these hands on methods that make their bread and butter. And it is these methods that I understand as "toolbox"! It was these rubber-hit-the-road-psychological-exercises that I hoped to condensate in this thread.

 

And this revelation doesnt come with reading, but with losses. I am a newbie and I also experience that while the holy grail quest is quite exciting and interesting, as I gain more and more market understanding, the inside quest is something that I know I must do, but I am not looking forward to it much. It is a dirty work and not pleasant at all to dig in all that shit and sweep it away...

 

It is pretty messy for me too...Good luck! :)

 

Anyway, my point is that it is nice to read about psychological issues, but if you dont come to a certain point yourself, you are not able to fully appreciate experience of the others.

 

I'm not looking for experiences or fairy tales, I'm looking for concrete psychological methods!

 

... So dont be surprised with the lack of interest in your thread.

 

Maybe this is the wrong place as this is a forum for traders and not psychologists.

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I just read "Trading in the zone" from Mark Douglas a couple of days ago. Attached you find my favorite passages from the book. Maybe some of you like the points and can reuse them for achieving your own proper trading mind-set. :hmmmm:

 

Good trading,

Flojomojo

080817_Extracts_from_TradingInTheZone_Douglas.thumb.jpg.adcecfa6e61c7b989a4aada4c7aa795d.jpg

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read up on market profile and then get a notebook with graph paper and start hand charting the instrument u trade ,this will force you to concentrate on the market,it will help but its not everything,the other thing you must learn in a psych way is humility,you have to admit that with mastering ten mrkts and subscribing to the best gurus,as much knowledge as you can gather,you will still have a miniscule amount of the info thats out there and you will be wrong a majority of the time,with this attitude you will be happy to take small losses or no trade at all and protect your capital,learning how to take small losses will keep you in the game,problem is ,it takes so long to accept this way of thinking that you will lose a lot while learning. That sounds simple but it is one of the hardest things to improve at.There was a post on tl with a great list of resources for mp and other stuff,i will find it and repost.

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Guest forsearch

Got a "404 not found" error with your link, ammo. Seems to be case sensitive - try this one:

Edited by stanlyd

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