If you are like me, you probably can recall a trading experience when everything seemed to go well. Your interpretation of the market was spot on, you had a great entry price, you managed the trade well and you exited with a nice healthy profit. I love trades that go well, and I am sure you do as well.
Sometimes a trade doesn’t even have a chance. Sometimes our attitude and confidence level affects the trade before we ever pull the trigger. I am talking about trading psychology. But how can we, as traders, improve our mindset so that we are at an optimal state when we get ready to trade? There are three simple things every trader can do to get into a positive and productive mindset when trading.
- Listen to Music – One of the best ways to put yourself into a positive, productive mood is to listen to some music that you enjoy. While any music you enjoy should do the trick, you must also consider what type of trader you are. For instance, if you find yourself agitated and concerned about your trades when trading, perhaps some relaxing music rather than invigorating music is the way to go.
- Recall a Great Trade – Another excellent way to place yourself into a productive trading mindset is to think about a successful trade. Recall what you looked like when you took that trade. What were you wearing, where were you, what would you have looked like to someone peering in through a window, watching you during that successful trade. What did emotions did you feel before, during and after that trade? Just thinking about this trade should help remind you that you can do very well when you trade, and it may help to place you into a productive frame of mind.
- Relax and Concentrate – The most common psychological problem traders have while trading is to become too anxious. One of the simplest ways to relax is to adopt a quick breathing meditation. Here are the steps for a quick breathing meditation:
Breathe in through your nose, hold the breath and breathe out through your nose.
- Breath both in and out of your nose. Hold your breath briefly before exhaling.
- Use a rhythm that makes sense to you. You may decide to inhale for 3 counts, hold the breath for 3 counts and exhale for 3 counts.
- When you inhale each breath, try to follow this progression. First fill your belly and low back, then fill the sides of your ribs and lastly fill your upper chest.
- You will probably complete one breathing round in about 12 seconds. You can do four complete breath cycles in one minute. How do you feel after one complete breath cycle?
It may take some work to learn how to get yourself into a great trading mindset, but it may be well worth your efforts!