BUSINESS ERA

I was a professional trader for 23 years and quite confident that my experience in this business consistent with the experience of many, if not all professional traders. I have experienced and the successes and failures and the times of satisfaction and frustration. Like others, I had to develop and grow as the markets and market-based instruments have changed over time. Markets constantly forced me to re-affirm their values and reflect their own self-motivation, and even after all these years, I have been forced to confront the fears and doubts.



Fortunately, I am equipped with the knowledge of how powerful is the positive thinking and the ability to apply this tool in their daily practice.



When the markets closed, I share his time equally among the preparations for the next day, market research and work on his morale. Part of that involves reading a few paragraphs of motivational books every night, studying sports psychology, or impact on the physical aspects, such as exercise, diet and food that support my ability to focus and concentrate during the day.



Unfortunately, I can not say that was the point or moment when I felt as if I had reached perfection. However, most often than not, I feel as if I did not even come close to reaching that point. I accept the fact that this business was nothing but a continuous process, which will be launched once like many other efforts in life. For me, the term «trader» became a synonym for «lifestyle».



I realized that everything I do with my way of life to support the function of «trader», equally supports me very. Most of this is aimed at removing the stress, anxiety and peregoraniya. I have experienced them many times in his career, and each time it is reflected in the performance of my trade. My experience is not a hard life so different from that experienced by many people - death, divorce, and taxes. I zhongliruyu many balls at once. I sell, manage their businesses, responsible for ten employees and one children. I accept the responsibilities of the heads of the household, and I serve a great property. In addition, I have other interests and hobbies.



Stay in the game, defeated the stress



I would like to say that I am very rational people, but it is not. I pull rubber and delay things for later. However, I became a master of stress and anxiety and how to be with the mental side of trade. I imagine that if I can take care of this specific area, the results will be achieved automatically. It worked for me over the years and allowed me to stay in the game.



So, let me share a few things from my personal experiences, traditions and rituals, in order to manage some of the most important psychological aspects of trading. Sometimes, traders may feel alone in their experiences - especially when there are stupid mistakes and big losses, and over long periods of low activity. Believe me, I make every mistake described in the textbook, has suffered for many sleepless nights and talked with more experienced traders. Having gone through all this, I never wanted to leave this business. I do not like to sell, and I do not hate trade - this is just what I do. I love to work.



Some people are lucky, just find your game, and I am one of those people. I know the style of trading, with whom I feel comfortable. I never will be a long-term player, following the trend, and never will be one of those who are easily interpreted by fundamental factors, or long-term fundamental changes in the trend at the macro level. I never would feel comfortable selling to a strictly mechanical system. And I do not want to trade in ways that are totally dependent on my reflexes. Remember that a trader can not begin to improve their game, yet he is not precisely define, in what game he plays. At this stage of my career, I know their abilities, their strengths and weaknesses. I try to exploit their strengths rather than to become someone whom I never shall. This is something that you should try to develop in themselves. Know yourself.



Positive attitude



So, know your game is useful, but only knowledge of his game does not mean that I preuspeyu this. There are many things that needed to be done outside of market hours in order to succeed in the trade. I can go through the stages of preparation, organization and vnerynochnogo study. But I did not think that these are the things that guarantee success. Of great importance to me is the fact that I believe in what I preuspeyu. I will configure itself each day at the confidence that I preuspeyu, especially during periods when the inevitable doubts creep. A positive mental attitude is a form of religion for me.



Doubts kill success



If the trader has a positive attitude, it allows him to believe that focusing on the process, the results will be achieved by themselves. This involves an element of trust. Sometimes it's like to jump into the water from the tower - dive knowing that if we are to carry out a form, then we have to enter the water and show beautifully executed jump. Some people may be difficult to accept that if all of a sudden, my form is not completed accurately, you can get injured during the impact on the water. If doubts or negative thoughts invade my head when I «dive with the tower», I am doomed. I have so many tricks to eliminate negative self-attitude that positive thinking is just a habit.



Conversation with myself - this way, when we speak directly with one another, and sometimes negative thoughts are weakly perceptible. For example, if a trader says to himself, «I must succeed» or «I have to do a certain amount of dollars this month», then this type of thinking automatically creates tension and anxiety. Anxiety is an emotional decision-making at the time of trade. Emotions invariably lead to a losing transaction.



The first step - understanding



Removal of negative thoughts - it is a process. First, you must understand, when you think negatively, and to recognize that you can reorient their thinking pattern. Simple perefrazirovanie your mental model of «I must succeed» model «I can succeed» is a step in the right direction. The first sentence establishes the requirement for performance, while the second sentence underlines the confidence in your abilities. Second, suspend the negative thoughts, changing your physical state. Hlopnite's hands, push your fingers, or stand up from his chair. Third, reorienting their thinking on a running process to replace the excitement, the doubt or concern. «I can trust myself to make the right decision today», «I can use the emerging opportunities in their own interests, as they open during the trading day».



These processes seem to be quite simple, perhaps even intuitive, but they are likely not as intuitive as might be assumed. Positive thinking - this is something that requires training.



It is hard to overestimate how important was the positive thinking in my own trading career. This enabled me to overcome every setback, which happened in the market and convert it to get experience. I tell myself that all that neither happens, happens for some reason. Therefore, I must find a way to convert it, just as in sport. Look at tennis player who is losing the band during the competition and lost six games in succession. The situation looks rather bleak for the visitors. However, the player can make a breakthrough victory. And sometimes his opponent makes stupid mistakes. Top athletes have captured a small victory, and convert that momentum in their favor. This also happens on the sports team competitions such as football or volleyball, where one goal of providing a new impetus to the explosion, which has a playback command to victory.



The positive point of view



Trade, in this sense, is no different from sports. Convert negative experiences into positive and look for a way to learn from them. For every mistake that I make, I say to myself - well, that it happened now and I am thus able to learn it, but did not take place, when I traded a greater position in the future. I thank the market for drawing my attention to any of my weaknesses, so that I can learn and improve it. If market conditions have changed or ceased to market environment conducive to my game, I tell myself that I was given a great opportunity to do research and find new methods. All my best research occurred after the recession.



There is an excellent line of «hard work» and peregoraniem. I took the difficult path to set boundaries and define its limits. In the past I did not want to admit that I have any limits, and as a result had his immune system to danger. Better to recognize when it is time to stop a bit, rather than wait for the deterioration of health, or face big losses in trading.



Most traders know when they make mistakes. But when a trader peregorit, he was not able to respond adequately to correct the error. As if the inner voice said - «This loss is going to become so big that it will force you to relax from the market».



In addition to the physical signs that may indicate peregoranie, other signs include increased irritability and anxiety, forgetfulness and inability to concentrate. Traders who are more likely to be taking a big risk when peregorit. The delay, fatigue, a disregard for proper performance of pre-trade or inattentively relevant to the current position is often the next step. When someone peregorel, it is likely to increase the consumption of coffee, water or alcohol. Ultimately, peregoranie can lead to thoughts about «discarding towels» - leaving the business altogether or chronic depression.



Practice common sense



The main strategy to avoid peregoraniya is to lead a healthy and balanced lifestyle. This may include daily exercise, healthy food, hobby or outside activity, periodic vacations or even taking one day at the weekend to go to nature and enjoy the changing environment.



Educational strategies include visits Kurova or seminars, joining professional organizations, reading catalogs, or books on sports psychology and motivational subjects.



Sometimes changing the working environment - something simple, such as changes in the office - can make a novelty. Finally, it is very important is some kind of support system - a close friend, fellow-trader, or someone else who you can trust. Every time I have difficult periods, I have a sense of relief after the discussion, the trustee of my situation with a friend or friend-trader. In the end, we all have a similar experience in a particular case. Losses and errors are part of the game. Talk about them with other people helps us to move our normal human weakness due to the distance and allows us to move forward.



Three «R»



Let me introduce you to three «R», which I use to maintain their morale and the preservation of: Record Report (record), rituals (rituals), and a study (research).



Record Report is a starting point that leads the trader to the level where the trade is simply «hobby» to the next step «professional» status. At the end of each day, I record the statistics, like the range of market volume, value indicators and the ratio of supply / demand, to select some of them. I did it the first day, when I started trading. Once I updated graphics manually every night, because there was no graphics program, which we use now. During the past 15 years, I have to manually record closing price of 25 different markets, in addition to the values of the momentum and some other notes. If I did not record data at night market, I also do not sell the next day.



During the day, each transaction is recorded along with the number of orders, time and cost performance, along with the name of the broker, have fulfilled the order. This is to resolve any problems the next day and, ultimately, could save a lot of time, when in fact there is an error. I also write down your daily deposit available for trade, along with the current open positions.



With the use of electronic platforms, has never taken as obvious that the transaction will be properly reflected on the following day. The platform that I use, keeps an accurate record of all transactions that I make, so I did not actually write them, but instead to keep the registration file.



Compared with many other types of business, trade and markets may seem somewhat abstract arena. Actions such as the recording report helps me feel more productive and controlling your business. I do not teach statistics on the trade - Statistics on implementation of trade, such as the ratio of the winning and losing deals, the average gain and average loss. I believe that this will become a source of anxiety or stress for me. Instead, I have control over their assets of the curve and I do it monthly, not daily. Why? - Sometimes it's easy to perevozbuditsya, looking for profits after a large premium of the day. Big wins can have the same effect on the psychological state as well as heavy losses.



Traditions and rituals are an excellent tool to address the emotions, particularly the doubts, fear and anxiety. Although I personally do not have any special rituals that I could share with you, I believe that the maintenance of records is particularly useful for me. I will write a plan for the next trading day after the closing of each day. During the trading day, I will briefly record maximum and minimum fluctuations, as they are during the day. Many years ago, when I started trading in the exchange hall, I watched as many of the best traders diagram graphics «tic-tac-toe» or graphics fluctuations hand, during the trading day.



Physical and mental rituals - is key to building both confidence and consistency. I can not overemphasize the importance of this aspect in my own business. This is not only the ability to concentrate, but also the focus of our concentration. If you focus on the wrong things, it leads to a negative result. Most of what I do during the day - a simple observation. But I have very specific traditions and rituals of what things and how I see during the day.



At first, I concentrated on watching only a few ratios. Although I have built their capacity to handle large amount of information, I can still «boil brains» like any other. If I try to do too much or sell too many markets at once, I can get into a nasty situation. I have certain times of the day, when I draw attention to some relations. I have a limited range of market instruments, which I watch. I have three basic models, which I watch on the currency markets. In this regard, I am a reader of classical data waiting for their specific technical requirements or market conditions. This is my market tradition. You may have others that are more suited to you.



Outside the market raporyadka have privacy mode. For example, I try to get up every morning at the same time, take their nutritional supplements and have the same breakfast. This helps me «to enter the zone» or «to be on autopilot» before the opening of markets. These mental and physical traditions help me maintain my concentration and let me be distracted by other things. If the concentration is broken during the day, it's easy to become vulnerable. I always take action against external distraction and keep the philosophy that if something can be done at the end of the day, you will need to wait until then.



However, unexpected things will always happen during the day with all traders, regardless of how he may try to insulate themselves from the «noise». Once, a neighbor decided to move a little bit of huge trees in front of his house. Giant excavator royuschy for the pit, stretched all the telephone cables in the neighborhood, including our T1s. It took 24 hours to correct the damage. Such things always happen with every one of us whenever you have the most open position.



In addition, I believe that my record of data at the end of each day will be just another significant ritual to help me forget about any adverse events that occurred during the day, whether it is a violation of the telephone line, or what some problems in the family.



Third «R» - study



The study is an integral part of my business, and as for the trader, this should be an important part of your. The study - a process that never ends. I am absolutely confident that if I do my own research, I will always have an advantage over those who had not.



The study is important, even if the trader has a successful method of trading. Anyone who has been on the market for some time, witness the fact that market relationships are often altered. Thus, the study gives me confidence that there is merit in my approach to trade. I constantly improve their study in order to maintain this confidence at a high level. Study constantly reminds me that trade is a game of probability and the mean values, and shows all the ways in which the signal or the model may fail.



Please note that the study should never be done to confirm their prejudices. This type of research too often leads to conclusions based on a limited number of examples, and generally disrupted over time. I attach very little value to the study, conducted at less than 200, the number of examples.



Encourage yourself



Every day that I sell, I constantly remind myself of how far I have progressed. That would be so easy for me to evaluate my own work alone every day. Instead, I single out the area where I moved. Yes, «Old Dogs» should explore new tricks. I see how to improve my skills in the use of electronic trading platforms. For many years, I just dial a phone number, and to make reservations. The first two years, when we began using an electronic platform, I simply could not operate profitably with it. My brain could not take the extra steps required for placing orders. The only way that I could sell was that it had to be someone else in my office who could be executed, while I call warrants. I felt rather foolish inability to fulfill their own orders. I have tried many different trading platforms before you find one, which I feel comfortable. There was some learning involved in understanding this.



Keep your brain in the game



Trading really is no different from most sports. I just try to mentally stay in the game. I know that my involuntary error decreases as the market, my training and level of experience increases. I transform the emotions or disorders in the study or the best marketing training. I know your game and work hard to eliminate less profitable deals. I know that the concentration of the process would ensure that the results will be achieved automatically. And finally, no matter how many hours a week I am going to work - 40, 70 or 100 hours - I will not be successful if I do not believe in their ability to be successful. Positive thinking, combined with hard work and proven traditions, will always win over the doubt, fear, internal stress and other negative psychological aspects of trading.


Linda Bradford Raška
www.lbrgroup.com