Since I think of the market as a game where the money one makes as way to keep score the following fits perfectly into how go about playing the market. I just saw the below tonight after reading the Bull Market Report. Funny how they mention making smaller trades after you rhythm is off, I do that very same thing myself.
<<6. SPORT PSYCHOLOGY FOR THE ONLINE TRADING ATHLETE
What does a great athlete share in common with an online trader? Think
about the situations they both face:
* Suddenly changing conditions requiring quick decisions
* The demand to attain excellent performance consistently
* Need to analyze large amounts of information to make a simple decision
* Pressure, pressure, pressure
* Good practice and preparation leads to great performance
For these reasons, and many others, we like to think of the traders we
work with as athletes -- Online Trading Athletes. Our expertise combines
Sport Psychology and trading (Shane is former Head of Sport Psychology for
the United States Olympic Committee, Doug is a sport psychology consultant
and has traded for over 5 years). We've found that the strategies and
concepts of sport psychology are readily applicable to online trading and
can make a huge difference in results. Over the next few weeks we'll be
sharing some of our ideas with you in our "Nine Inning Series" on online
trading.
Keep your head in the game and Stay Focused.
TheFocusedTrader
Shane Murphy & Doug Hirschhorn
1ST INNING
SPORT PSYCHOLOGY FOR THE ONLINE TRADING ATHLETE -- AN OVERVIEW
Online trading is a game. But, instead of practicing and watching game
films, you study the charts, graphs, earning reports, summaries, and
estimates. If you're well prepared, you won't care whether stocks rise or
fall. You'll stay relaxed and focused. You'll identify your entry and
exit points and you'll execute with discipline. If you fumble or make an
error, you won't fret because you know there's always another opportunity
for success. Think about it. You have no long-term vested interest in
the companies that you trade, no retirement plan, no management to
impress, no interview to sweat. You're an online trading athlete.
You want to be in and out, in and out as many times as you can, taking
fractions of a point each time. If that company goes bankrupt tomorrow,
you don't care because there is always another game going on somewhere in
the market. So with this in mind, instead of looking at it as a business,
see it from the athlete's point of view. After all, online trading is
just a competitive game, right? So since it is a game, we want you to
start thinking of yourself as an "online trading athlete."
Think about the analogies between you and a baseball player. Instead of a
baseball, you have 'teenies' or 'eighths' or 'quarter-points' to toss
around. Instead of a bat, you have a keyboard. Instead of swinging, you
are placing orders for 1000 shares. Want to take a bigger swing? Looking
for that homerun? Change your order size to 5,000 or 10,000 shares.
Having an 'off day' and not feeling your rhythm? Then pick up a "smaller
bat" and move your trades down to 100 or 300 shares at a time. Maybe lay
down a few bunts and get your timing back. If the pitcher is throwing gas
(fast market), then take a few pitches until you find one you can handle.
In other words, see the market from an athlete's perspective.
You are not the first person to trade the market and you are certainly not
the first person to try to make a living doing it. Avoid being the next
person to take those big homerun swings and striking out like "Casey at
the Bat". Because, remember, 'there is no joy in Mudville anymore'.
Don't worry, the market is not going to disappear. It'll still be there
tomorrow. Money will be waiting for you there. Patience. The trick is
to make sure that you can afford to put the uniform on when it is game
time again.
No matter how you slice it, some things are certainties. Online trading
is a competitive game. The sun will set tonight and rise tomorrow and
along with it the market will close today and reopen tomorrow. The only
question that remains is, do you have the Motivation, Discipline, Control,
Confidence, and Balance to put the uniform back on, get into the lineup,
and step up to the plate when the umpire yells 'play ball'?
Think of us as your "mental coaches". Using the methods of sport
psychology, we're here to teach you the mental skills you need to succeed
in your career as an "online trading athlete". Athletes use sport
psychology to achieve consistent success by performing well under
pressure. We're here to help YOU perform your best under pressure.
Over the next few weeks, we will be offering a series of articles on the
mental approach to trading. Keep an eye out for our 2nd inning where we
will be looking at the Three Mental Keys to Becoming a Successful Online
Trading Athlete. So until then.
Stay Focused.
Doug Hirschhorn & Shane Murphy
Email: TheFocusedTrader@aol.com
Phone: 203 459-0515
Copyright 2000, TheFocusedTrader>>
Greg |
