Quote for the day

"Take the opportunity to learn from your mistakes: find the cause of your problem and eliminate it. Don't try to be perfect; just be an excellent example of being human." - Tony Robbins

Five Keys to a Peak Performance Mindset for Best Trading

By Brett Steenbarger, Ph.D.

What is the right mindset for best trading? Here are five ideas, drawn from successful traders I've known and admired:

1) An open mindset – Traders succeed when they see things that others don’t. Sometimes those are overarching themes and trends; sometimes they are short-term patterns in market behavior. To see things differently, we need a mind that is open to new and different information and open to shifts in market behavior.

2) A quiet mindset – Minds filled with noise can’t process new information. When we’re focused on ourselves and our profits/losses, we’re no longer focused on markets. We can’t exercise self-control in our actions if we are not able to sustain control over our thought processes.

3) A constructive mindset – Losses happen. We miss opportunities. The great trader learns from mistakes and embraces the lessons from drawdowns. If every day brings wins from trading or wins from learning, there is always something of value to be taken from each day.

4) A positive mindset – It’s because we cannot count upon our profits and losses to make us happy that we need to lead a fulfilling life outside of trading. A life that is filled with meaningful activities, fun activities, activities that bring us close to others, and activities that give us energy is most likely to provide us with the emotional fuel needed to power through challenging market times.

5) An action mindset – All the best ideas and intentions will get us nowhere if we aren’t prepared to act upon them. The action mindset is one focused on plans, translating excellent ideas into excellent risk/reward opportunities. Preparation is idea-focused, but also execution-focused. It is as important to work on our implementation of ideas as our generation of them.

The above criteria form a useful checklist for making sure you're in peak performance mode. The right mindset won't, in itself, bring profits, but the wrong mindset can ensure losses. At the end of the day, trading requires skill in the processing of information. When we work on our mindset, we keep our information processing engine well-tuned.

Source: http://traderfeed.blogspot.com

Quote for the day

"Success is a lousy teacher. It seduces smart people into thinking they can't lose." - Bill Gates

Quote for the day

"In three words I can sum up everything I've learned about life: it goes on." - Robert Frost

Quote for the day

"Do not measure success by today's harvest. Measure success by the seeds you plant today." - Robert Louis Stevenson

12 Rules for Good Trading

Here are twelve great rules that can give new traders a quick list to see what the right questions to answer that will lead to good trading and also a guide to more experienced traders that just can’t get to consistent profitable trading over the long term.

1. Create your own quantified trading system with an edge that fits your own goals for potential returns and your personal risk tolerance.

2. Keep your internal mental dialogue positive using both logic and reason as your thoughts to council yourself in during your trading.

3. Only be friends with other traders that are positive and helpful in your journey.

4. Only compare yourself with your past performance not other traders. Everyone has their own goals and path.

5. Do not do anything that would hurt your confidence in your own discipline.

6. Do not concern yourself with anyone’s trading results but your own.

7. Focus on learning how to build your own trading system not following other people’s trades.

8. Always be honest with yourself about your own knowledge and understanding about trading and the markets. Confidence can only come after competence.

9. Assume you can learn one valuable trading lesson from every trader. Even if it is what not to do.

10. Be precise in your risk management but flexible in your expectations of outcome.

11. Encourage new traders to learn the importance of position sizing, entry and exit signals, and the right mindset.

12. Help new traders when you can share your own experience to shorten their learning curve.

Source: www.newtraderu.com

Quote for the day

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins