Day Trading Clarity By: Mohan
“We trade on our mental state and beliefs about trading”. – Mohan
Today I want to touch on the most important subject in trading once you have found a
proven, tested and reliable system to trade.
That is what I call the Traders Mindset. The fact is we only trade our current mental state and beliefs about trading. Those beliefs are what cause us to click on the mouse and exercise a tangible bet based on our faith in what we think the market is telling us now.
There are only essentially 2 real necessary ingredients to precision day trading and intraday swing trading.
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Those are:
- Having an absolutely reliable, proven, back tested and live tested over several months (minimum) trading system that really, really works. If you have this then you will have strong confidence in your system
- A trained and developed Traders Mindset which allows you to trade your proven system without your emotions getting in the way and screwing up the results of the system.
The entire goal of trading is to discover these two elements and then correlate them to your advantage to making money and living your lifestyle as a trader.
This is not an overly simplistic view but a primary focus that I often see traders lacking. This lack of vision on the part of the trader can often be due to several reasons.
Those can be anything in the “information overload” department from using too many indicators, too many squiggly lines on the charts, trying to follow too many advisories, or just getting swept up in the excessive variety of trading methods out there.
Back in the earlier days of trading (pre 1990) you HAD to have a strong Traders Mindset to survive. This is still absolutely the case today except with all the “smokescreens” of so many indicators and systems today’s traders are not as aware of the vital importance of TM.
As a trader myself from the “old school” I thought I would tell you a rather interesting and perhaps humorous story that you may get a kick out of. Older traders will remember this fondly I expect.
Back when the first all day financial channel came out during the early 1980′s there was a big stir in the air. It was called FNN…Financial News Network. Wow! being able to turn on your television and get live (almost) quotes from the exchanges and on some stocks.
FNN later was merged with NBC’s new fledgling CNBC which was struggling to get cable line up acceptance.
https://en.wikipedia.org/wiki/Financial_News_Network
During that time in the early 1980′s I was the international marketing director for a company that developed the worlds first long range portable car phone. That right! you could take it out of your car and on the golf course, restaurant or anywhere you wanted. That was huge news back then. The phones retailed for $3995 each and every sharp executive wanted one. I had people coming into my office from all around the globe wanting to establish a distributorship.
FNN approached me to sell the new executive phones on their new financial network. After looking into what the Financial News Network was doing …I was hooked. Trading just seemed so cutting edge and fascinating. Gradually cellular phones were introduced by Motorola and I became a trader.
Later in 1987 we used to trade what we called “the Knife” (NYFE….the New York Futures Exchange) to trade their smaller size version of the Chicago rival S&P500. The NYFE traded options and futures on the NYSE composite index which almost mirrored the S&P500 at least in the price movements from a trader’s point of view.
You had to place your orders by phone and the best deals brokerages were offering was to have “direct floor access and a one ring policy”. That meant you were calling right to a broker right near the floor and they promised to pick up the phone in one ring.
You would place your order and then sweat for anywhere from a few moments to up to a minute or more while the broker read your fill back to you. You would place your stop and sit with your finger near your phones speed dial if you had to get out of the trade right away. Pretty challenging and indeed tense.
Without a properly trained Traders Mindset you absolutely could not handle the pressure of trading this way what to speak of making money. Anyway things have developed from here and now we sit in a trading world which covers the entire gamut of everything imaginable….and then some.
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Best Forex traders worldwide, give you advice for FREE to buy or sell. ZuluTrade converts this advice to a live trade in your broker account automatically, again for FREE! Unique service, I have already opened an account!
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About The Author
Mohan
Scott D. Wolfe, known as simply Mohan, got his first taste of the limelight before an audience of 10,000 cheering fans when he was lead-singer and lead-guitar for a 70’s rock group. Exhilarating though it was, Mohan was not ready to be a “rock star”. So he left the band in search of a higher purpose. Producing a film-series on ancient anthropology and serving as international marketing director for the world’s first hand-held car phone, Mohan spent several years traveling around the world.
People and cultures from every corner of the planet made an indelible impression on Mohan. And when he took up trading, shortly after the crash of ’87, their influence contributed to his success. Built on the wisdom of early masters, such as W.D.Gann. . .Enhanced by laws of nature, gleaned from civilizations near and far, old and new. . .Honed by ten years of dedicated effort. . .Mohan’s technique designed to forecast market direction emerged. . .
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