Winning with energy!

Did you ever read about or hear someone talk about energy (about people or events giving you energy and people or events taking your energy away? Well, energy for a trader is very important. In fact, energy is vital for peak performance. Without energy a trader finds it difficult to feel, to see and to hear the whispers of available information. For a trader to be successful the brain needs to be rested. The brain is like a muscle; to work effectively it must be in a state of relaxation (calm). Thus, for the brain to receive all the significant stimuli, it must be in a tranquil and confident state. If you are a sports fan, think about how and why some performers are better than others at critical times. The “Big Dogs” know how to relax to accomplish the task. My point in sharing this information is to let traders know that when they are without energy, have a cluttered mind, it is very dangerous to trade. When one is without energy, lethargy sets in. Lethargy is represented by the Dark Knight (the ego, the voice of distraction within). The ego’s delight is to get the trader into a state of anger or panic. Thus, the trader is encouraged, baited, tempted, to do something out of the ordinary i.e. to trade a 50 lot when the trader is a 5 lot trader. Without energy, it is impossible to challenge the dark knight of the brain. When lethargy kicks in, the trader losses are inevitable. So, if the trader has had an argument with a spouse, someone cared about is ill in the family, or any adverse event has caused the trader disappointment or stress, the trader must be wary. Remember a trader does not have to work everyday. So, if you, the trader, is not feeling strong, you should not trade. I know, all winning traders enjoy the challenge of the day, so they want to come to work. I know all winning traders enjoy the camaraderie of the environment. And I know, all winning traders just plain enjoy making money, doing what they want to do. Also, I know it is hard not to trade when the market is open for business. However, great trading, good trading revolves around not only knowing the market but knowing oneself. To be a champion trader one must first know oneself. Knowing yourself involves examining your thoughts and examining just how you feel each and every day. How else do you know whether or not you are ready to compete? How do you know how you feel? Ask yourself and listen to the answer……. Some days it pays to stay away from trading. Depending on the extent of the depletion of the trader’s energy, the trader may have to stay away for an extended period of time to regenerate his or her energy. Playing the game, when one should not play, may cause the trader to be seriously injured (lose more money than desired)! Note: When a trader recognizes that his/her fuse is short, it is a good time to take a break. It makes no sense to let the "Dark Knight" (your emotional state) control your decision making. The Dark Knight’s goal is to place you, the trader, in a self destructive mode. Maintaining a high energy level keeps the “Dark Knight” on the side line.

More on Energy!

Did you ever hear about people or events giving you energy and people or events taking your energy? Well, energy for a trader is very important. Without energy a trader finds it difficult to feel the market, to see what really happening in the market and if you are on the floor trading - to hear the market. For a trader to be successful the brain needs to be rested. The brain is like a muscle, to work effectively and completely, it must be in a state of relaxation (calm). Thus, for the brain to receive all the necessary stimuli it must be in a tranquil, confident state. If your are a sports fan, think about how and why some performers are better than others. My point in sharing this information is to let traders know that when they are without energy it is very dangerous to trade.......Lethargy sets in and waiting in the wings is the dark knight, of your self, preparing to get you to panic or do something out of the ordinary Without energy, losses are inevitable and can be expected. Energy reducing activities expunge energy. So, if you have had an argument with a spouse, someone you care about is ill in the family, etc. or any adverse event has caused you disappointment or stress, BEWARE. Remember as a trader you do not have to work everyday. Conversely, all winning traders enjoy the challenge of the day, enjoy the camaraderie of the environment, and just plain enjoy making money, doing what they want to do. It is hard not to trade when the market is open for business. However, great trading, good trading revolves around not only knowing the market but knowing oneself. To be a champion trader one must first know oneself. Knowing yourself involves examining your thoughts and examining just how you feel each and every day. How else do you know whether or not you are ready to compete. Traders can and want to play every day the market is open. However, some days it just makes sense to stay away from trading. Depending on the traders energy the trader may have to stay away for an extended period to regenerate his or her energy. Playing when one should not play, may cause the trader to be seriously injured! A point to remember is when you discover your fuse is short, it is a good time to take a break. No sense in letting the "Dark Knight" (your emotional state) control your decision making, because placing you in the self destructive mode is his goal.

From the Pit to the Screen!

I am disturbed that many of the floor traders have had a difficult time trading on the screen. In fact, many traders are considering leaving the business because the transition they say is too difficult. Floor trading was difficult for many when they became traders on the floor. However, most traders have forgotten how much time it took to launch a floor trading career. I don't believe floor traders need to give up their passion or their career. Floor traders need to understand that learning to trade on the screen is like learning to hit a curve ball, if you have been a fast ball hitter. Learning to hit the curve ball takes diligence, time and patience. Gauging the speed of the curve ball and or gauging the distance of the curve all takes time, possibly years. Of course, the experience of failing is painful, but at the end of the day it is worth the effort. In time, with the appropriate execution screen, with the appropriate pricing of the screen, with a trading strategy , and finally trading any other commodity other than the commodity traded for years, for decades on the floor, one can become a successful screen trader. How much time? Each trader is different. Thus, progress will be commensurate with a traders patience, perseverance, and a strong desire to succeed.

How to Win Trading Electronically? Lesson #1

First, and foremost I believe no matter how much starter money one has to trade, he needs to have an inexpensive experience. I say, inexpensive trading experience for the development of confidence takes time.

Thus, I always recommend traders to trade fx products that have no expenses tied to the execution screen, cost of trades, and charting services.
Furthermore, when trading these products today, it gives an individual a reasonable chance to succeed because of the trending of the currencies and the inexpensive tick value(as low as a $1.00 a tick). If what I just said needs explanation, please call me at Dowd-Wescott 312-604-6061 in Chicago.

No matter, who explains electronic trading to you, the new trader (this includes former floor traders) must realize that to become a successful screen trader will take time. See my stages of trading to understand the value in making trades and the value in experiencing & handling losses. Trading today is not an "immediate gratification" game. To become a big time winner and earner as a trader, one is going to need thick skin, an ability to be resilient, the courage of a lion, and the stick-to-itness of a man on a mission of passion.

Energy

When competing, one expends a great deal of energy. At the end of any given day a professional independent trader has spent physical, mental and emotional energy. Whether the day's outcome is favorable or unfavorable, energy has been expended. My suggestion to traders, in this day and age with volume low on the floor and with little edge on the screen, is to conserve energy. Have an upside $$ amount that is predetermined and a downside $$ number that is predetermined to end the day. Thus, when the trader is close to the $$ number he expects to earn, the trader is done for the day. Trading all day is an activity of past generations. The brain is a muscle and it gets tired when under severe stress and strain. How long can one curl a 5lb weight in each hand? Hours? A typical trader's story is that "I make money in the morning and gave it back in the afternoon". "Y" do you lose money later in the day? You lose later in the day because your brain is tired. And, what about the energy expended to be up money in the a.m. and to give the money back in the p.m.? Try coming back the next day and feel energized after losing. "There is such a thing" ( an old expression) as being mentally, emotionally and physically tired. Trading and working at most jobs is different. In this job of trading futures, when you are up near your goal, take a hike (literally). The next day, you will have a much better chance of winning again.

Self-Confidence for Traders

There is a way to build self confidence besides having winning trades, winning days, winning weeks, winning months and winning years. You can build confidence through weight training. Can having a personal trainer help you? Maybe, but......... While training runners, I developed a unique weight training system to foster self confidence, and it works. It's easy, it's fun, and you can do it everyday...women too. Believe me self defense, martial arts, or yoga etc. can't build confidence like my Self Confidence Builder Program (SCBP). Will the program help you with your trading? What do you think? There is no loss here. When you look in the mirror, you will see somebody that you like, maybe even love, if nothing more! Call and ask me about the program!

Lately, I have been working with traders to transition from floor trading to electronic trading. In fact, I have transitioned a bit myself by expanding my services to traders or people that need life direction, guidance or advice. During the first interview, I get to know the individual and then we collectively work out a viable program to transition from one's station in life to the next. Those who know me know that all I wanted to do in my life was be a football coach. Actually, I coached football at Evanston H.S. for under 6 months. The football coaching experience was outstanding because of my mentor Robert Trevarthen. Becoming a football coach just wasn't in the cards for me. Ones' life takes some interesting twists and turns as fate plays a hand in our existence. If one is interested, I am willing to share my path from a teacher and a coach to owner of a futures trading firm in Chicago.. There are many unexpected experiences in one's life that shape one's decision making and take him off course. Unexpected doors open and close all the time. A secret involves being aware and ready to change. Also, to simply change is one thing, but to change and desire to be successful, takes time.

Your personal life affdects your trading!

Many traders have a hard time believing that their personal lives affect their trading performance. A trader must realize the magnitude of the brain and get to know how the subconscious works. Lots of information is stored in the brain and lots of things are going on in the brain without one realizing it. If a trader is troubled: for example, a family member is sick, a spouse's argument has taken place, one or more of the traders children is having a personal problem, or a tough month in trading may prevent bills from being paid etc. It may be difficult or impossible to have a successful day because of the brain ( the subconscious) being preoccupied with a problem. Thus, the trader may have a difficult time focusing or concentrating on trading. Whether or not the trader is dealing with a problem consciously, he or she must be aware that he or she maybe dealing with a problem subconsciously. For the fore mentioned reasons, a trader must always be in tune with what he is thinking. How many traders think about about what they are thinking about? How many people think about what they are thinking about? Well, to be successful one must be in tune with ones self. Thus, to know what one is feeling and thinking is vital to one's performance. How well do you think Tiger Woods could play with his recent problems? My advice is for the trader is not to trade until the problem is solved or until the trader has the ability to transcend the problem temporarily (this takes practice, this takes work, this takes experience and this takes time to cultivate the ability to know that trading on a particular day may be prohibitive and could be disastrous).

Success in Trading or in any endeavor!

1. Would you rather read about someone else's success? 2. See others become successful? 3. Or, learn how to become successful yourself? If you choose number 3, then you must be a ware of the following. The tools needed to be successful are: a passion for the endeavor; a will to accomplish what you set out to accomplish; self control; perseverance; and, a person who helps you to believe in yourself. Mkh