How Maintain Consistency and Improve Trading Results

[TheNegotiator 13]

Some traders, possibly the ones who need to address what I’m saying the most, will flat ignore this. People often seem to be much more interested in exciting new systems and charting techniques than in addressing the critical aspect of themselves and their ability to apply said techniques. Any system in the wrong hands will always fail. It’s my argument that if you are a discretionary trader, it’s the trader that makes or loses money. Not the market. Not the system. THE TRADER.

 

Realistically of course, market behaviour and chosen strategy have bearing on performance but unless you take every ‘signal’ or have programmed the strategy, it is the trader who selects what and when to trade. I sort of view it like sports. Take your favourite football team. You might watch a game and see some really exciting things happen. But to get to the position where a player or team can do that takes a great deal of unexciting training. I can virtually guarantee that if you put someone into the team who hadn’t done that level of training, the results wouldn’t be good at all and probably would be quite embarrassing. Like sports, trading might seem glamorous to some yet it requires a great deal of effort to get to a desirable end result.

 

If you’re a new trader still searching for a strategy that will work, don’t think this doesn’t apply to you. It especially applies to you and will help you avoid a wild goose chase in pursuit of that perfect system. By building a foundation of yourself, you will ultimately enjoy consistent (although not guaranteed good ) results and be in a position to improve on them day by day.

 

These are the basics for performance which imho you should address:-

 

Motivation

If you aren’t thoroughly motivated, it’s almost not worth the bother. It’ll waste your time and almost certainly your money. Making sure you put the work in come rain or shine is a must irrespective of whether or not you have a boss breathing down your neck. Half-arsed effort in trading is not like slacking off in other jobs. It will cost you financially and emotionally.

 

Emotional Balance

Trading when you’re tired, upset, unsettled, angry or whatever else is just nuts. In my own experience, it’s a sure-fire way to line the pockets of guys who are focused and mentally fit to trade. It’s not always easy to hold back from trading when you’re in an emotional state. But it’s important you do. It’s also important you try to balance yourself and your life to limit the frequency and impact of emotional triggers. Regular physical exercise and meditation are things I find useful personally.

 

Preparation

Failure to prepare in trading is imho the route of all evil. It is where the chaos starts. It’s where emotional self-deprecation begins and it often puts you in the hole before you really ‘begin’ to trade. Yet it’s just not hard. If you’re too lazy to prepare you shouldn’t trade and quite frankly you don’t deserve to make money. Actually, if you do trade and make money when you haven’t prepared, it could be damaging in the long run. Lucky outcomes to poor trading practise can be a real set back to trader development. If you haven’t got the time to prepare for some reason, you must have the discipline to not trade. Plain and simple.

 

Focus and Attention

To execute any plan it is of critical importance to remain focused at all times when you are trading. The very worst trades often happen when you just sit down or glance back at your screen after doing something else, you see something you were interested in and take a trade without even thinking. There’s something to be said about trading without ‘thinking’, but in this case it’s not a positive thing to do. You’re not thinking, but also here you haven’t been watching the market as it develops. This is just one example of why focus is important. It’s also important to focus in the ‘right’ way. Becoming so focused that you are blinkered to the broader reality of a situation is for example, a dangerous thing. When you’re ‘on it’ so to speak, trading almost seems too easy at times.

 

Review

You must review your strategy and your trading. Whether you do back-testing or journaling or you simply do a mental replay of your trades for the day, doing so will allow you to assess your and your system’s efficacy and build upon it. Without doing any reviews, your development as a trader might be no better than trying to play darts drunk, blindfolded and with your weak hand! Seriously.

 

I’m not writing this as if it’s ‘gospel’ and truly believe that even the best of traders can always learn something from themselves, the markets and other traders willing to share. So I encourage anyone who has fundamental underlying principles for trading which they have found effective for them, to post them here.

[wrbtrader 10]

These types of message posts are posted multiple times at this forum and other forums "every month"...ever since since the internet discussion forums birth.

 

Sadly, it just doesn't sink in and most see it as psycho mumbo jumbo when others say the critical factor is the trader until its too late. Yet, on the flip side, the market needs a lot of small fries to fail so that a few can make it big...consistently.

 

That's the way it has been since the beginning and will always be.

[fast 10]

So I encourage anyone who has fundamental underlying principles for trading which they have found effective for them, to post them here.

 

 

I would like to add something that I think is very important, and that is to never underestimate the power that your feelings have over your trading. Specifically, I’m talking about the feeling you get while reviewing a developing chart that seems to show some promise. When you feel good about a trade … that feeling.

 

When you come across a potential trade that you feel especially good about, there is a very real danger that you may trade it regardless of whether or not it fits your trading rules.

 

It’s so easy to sit back without the trading platform up and intellectually appraise the disadvantages of trading by instinct, intuition, or gut feeling, but when we’re looking at the hard right edge of the screen and see the action unfolding before our very eyes, we are susceptible to being lured into trading based on our feelings.

 

The solution doesn’t lie in telling ourselves not to do it. That doesn’t work. The solution is having something click inside us (a mental awakening), and that comes with the realization that we simply haven’t a clue what’s going to happen next. That takes a while, so it won’t happen overnight. Meanwhile, all we can do is trade our carefully crafted rules that were designed to put the odds on our side and manage our money like our life depended on it.

 

So, how do we get this mental awakening? Two things: 1) you must learn something about yourself that even you didn’t know, and that is the actual frequency in which you trade based on feeling. Oh sure, you know you’ve done it, but what’ll surprise you is just how darn often you’ve done it. Once you learn that I’m right, you’ll be like, “I had no idea I did it that much!” That’s right, not only do our feelings guide us more often than we should allow, we have also somehow managed to adopt some selective memory issues. Go us!

 

The second thing is to pull out the calculator and figure out just how much more money we would have had if we simply followed our rules.

 

Once we start making the connection between what we’re doing and the consequences of doing it, most of us will eventually stop.

 

The secret is to keep a trading journal that not only includes the technical’s and financials but also the psychological aspects of the trade.

[SIUYA 11]

The secret is to keep a trading journal that not only includes the technical’s and financials but also the psychological aspects of the trade.

 

Good point - another thing most people don't do properly - and honestly

It hurts to prove to yourself you are more often an idiot than not - but once you accept it......others things can fall into place. eg; it is easier to stop losses, it is easier to be patient both in entry and exit, it is easier to get stopped out and then get back on again.....

[TheNegotiator 13]

These types of message posts are posted multiple times at this forum and other forums "every month"...ever since since the internet discussion forums birth.

 

Sadly, it just doesn't sink in and most see it as psycho mumbo jumbo when others say the critical factor is the trader until its too late. Yet, on the flip side, the market needs a lot of small fries to fail so that a few can make it big...consistently.

 

That's the way it has been since the beginning and will always be.

 

My point exactly. But it's important to still put the information out there. I guarantee though, had I named the thread "Ichimoku cloud trading masterclass" there'd have been way, way more views by now.

[TheNegotiator 13]

Fast,

 

I think sometimes psychology can be rather overcomplicated. Afterall, we're trying to keep emotions in check to improve results, rather than analyse ourselves and come up with the meaning of life. Just so other potential posters know, that really really is not the goal of this thread. There are simple things that every trader can think through then do well to improve their trading.

 

As far as (strong) emotions go, I personally want to minimise their occurance, minimise/control their impact and be able to differentiate between emotions and intuition. The last point is vital to me. Intuition is the culmination of knowledge and is very much a part of that mythical "zone" we traders strive for. Yet intuition can be confused with emotion in the heat of battle. Usually it's that when you have an emotionally tied view on a market and potential trade/exit, you think somehow it's intuition. This is something which always needs to be kept in check. Conversely, not trusting yourself when the intuition is real can be an opportunity missed.

 

Overall, striving for a higher degree of emotional balance can help with all these three points. How you achieve this however might not be so simple. Meditation and physical exercise are things I have found useful in maintaining my objectivity throughout the day. Actually though, mental focus is also tied in imho. If I trade unfocused and get myself into trouble, emotions being to brew at the very least. I also find sleep and blood sugar levels to be important. Whatever might help you, it's my opinion that addressing the issue properly is only going to be a positive thing...

[fast 10]

[...] be able to differentiate between emotions and intuition.

I didn't mean to come across as if I had conflated them, but yes, there most certainly is a distinction between the two.

 

However, intuition is not the culmination of knowledge. At least that's my conclusion after reviewing a few relevant articles in the Stanford Encyclopedia of Philosophy.

 

Even experienced traders often deviate from their plan when they start 'feeling' their way through trades. One may exit too early because things don't feel right, or one may enter when they feel good about a trade. Sometimes, it pays off, but if one is trading a solid plan, it's unlikely to pay off more often than not.

 

You talk about maintaining consistency and improving trading results, and though I agree with you in that we shouldn't be trying to undercover the meaning of life when trading, we should pay very close attention to not only what we're doing but why we're doing it. The journal provides an excellent biofeedback mechanism in that it serves as a reflection of our thoughts and feelings. Why are we deviating from our plans which we've spent so much time putting together, and what are the consequences of doing that? Keeping a journal paves the way for traders (new and experienced) to figure that out.

 

Another way to improve consistency is to objectify every aspect of the trading methodology. When we seek to eliminate the subjective elements in our plan, consistency is a byproduct of that effort. We can also improve our trading results by learning when it's appropriate to tweak or otherwise make substantial changes to our plan.

 

The good points you made are certainly nothing to scoff at, especially for day traders. Also, it's a good idea to avoid trading when tired or bored. We shouldn't trade just for fun, nor should we trade when overexcited. There are quite a few situations when it's obvious we should take a break.

[wrbtrader 10]

Unfortunately, the few discretionary traders that do "journal"...are primarily imputing entries/exits only. Same info they can get from their broker statements. Therefore, the journal becomes useless for feedback. Fewer will include charts...yet...the charts don't reflect what the price action looked like at the time of the trade nor do charts show how the price action, market, at home/office trade environment impacted his/her trade decisions.

 

Also, most are unable to journal beyond a few months for whatever reason.

 

So yeah, few know the importance of a journal, fewer will do it long enough and fewer will do it properly. In addition, in my opinion, traders should be able to select any trading day in the past and know how they felt before, during and after trading...know what was occurring in the home/office environment the day of trading, market events et cetera. All of that stuff you won't find in any broker statement.

Edited July 14, 2012 by wrbtrader

[fast 10]

Also, most are unable to journal beyond a few months for whatever reason.

Unwilling, not unable.

[TheNegotiator 13]

I didn't mean to come across as if I had conflated them, but yes, there most certainly is a distinction between the two.

 

However, intuition is not the culmination of knowledge. At least that's my conclusion after reviewing a few relevant articles in the Stanford Encyclopedia of Philosophy.

 

Even experienced traders often deviate from their plan when they start 'feeling' their way through trades. One may exit too early because things don't feel right, or one may enter when they feel good about a trade. Sometimes, it pays off, but if one is trading a solid plan, it's unlikely to pay off more often than not.

 

Stanford Encyclopedia of Philosophy or not, my interpretation of intuition is about the culmination of knowledge (and experience and understanding etc.). Whether these things culminate in a 'good' assessment of the current market conditions depends on the level of skill and focus of the individual. However, in all cases intuition is different from emotion. The point is that a feeling about the market doing x or y can stem from intuition or emotion. Btw I do hesitate to keep using the word 'emotion' because I'm really referring to an excess of any emotion which causes a change in perception rather than the less intense emotions as humans we experience all the time (I know some will argue all emotions matter, but again I'm trying to keep things relatively simple here). With that interpretation of intuition in mind, I would say that it is a positive thing to leverage in your trading. It's not necessarily that you have to jump and immediately place or exit a trade when you have intuition. That wouldn't be sensible. Unless you are the type of trader who upon signal x you always enter a trade without fail, you will take some trades and pass on others. But if you can work within the bounds of your well thought out plan to capitalise on your intuition, then with good experience and understanding you will be able to select some good trades.

 

You talk about maintaining consistency and improving trading results, and though I agree with you in that we shouldn't be trying to undercover the meaning of life when trading, we should pay very close attention to not only what we're doing but why we're doing it. The journal provides an excellent biofeedback mechanism in that it serves as a reflection of our thoughts and feelings. Why are we deviating from our plans which we've spent so much time putting together, and what are the consequences of doing that? Keeping a journal paves the way for traders (new and experienced) to figure that out.

 

Agreed. What I really meant is we should try to focus on the issue when we identify it and try to keep the solution as simple as possible. Journalling provides many with a really excellent way to go through how they're trading and to spot patterns which they may miss otherwise. I think the problems is in many cases that people don't know what to journal as wrb points out. Just filling in trades you take isn't useful. You need to sit down and look at possible aspects which may or may not affect your trading and then create a simple and easy to fill in/read format to fully encapsulate the data. If you do it electronically, you could even assign values to specific information in order to chart certain aspects of the data.

 

Another way to improve consistency is to objectify every aspect of the trading methodology. When we seek to eliminate the subjective elements in our plan, consistency is a byproduct of that effort. We can also improve our trading results by learning when it's appropriate to tweak or otherwise make substantial changes to our plan.

 

Definitely. An important aspect of this is when you really approach it in this way, you're able to 'deconstruct' your trading into its component parts. By doing this, you can see where you're going wrong more specifically and better work on the aspect which is holding you back.

 

The good points you made are certainly nothing to scoff at, especially for day traders. Also, it's a good idea to avoid trading when tired or bored. We shouldn't trade just for fun, nor should we trade when overexcited. There are quite a few situations when it's obvious we should take a break.

 

Such a simple point and yet so important. Mental focus in trading is critical. These days, when I'm not focussed and I see something in the market, I more often than not pass the trade up. Even if the trade would have worked, I'm okay with that because I know I wasn't in the right place to properly assess the opportunity. Taking trades when unfocussed for any reason often doesn't end well.

[Obsidian 10]

....I also find sleep and blood sugar levels to be important....

 

 

We should be prepared before the market opens: check charts, find profitable instruments, set your entry-exit-reverse levels, check economic calendar etc...there are lots to do...If you sleep in front of your screens while you are trading, all of your efforts are wasted. Every small detail may affect our trading...it is like having a computer worth $10000 but without a $10 keyboard, it is worthless...

[fast 10]

Stanford Encyclopedia of Philosophy or not, my interpretation of intuition is about the culmination of knowledge (and experience and understanding etc.). Whether these things culminate in a 'good' assessment of the current market conditions depends on the level of skill and focus of the individual. However, in all cases intuition is different from emotion. The point is that a feeling about the market doing x or y can stem from intuition or emotion.

 

I am pleased with your response, as you clearly have an appreciation for distinctions. I also want to thank you for the explanation, as it reinforces what I thought you meant earlier.

 

If you follow a good rule-based methodology and refuse to deviate from it (and let trades go by that are close but don't quite meet your criteria), and if you consistently do it for a long period of time (especially without making mistakes), then the various components that you ordinarily look at that go into your trading decisions will become ingrained in you. What you are supposed to do (in accordance with your plan) will become instinctive, as if (as if, I say) it is intuitive. You can eventually get to a point where your trading becomes second nature to you making the decision making process very simple and almost spontaneous. This is a good place for an experienced trader to be, as it can significantly serve to eliminate analysis time and the dreaded thing that hurts us most of all: mistakes.

 

However, a trader who is trading a plan that is second nature to him isn't necessarily a trader that is in what we sometimes call, “the zone.” Being in the zone has more to do with focus, yet a trader that is focused still isn't necessarily in the zone—hence, another distinction. I'd like to expound on that topic just a bit and maybe you'll see why I don't think the zone is quite as mystic as some might think, but I need to approach the subject with examples outside of trading to bring this all together.

 

People sometimes report of what they’ll characterize as a “slowing down effect” moments before a vehicle crash. They say things like, “Everything seemed to be moving in slow motion.” Time seems to almost stand still. They were in the zone. There's a technical name for this, but I cannot recall what that is.

 

It often occurs during an extreme event, but it is also brought on during times of extreme focus. Serious gamers can “get in the zone.” What happens is a sudden clarity of thought comes over them brought on while maintaining intense focus. Nearly everything else becomes tuned out. Consider someone that is playing a game of Tetris that gradually levels up. There comes a point during the higher levels that he simply can’t keep up, but by repeatedly playing and trying very hard, something may eventually happen whereby he can all of a sudden play higher levels with incredible ease.

 

There is actually a physiological explanation for this experience. It’s ironic that it’s often characterized as a slowing down effect because the effect is a result of something that is actually speeding up. Let me give one more example and provide further explanation before I tie this in with trading.

 

Race car drivers may at times get in the zone, and I bet you too have been in the zone as well. Have you ever been driving and for a few moments felt like you could get out and walk faster than the car beside you? Intellectually, you know you can't, but perceptively, you're so in-tune with your surrounding that things almost appear as though you could. Welcome to the zone!

 

This can occur after you’ve considerably slowed down after a long fast drive. I recall a time when I was speeding down the interstate driving along somewhere in the 80 MPH range. There was very light traffic, and about forty minutes later I came up on a ton of traffic moving at about 45 MPH. I had been processing a lot of information. Now, I'm amidst traffic driving much closer to cars than I would otherwise normally do. I felt like I could roll down my window and inch over and touch the vehicle next to me. The feeling normally fades after a bit, but that feeling that you get where everything is moving slow is a result of being in the zone.

 

In fact, it's caused by your brain speeding up (as if going into overdrive)--probably caused by an increase in adrenaline. If you wake up at near the market open and pull up a 200 tick chart of the NQ in a fast moving market, the bars could go by so fast that one could easily become overwhelmed--no focus. Now, if you've been watching a 25 tick chart for the last 30 minutes intensely trying to follow your different indicators and how they relate to each other, you might find yourself on the verge of entering the zone (a mental state of heightened awareness). At that time, switch to a 400 tick chart, and you just mind find that you are literally capable of multitasking between day trading and just about anything else that may come up. It's not the focus but the mental effect that sometimes occurs because of that focus. That's what I call being in the zone.

 

Traders never need to be in such a zone to be successful, but day traders highly focused on a low number tick chart (for example) might very well occasionally find themselves so in-tuned with the occurrences on their charting platform that they’ll enter this seemingly mystic zone.

[TheNegotiator 13]

If you follow a good rule-based methodology and refuse to deviate from it (and let trades go by that are close but don't quite meet your criteria), and if you consistently do it for a long period of time (especially without making mistakes), then the various components that you ordinarily look at that go into your trading decisions will become ingrained in you. What you are supposed to do (in accordance with your plan) will become instinctive, as if (as if, I say) it is intuitive. You can eventually get to a point where your trading becomes second nature to you making the decision making process very simple and almost spontaneous. This is a good place for an experienced trader to be, as it can significantly serve to eliminate analysis time and the dreaded thing that hurts us most of all: mistakes.

 

However, a trader who is trading a plan that is second nature to him isn't necessarily a trader that is in what we sometimes call, “the zone.” Being in the zone has more to do with focus, yet a trader that is focused still isn't necessarily in the zone—hence, another distinction. I'd like to expound on that topic just a bit and maybe you'll see why I don't think the zone is quite as mystic as some might think, but I need to approach the subject with examples outside of trading to bring this all together.

 

I agree about "the zone" being about focus to some degree. I think it's important to make another distinction here. Instinct ≠ intuition. Instinct is that biologically or environmentally engrained urge for a specific reaction to certain situations. Intuition is the seemless understanding of a culmination of events without any real need to think things through. This requires focus, knowledge, understanding and experience together, but these things are not intuition in their own right. So whilst instinct provides an urge to act, intuition in itself does not. Perhaps then "the zone" requires instinctual action to intuitive understanding. One last observation would be that it is imho that "the zone" is virtually devoid of emotion. Anyway, it's definitely an interesting side topic but like you said, a trader doesn't need to be in "the zone" to be successful

[johnw 10]

................................................... One last observation would be that it is imho that "the zone" is virtually devoid of emotion. Anyway, it's definitely an interesting side topic but like you said, a trader doesn't need to be in "the zone" to be successful

 

gm Neg,

 

I would suggest that 'the zone' is a heightened state of awareness where the very essence of a Trader's emotions, feeling, intellect is focused on 'the now'

 

The Trader and the Price are seamless and rather than being devoid of emotion the Trader attains a state of clarity.

 

FWIW, I think only dead people can be devoid of emotion and they do not need to stop breathing to be dead.

[MightyMouse 12]

As an accomplished trader, the zone is an experience that you have when you are winning consistently throughout some period. It is an experience you want to relive as often as possible. Time seems to slow down because everything is working out in your favor. You will credit your analysis for your excellent market savvy. You are also in a zone when you are losing consistently throughout the day. This is not an experience that you want to relive over and over. You should also credit your excellent savvy in this situation.

 

It is impossible and unnecessary to trade without mistakes. It is important and essential that you properly trade the mistake; minimize the lose or maximize the win in spite of the mistake.

[johnw 10]

As an accomplished trader, the zone is an experience that you have when you are winning consistently throughout some period. It is an experience you want to relive as often as possible. Time seems to slow down because everything is working out in your favor. You will credit your analysis for your excellent market savvy. You are also in a zone when you are losing consistently throughout the day. This is not an experience that you want to relive over and over. You should also credit your excellent savvy in this situation.

 

It is impossible and unnecessary to trade without mistakes. It is important and essential that you properly trade the mistake; minimize the lose or maximize the win in spite of the mistake.

 

 

gm MM,

 

If your state of mind relies on winning consistently, don't you think that you are describing

'EUPHORIA'

It's opposite is 'DYSPHORIA'

 

'The ZONE' that is being described here is a place that is quite different

[MightyMouse 12]

gm MM,

 

If your state of mind relies on winning consistently, don't you think that you are describing

'EUPHORIA'

It's opposite is 'DYSPHORIA'

 

'The ZONE' that is being described here is a place that is quite different

 

I suppose it may be. I have never been in anything that is similar to what was being described. Can you be in the zone when you are losing or winning? Or, is the zone associated with winning only?

 

As far as driving is concerned, are you driving in the "zone" if you crash?

[johnw 10]

I suppose it may be. I have never been in anything that is similar to what was being described. Can you be in the zone when you are losing or winning? Or, is the zone associated with winning only?

 

As far as driving is concerned, are you driving in the "zone" if you crash?

 

MM

 

My belief of 'the zone' is it is a state of existence where action and reaction occur very nearly simultaneously in a state of clarity.

You cannot be winning or losing when you are 'in the zone' because nothing exists other than you and The Price ... if you are aware of winning or losing as you trade then you cannot be 'in the zone'

 

You can be 'in the zone' and still lose in sports as you can in F1 and still crash.

The Zone is a state of existence whereas 'a crash' is an outcome, just the same as a losing trade.

[MightyMouse 12]

MM

 

My belief of 'the zone' is it is a state of existence where action and reaction occur very nearly simultaneously in a state of clarity.

You cannot be winning or losing when you are 'in the zone' because nothing exists other than you and The Price ... if you are aware of winning or losing as you trade then you cannot be 'in the zone'

 

You can be 'in the zone' and still lose in sports as you can in F1 and still crash.

The Zone is a state of existence whereas 'a crash' is an outcome, just the same as a losing trade.

 

Like I thought. I know for sure that I have never been in the zone you are talking about. I am always aware of the price, time, and volume of the instrument that I am trading until I am not trading.

[SIUYA 11]

MM

 

My belief of 'the zone' is it is a state of existence where action and reaction occur very nearly simultaneously in a state of clarity.

You cannot be winning or losing when you are 'in the zone' because nothing exists other than you and The Price ... if you are aware of winning or losing as you trade then you cannot be 'in the zone'

 

You can be 'in the zone' and still lose in sports as you can in F1 and still crash.

The Zone is a state of existence whereas 'a crash' is an outcome, just the same as a losing trade.

 

I think that is a good example.....sports car drivers can as you say be in the zone - until it all goes horribly wrong, and something blindsides them.

I also recall an interview with ex Australian cricket captain Ricky 'Punter" Ponting - he was talking about one time where he was batting well and he said he was in the zone and that the balls coming at him were like pumpkins (i think he said that) and that it was easy to hit them.....it did not stop him from missing some balls and eventally getting out.

 

When it comes to trading my idea of the zone is that you are just seeing the flow of the market with ease, you are not fighting it, there are times whereby you can just 'feel' the turning points......not because you are looking to pick tops and bottoms....but it seems you are in tune with the markets.

 

My only issue with this is that usually this still involves either a lot of prior homework - Is this is a pre-requisite to be in the zone?

...and that being in the zone is almost like sticking with the plan - even when that plan is not really working.....as often the plan should have contingencies. (if that makes sense)

[johnw 10]

I think that is a good example.....sports car drivers can as you say be in the zone - until it all goes horribly wrong, and something blindsides them.

I also recall an interview with ex Australian cricket captain Ricky 'Punter" Ponting - he was talking about one time where he was batting well and he said he was in the zone and that the balls coming at him were like pumpkins (i think he said that) and that it was easy to hit them.....it did not stop him from missing some balls and eventally getting out.

 

When it comes to trading my idea of the zone is that you are just seeing the flow of the market with ease, you are not fighting it, there are times whereby you can just 'feel' the turning points......not because you are looking to pick tops and bottoms....but it seems you are in tune with the markets.

 

My only issue with this is that usually this still involves either a lot of prior homework - Is this is a pre-requisite to be in the zone?

...and that being in the zone is almost like sticking with the plan - even when that plan is not really working.....as often the plan should have contingencies. (if that makes sense)

 

Well today we have a houseful of Tradesmen and so I am in their zone today.

 

Speaking of cricketers, Shane Warne is very nicely inside Liz Hurley's zone ..

I doubt if you could lever him out with a crowbar.

 

I believe you can be 'in the zone' in almost anything you put your mind to doing including learning how to trade and preparing for each session.

Firstly we decide to do it and then we relax into it... there is no stress or willpower as these things cause separation of body mind and soul.

 

There is no substitute for planing and preparation .. none what so ever.

 

Ask any one armed Samurai and he will confirm the above statement

[SIUYA 11]

Speaking of cricketers, Shane Warne is very nicely inside Liz Hurley's zone ..

I doubt if you could lever him out with a crowbar.

 

I am sure it could be done.....he has always been susceptible to salacious text messages - his black swan! It is certainly something he had considerable consistency with.

[fast 10]

I’ve reviewed the lexical definitions of the term, “intuition”, and although I have not attempted to take my efforts further by trying to analyze the term for it’s necessary and sufficient conditions (that would require more effort than I’m willing to expend on this side issue), I am finding similarities (despite the presence of subtle differences) between how the term is commonly used in both the discipline of psychology and philosophy.

 

I do understand how you’re using the term, but I would have to characterize your use as a stipulative use. As such, it’s customary to use single quotes when using a term in an unusual or alternative manner. So, although intuition doesn’t appear to be what you have in mind, ‘intuition’ does, as characterized by you.

 

That’s okay. It was never my intention to correct (or even appear to correct) you—a forum about trading perhaps isn’t the correct venue for such a thing. I just wanted to make sure I understood just what it was you meant by what you said.

 

You do, however, seem to have a genuine desire to understand what intuition is. An easy search of the term reveals this insight: “Intuition is the ability to acquire knowledge without inference or the use of reason.” The source goes on to say that the word has a rough translation meaning “to look inside.” That is a far cry short of a sufficient explanation, but I only bring it up because it reminds me of introspection (which I think is relevant) whereby one looks to oneself rather than externally as a basis of belief.

 

Intuition is a belief (but certainly not merely a belief) that appears to not be a function of the characteristics you ascribe to intuition, and it’s mostly for that reason I have a strong suspicion that what you have in mind is something other than intuition.

 

Of course, what word you use to articulate your views is inconsequential to a fruitful discussion, so long as I understand what you mean by what you say.

[fast 10]

It is impossible and unnecessary to trade without mistakes. It is important and essential that you properly trade the mistake; minimize the lose or maximize the win in spite of the mistake.

 

What I was getting at is that we should strive to eliminate mistakes. That (and perhaps above all else) will most assuredly help one to maintain consistency and improve trading results.

 

Maybe that term is a bit too narrow, as what I had in mind even includes intentional deviations from one's plan. Consistency demands rigidity. It can be difficult for some people to watch set-ups that are so close pass us by to later see that they were successful. There will be times when close (but not quite there) set-ups will be what would have been for us a winning streak, and it can be especially difficult to also see our set ups we trade land us in a losing streak, but patience is a virtue in that we can reap the rewards that a solid plan can bring if we stick to what we have know to be a good plan.

[steve46 12]

In my opinion the best way to maintain consistency and improve trading is to see it modeled for you by a skilled practitioner on a day by day basis.

 

The second option is to "do it yourself"....and by that I mean...that as you encounter the inevitable ambiguities that present themselves during a trading day....you ask yourself "what can I learn from this"......you take notes, you analyze your responses to the data, and eventually you develop a situational data base that you refer to whenever you have to.

 

Consistency is about repetition....improvement on the other hand requires that a person obtain an better understanding of the subject at hand....If you are at the upper limit of your skill level, no matter now many "reps" you do, you still won't improve.....so my advice is to find a person who is better at it than you...and try to develop that resource....

 

Good luck

Edited July 17, 2012 by steve46