Post by traderAllen on Jun 17, 2015 20:45:07 GMT -5
Let's take a moment to talk about one of those subjects that is usually not mentioned when talking about trading. The first question I get from aspiring traders and most others probably get the same question. "What is the setup?" Or"when do I buy"I can tell you from experience that setup is the least important aspect of trading. Now on with our topic of today.
Mental focus... When you set at your trade desk your mind should be clear of all other thoughts. To scalp the markets you must be focused, alert, and if you're like me at least some caffeine. Your trade desk needs to be clean and free of clutter. The human mind can only interpret so many bits of information. You do not want to waste valuable brain function trying to comprehend all the crap laying around your desk or trading area. This might sound funny but it's a fact. The same goes for bills. your trading computer should be just for trading. If you're sitting at your computer thinking I need to pay some bills online you're not focused.
The room needs to be quiet, one of the largest threads on another forum is a discussion about what music you listen to while your trading. This is absurd! You need to be focused and sharp on what's going on you can win or lose a lot of money. The last thing you need is a song in the background wasting brain function while someone's telling you to "bang your head".
You need to be focused like a fighter pilot.
You need to be able to glance at your chart..... Conditions favorable.... Check
the news coming out to interrupt your trade..... Yes or no ...... check
near-term support and resistance......... yes or no....... check
50 level and play..... Yes or no...... check
Set and ready to fire
now the big three. Double check these
1 room for the trade to complete....check
2 support for stop.....check
3 enough order flow....... check
One of our setups is about the trigger.
Quick scan of all the above....... check
trade triggers........ smacked the mouse you're in.
Recheck all the above.
Trade moving in your favor adjust stop as needed. Check
profit target made....... check
relax sit back take a three minute breather.... rest your mind.... Focus
move to next setup
Stoploss hit...... three minutes.... Take a breather.... Lay on the floor and cry like a baby if you must.... But in three minutes be relaxed, calm and move on to the next set up.
When you first start out, this can seem monumental but after you've done it over and over it becomes routine. It even becomes routine to the point that you won't even think about the majority of it, you just do it. This is also why your trade methodology needs to be simple.
Mental focus... When you set at your trade desk your mind should be clear of all other thoughts. To scalp the markets you must be focused, alert, and if you're like me at least some caffeine. Your trade desk needs to be clean and free of clutter. The human mind can only interpret so many bits of information. You do not want to waste valuable brain function trying to comprehend all the crap laying around your desk or trading area. This might sound funny but it's a fact. The same goes for bills. your trading computer should be just for trading. If you're sitting at your computer thinking I need to pay some bills online you're not focused.
The room needs to be quiet, one of the largest threads on another forum is a discussion about what music you listen to while your trading. This is absurd! You need to be focused and sharp on what's going on you can win or lose a lot of money. The last thing you need is a song in the background wasting brain function while someone's telling you to "bang your head".
You need to be focused like a fighter pilot.
You need to be able to glance at your chart..... Conditions favorable.... Check
the news coming out to interrupt your trade..... Yes or no ...... check
near-term support and resistance......... yes or no....... check
50 level and play..... Yes or no...... check
Set and ready to fire
now the big three. Double check these
1 room for the trade to complete....check
2 support for stop.....check
3 enough order flow....... check
One of our setups is about the trigger.
Quick scan of all the above....... check
trade triggers........ smacked the mouse you're in.
Recheck all the above.
Trade moving in your favor adjust stop as needed. Check
profit target made....... check
relax sit back take a three minute breather.... rest your mind.... Focus
move to next setup
Stoploss hit...... three minutes.... Take a breather.... Lay on the floor and cry like a baby if you must.... But in three minutes be relaxed, calm and move on to the next set up.
When you first start out, this can seem monumental but after you've done it over and over it becomes routine. It even becomes routine to the point that you won't even think about the majority of it, you just do it. This is also why your trade methodology needs to be simple.
