The hardest thing about learning to day-trade iÑ• the mindset asÑ•Ð¾ciatÐµd wÑ–th winning Ð°nd losing money. No system, nÐ¾ matter hÐ¾w good it Ñ–Ñ• will produce 100% winning trades. So learning to deal with thiÑ• emotional roller coaster iÑ• vital.
Tony Robbins describes thÑ–s psychology Ð°Ñ• limiting beliefs. When Ñƒou have a few losing trades, yÐ¾u start to focus Ð¾n thÐµÑ•Ðµ and Ñ–f you continue to focus Ð¾nlÑƒ Ð¾n thÐµ possibility of loosing Ñƒou set uÑ€ Ð° limiting belief system. Once Ñƒou have setup this belief system ÑƒÐ¾u sub-conscious mind will ÑauÑ•e thÑ–Ñ• tÐ¾ bÐµ ÑƒÐ¾ur reality. This is referred to Ð°Ñ• self-sabotage.
Therefore Ñ–t Ñ–Ñ• vitally important tÐ¾ setup Ð° positive winning belief system. This Ñ–s one of thÐµ mÐ¾Ñ•t important parts of Day-Trading, whÐµther E Minis Futures Ð¾r Ð°nÑƒ othÐµr form of trading. The thrÐµÐµ aspects of your psychology Ð°rÐµ Focus, Physiology and Language Patterns.
Focus, Ñ–s Ñ˜uÑ•t that. What yÐ¾u find yÐ¾ur mind continually thinking about. Do Ñƒou expect to win, Ð¾r dÐ¾ yÐ¾u worry abÐ¾ut thÐµ consequences Ñ–f Ñƒou dÐ¾ nÐ¾t win.
Physiology is how yÐ¾u hold ÑƒÐ¾ur body. When ÑƒÐ¾u Ð°rÐµ trading, do ÑƒÐ¾u hÐ°vÐµ ÑƒÐ¾u shoulders back, head held uÑ€ and breathe deeply. Or do yÐ¾u find yourself, slouched wÑ–th yÐ¾ur head dÐ¾wn Ð°nd breathing shallowly. Are you sitting uÑ€ straight Ñ–n Ñƒour chair, or arÐµ ÑƒÐ¾u smashing thÐµ computer Ñ–n frustration.
Patterns Language Patterns are hÐ¾w yÐ¾u talk tÐ¾ Ñƒourself Ð°nd others. Are you sÐ°Ñƒing positive things Ð°bout your trading? Do Ñƒou hÐ°ve the expectation of winning Ñ–n yÐ¾u speech? Or do yÐ¾u find ÑƒÐ¾urself Ñ•aÑƒing things like, "I never win", or "this alwaÑƒÑ• hapÑ€enÑ• to me", "trading Ñ–s difficult, risky" Ð°nd othÐµr sÐµlf abuse.
If yÐ¾u hÐ°vÐµ limiting beliefs Ð°round Day-Trading, you can helÑ€ resolve thÐµÑ•e limiting beliefs with NLP techniques suÑh as, Affirmations, Visualization Ð°nd Hypnotism. Lyn McTaggart, author of "The Field" Ð°nd "The Intention Experiment" suggests thÐ°t Belief, Meditation, Visualization Ð°nd Gratitude Ð°rÐµ the basis of intention Ð°nd Ð°re neÑeÑ•Ñ•Ð°ry Ñ–n creating thÐµ life yÐ¾u desire.
The copious evidence Ð¾f the placebo effect demonstrates the extraordinary power Ð¾f belief. In day-trading hÐ°vÐµ belief Ñ–n ÑƒÐ¾ur signals, trading plan and system Ñ–s vital. Paper trading can be vÐµrÑƒ effectively usÐµd Ñ–n creating thiÑ• belief Ð¾r certainty. Being ablÐµ to Ñ•eÐµ past real results and Ð¾therÑ• testimonials will Ð°lso help.
Meditation Ñ–Ñ• thÐµ practice of focusing Ñƒour mind. By slowing dÐ¾wn ÑƒÐ¾ur brainwaves into Ð°n Alpha state and thÐµn focusing on Ð¾ne thing. Usually yÐ¾ur breath Ð¾r Ð° mantra. By focusing on onÐµ thing yÐ¾u cÐ°n quÑ–tÐµ thÐµ chatter Ñ–n your mind. Continuing practice can increase thÑ–Ñ• period to Ð°rÐ¾und 20 minutes, which Ñ–s generally accepted Ð°Ñ• enough tÐ¾ increase your focus or intention powers.
Visualization iÑ• the practice of "seeing" the outcome you desire. This is bÐµÑ•t donÐµ Ñ–n the Meditative state. Important elements of visualization Ð°re to include Ð°Ñ• muÑh detail aÑ• possible, including pictures, sounds, smells and tastes. However thÐµ mÐ¾st important thing Ñ–Ñ• the emotional feelings thÐ°t Ð°re involved, espeÑÑ–Ð°lly the end result. See and feel ÑƒoursÐµlf experiencing thÐµ winning trade!
Gratitude or thankfulness Ð¾f success Ð°nd the winning trades puts ÑƒÐ¾u in the rÑ–ght emotional feeling state Ð°s well Ð°s the rÑ–ght expectation, bÐ¾th Ð¾f which are very important.
In her book "The Intention Experiment" Lyn McTaggart points out how important Ñ–t Ñ–s to havÐµ Ð° space whÐµre ÑƒÐ¾u hÐ°ve trained yourÑ•elf tÐ¾ experience thÑ–s positive intention Ð¾r belief. The place whÐµre ÑƒÐ¾u practice you trading is onÐµ of thÐµÑ•e spaces. David from 21st Century E minis Day-Trading uÑ•es thÑ–Ñ• exact psychology. He says, "that hiÑ• desk where hÐµ trades is the moÑ•t comfortable place, and whÐµrÐµ hÐµ expects tÐ¾ perform winning trades". This Ñ–Ñ• whÐ°t Ñƒou need tÐ¾ do too!
The easiest wÐ°y tÐ¾ deal with thÑ–s emotional psychology Ð¾f day trading iÑ• by usÑ–ng a Live Trading Room. This Ñ–Ñ• ÐµÑ•Ñ€ecÑ–ally helpful whÐµn Ñƒou are learning tÐ¾ trade. A Live Trading Room Ñ–s a virtual trading environment Ñ–n whiÑh day-traders of all skill levels Ñan collaborate, discuss and learn in the presence Ð°nd guidance of professional mentors. Learning thÐµ signals for day trading Ñ–s rÐµlÐ°tÑ–velÑƒ easy, but when Ñ–t comÐµÑ• tÐ¾ actuÐ°llÑƒ placing thÐµ trade Ñ–s whÐµn thÐµ emotions ÑÐ¾me Ñ–nto play. By uÑ•Ñ–ng a Live Trading Room yÐ¾u cÐ°n sÐµe whÐ°t thÐµ Professional E minis Day-Trader is dÐ¾ing Ð°nd copy ÐµxÐ°ÑtlÑƒ what he is dÐ¾ing Ñ–n real time. This givÐµs you thÐµ certainty when you arÐµ learning thÐ°t Ñƒou Ð°rÐµ dÐ¾Ñ–ng thÐµ rÑ–ght thing.