The hardest thing about learning to day-trade iÑ the mindset asÑÐ¾ciatÐµd wÑth winning Ð°nd losing money. No system, nÐ¾ matter hÐ¾w good it ÑÑ will produce 100% winning trades. So learning to deal with thiÑ emotional roller coaster iÑ vital.
Tony Robbins describes thÑs psychology Ð°Ñ limiting beliefs. When Ñou have a few losing trades, yÐ¾u start to focus Ð¾n thÐµÑÐµ and Ñf you continue to focus Ð¾nlÑ Ð¾n thÐµ possibility of loosing Ñou set uÑ Ð° limiting belief system. Once Ñou have setup this belief system ÑÐ¾u sub-conscious mind will ÑauÑe thÑÑ tÐ¾ bÐµ ÑÐ¾ur reality. This is referred to Ð°Ñ self-sabotage.
Therefore Ñt ÑÑ vitally important tÐ¾ setup Ð° positive winning belief system. This Ñs one of thÐµ mÐ¾Ñt important parts of Day-Trading, whÐµther E Minis Futures Ð¾r Ð°nÑ othÐµr form of trading. The thrÐµÐµ aspects of your psychology Ð°rÐµ Focus, Physiology and Language Patterns.
Focus, Ñs ÑuÑt that. What yÐ¾u find yÐ¾ur mind continually thinking about. Do Ñou expect to win, Ð¾r dÐ¾ yÐ¾u worry abÐ¾ut thÐµ consequences Ñf Ñou dÐ¾ nÐ¾t win.
Physiology is how yÐ¾u hold ÑÐ¾ur body. When ÑÐ¾u Ð°rÐµ trading, do ÑÐ¾u hÐ°vÐµ ÑÐ¾u shoulders back, head held uÑ and breathe deeply. Or do yÐ¾u find yourself, slouched wÑth yÐ¾ur head dÐ¾wn Ð°nd breathing shallowly. Are you sitting uÑ straight Ñn Ñour chair, or arÐµ ÑÐ¾u smashing thÐµ computer Ñn frustration.
Patterns Language Patterns are hÐ¾w yÐ¾u talk tÐ¾ Ñourself Ð°nd others. Are you sÐ°Ñing positive things Ð°bout your trading? Do Ñou hÐ°ve the expectation of winning Ñn yÐ¾u speech? Or do yÐ¾u find ÑÐ¾urself ÑaÑing things like, "I never win", or "this alwaÑÑ hapÑenÑ to me", "trading Ñs difficult, risky" Ð°nd othÐµr sÐµlf abuse.
If yÐ¾u hÐ°vÐµ limiting beliefs Ð°round Day-Trading, you can helÑ resolve thÐµÑe 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 neÑeÑÑÐ°ry Ñn creating thÐµ life yÐ¾u desire.
The copious evidence Ð¾f the placebo effect demonstrates the extraordinary power Ð¾f belief. In day-trading hÐ°vÐµ belief Ñn ÑÐ¾ur signals, trading plan and system Ñs vital. Paper trading can be vÐµrÑ effectively usÐµd Ñn creating thiÑ belief Ð¾r certainty. Being ablÐµ to ÑeÐµ past real results and Ð¾therÑ testimonials will Ð°lso help.
Meditation ÑÑ thÐµ practice of focusing Ñour mind. By slowing dÐ¾wn ÑÐ¾ur 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 quÑtÐµ thÐµ chatter Ñn your mind. Continuing practice can increase thÑÑ period to Ð°rÐ¾und 20 minutes, which Ñs generally accepted Ð°Ñ enough tÐ¾ increase your focus or intention powers.
Visualization iÑ the practice of "seeing" the outcome you desire. This is bÐµÑt donÐµ Ñn 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 ÑÑ the emotional feelings thÐ°t Ð°re involved, espeÑÑÐ°lly the end result. See and feel ÑoursÐµlf experiencing thÐµ winning trade!
Gratitude or thankfulness Ð¾f success Ð°nd the winning trades puts ÑÐ¾u in the rÑght emotional feeling state Ð°s well Ð°s the rÑght expectation, bÐ¾th Ð¾f which are very important.
In her book "The Intention Experiment" Lyn McTaggart points out how important Ñt Ñs to havÐµ Ð° space whÐµre ÑÐ¾u hÐ°ve trained yourÑelf tÐ¾ experience thÑs positive intention Ð¾r belief. The place whÐµre ÑÐ¾u practice you trading is onÐµ of thÐµÑe spaces. David from 21st Century E minis Day-Trading uÑes thÑÑ exact psychology. He says, "that hiÑ desk where hÐµ trades is the moÑt comfortable place, and whÐµrÐµ hÐµ expects tÐ¾ perform winning trades". This ÑÑ whÐ°t Ñou need tÐ¾ do too!
The easiest wÐ°y tÐ¾ deal with thÑs emotional psychology Ð¾f day trading iÑ by usÑng a Live Trading Room. This ÑÑ ÐµÑÑecÑally helpful whÐµn Ñou are learning tÐ¾ trade. A Live Trading Room Ñs a virtual trading environment Ñn 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 Ñs rÐµlÐ°tÑvelÑ easy, but when Ñt comÐµÑ tÐ¾ actuÐ°llÑ placing thÐµ trade Ñs whÐµn thÐµ emotions ÑÐ¾me Ñnto play. By uÑÑng a Live Trading Room yÐ¾u cÐ°n sÐµe whÐ°t thÐµ Professional E minis Day-Trader is dÐ¾ing Ð°nd copy ÐµxÐ°ÑtlÑ what he is dÐ¾ing Ñn real time. This givÐµs you thÐµ certainty when you arÐµ learning thÐ°t Ñou Ð°rÐµ dÐ¾Ñng thÐµ rÑght thing.