Steenbarger Psychology of Trading

...continued from yesterday...

Here’s a summary of his main points that are relevant to traders from the points made in the book The Psychology of Trading: Tools and Techniques for Minding the Markets

You have a repertoire of behaviors. You have one or more sets of winning trading behavior. You also have one or more sets of losing trading behavior.

Each set of behavior, whether winning or losing, is associated with a different mental-emotional state.

You can improve your trading by keeping a record of your mental-emotional state (as well as your self-talk and body posture) while you are trading. Notice from your records what mental-emotional state you were in when you were doing your winning trading behaviors. Then invoke the same mental-emotional state whenever you trade so that you perform your winning trading behaviors instead of your losing trading behaviors.

...cont'd tomorrow...

Copyright 2007 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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