Developing YOUR Heart-Mind Trading Edge.

Good introduction. Waiting for more

Okay,

Here is a scenario to get us started:

You're learning to drive and you've been at it for a while, but from the passenger's seat. One day, your instructor drives off as usual, then you notice him (or her) pulling over to the side. You think they're going to check something on the car, then they say to you, "Now, you drive," and hands you the keys.

I'm sure at first some emotions will kick in. All along you were fine, but now, things have changed: heart starts beating, palms may get moist and your mind starts playing tricks..."Can you do this...now?" Lots of things can happen and it varies for each person. Be aware of what happens to You. The reason why "you" is written the way it is will be understood better if/when you read the excerpt.

QUESTION: When you come to your trading desk, and sit in that chair:

1. How do YOU start thinking?

2. What do You start to feel?

3. What are YOU thinking about the market that day?

4. How are You feeling when you look at a chart?

5. What are your personal thoughts about the market in general? Some people even have nicknames for the market: Beast, War zone etc. All these shape our perception.

And this is even before you analyze anything and way before you even click. I had a friend once who got up feeling like she should not trade...she was just not feeling well, but she pushed herself. End result? She had a lousy day in the markets. Not a 100% rule to follow, but we need to take note.

For those of you who would like to read THE EXCERPT of the book pictured above and on the Forex-TSD side banner...here is THE LINK. Think you'll enjoy it! It also includes a special bonus.

A Programmer's Testimony as a Trader!

This was emailed to me today by a programmer who builds indicators, EAs, robots ...whatever! Some of you may even have purchased some of his tools online. Anyway, this is what he had to say:

"...I bought your book...and I'm about 25% done reading it...your observations are right on! You walked me through paths that I wandered through many times, on my own Thank you for taking the time to put pen to paper. I don't know if you mention this later on, but my trading related problem is I'm a hopeless romantic when it comes to a position I'm in...meaning I fall in love and marry nearly every one of my trades. I'm also a perfectionist (perhaps from my engineering background)...and that other ME hates the chaos in the market and tries to organize it, control it, and make it obey me. Well, all this to say that I know what my strengths are and I try to stick to them. I'm good at building hammers, but I don't build houses. "

Powerful statements I'd say! If you've made a commitment to yourself to improve the bottom line in your trading, you just cannot leave YOU (and You) out. Technical Analysis tools are great, but you can't leave the most important component of your success sitting on the sidelines. Be sure to read the excerpt to get you started.

I have heard it said, "When you trade, don't be emotional." TRUE. Also heard, "You have to trade without emotions." NOT TRUE. Emotion-less trading is not possible because you are innately wired to experience them when facing risk etc. What has to be learned is how they can be and why they should be constructively incorporated into your style of trading.

More to come next week...

nbtrading:
Good introduction. Waiting for more

Hello nbtrading,

Thanks for stopping by. Glad you're waiting for more. I think that every trader will agree that this Heart-Mind issue is something we all have had to grapple with. The truth is, our emotional side is part of our make-up as people and is actually a defense mechanism that can actually help us if we understand what is really going on. Will elaborate on that later on as we get into this, but first I'd like to post a link to an E-book excerpt that will start the ball rolling:

Trading in the Finanacial Markets: Is It for You? What Every Trader Should Know BEFORE They Open Their Trading Account. Excerpt by: Publizr.com. Will come back in a bit and make some interesting points.

Just know, we all have that Heart-Mind connection for a reason.

Take care.

Hello Traders,

Hope you've had a good week...or maybe even a GREAT week in the markets.

Here's some food for thought for the weekend:

Have you ever been in a trade like this? It started okay, then it turned and started going against you, but there was still a chance it might reverse...per your system. Then it kept going against you, and YOU rationalized holding on a little longer (even though your system started giving clear exit warnings)...and, You started to feel tightness in the center of your being...your guts let's say. And as YOU let things get worse, that tightness got stronger? And, as YOU let things get even worse and YOU closed with a major loss, You were just out of it? We'll talk about it next week. The good news is, that process works on the winning side as well, but with the opposite kinds of reactions!

YOUR Heart-Mind Trading Edge is the bomb! Be sure to readthe excerpt. When you learn how to develop that edge, your trading will improve...provided you have a good system etc. By the way, the "market" understands it better than most traders. That's why it keeps getting paid by them. Time for you to step up your game.

Hello again traders,

Planning to continue this topic in a day or two. This would be a great place to post a comment or question.

are you soliciting for questions?

I thought it would be a good place for viewers to post a comment or ask a question before moving on with the discussion. Certainly not trying to "solicit" them... Sometimes people have comments or questions but may be a little hesitant to post, but do want to get them addressed. Just giving the opportunity for those who would like to... If not, I'll just continue on: no issue with me. Just here to do what I can to help. Thanks for sharing your thoughts.

Beginning To Understand The Heart-Mind

Moving along...

Over the years I think we have become accustomed to the importance of mental/academic pursuits and IQ (Intelligence Quotient). I'm sure most of us have heard the term "gray matter" being used in relation to someone's intelligence. More information about other parts of the brain has since come to the forefront and is coming more into focus.

The Limbic System, one of the areas of function in the brain is receiving the attention of those who are developing ideas about Emotional Intelligence and EQ (Emotional Quotient). The Limbic System, which is believed to be the center of emotional response is very well connected to the:

• Cerebral cortex (that gray matter)
• Endocrine system (where hormones are regulated)
• Autonomic nervous system (which controls involuntary nerve responses including the beating of the heart etc.).

Behavior is also influenced by this system. For more information on the Limbic System, click here. All of these areas work together to prepare you to overcome challenging circumstances.

So, what happens when a person is faced with a "dangerous/risky" situation? How does the body react "automatically"? Why does it react? How should we respond to that reaction? All of these questions will be addressed separately, then we'll step over into the world of Blink!

NOTE: At the appropriate point, we'll discuss why "system hopping" may not be such a great idea, as well as arbitrary trading i.e. "trading from the hip so-to-speak...trading on impulse." You know how a trader can just jump in because they see a candle moving right? Been there; done that.