Are You Calmed and Relaxed When You Trade?

There have been times when I made mistakes under pressure, but I don’t recall ever cracking under pressure. By that I mean I didn't panic, but I have come close. Being short soybeans when Chernobyl blew up was probably the closest. I've made huge errors in conduct - once I sat and lost $45,000 in a matter of minutes because I tried trading while teaching a student at the same time. Lesson learned: Never trade and teach at the same time. Stay focused on one or the other. I once woke up to a margin call of $21,000+, but it turned out in my favor. I had erroneously left a 5-lot in the market overnight - thinking I was flat - the result of sloppy housekeeping.

Nevertheless, I have learned how to make trades in a relaxed, but focused way. I don't put unnecessary pressure on myself. I don’t let myself get stressed out - it’s simply too costly to do that.

I don't believe that I have to be successful on any one trade; I keep my focus on the big picture. I don't believe I need to be right. I don't try to impose my will on the market. And I definitely don't try to predict the future of price movement. The market is the market - it does what it wants to do.

What I do is to closely observe market conditions and movement, and make up a detailed plan of attack. I trade what I see, allowing the market to take me where it wants to go. I make a serious effort to stay calm and relaxed, and ready to act on whatever happens next.

Once I have a trading plan, I follow it. I do not doubt or second-guess my plan. I meditate on my plan and picture myself carrying it out successfully, before I ever enter a trade. I really believe in mental imaging as being an important activity.

I enter and exit trades without worrying about the consequences. Worrying has never helped me to trade well. Worrying is wasted energy. By staying focused, I am able to see trading opportunities more easily, and that allows me to take advantage of the opportunities when they arise.

Trading is a lot like playing sports. Players must stay objective, calm, and not crack under the strain of wanting to be "the