Back In The Zone

Trading can be especially enjoyable when you are trading at your peak. There are times when everything just seems to click as you move effortlessly with the ebb and flow of the market. There are various names for this optimal state of mind, such as "trading in the zone" or "flowing with the markets." But whatever you call it, traders in this ideal mental state almost completely lose themselves in what they are doing. They are focused only on the ongoing process of the moment. They are not self-conscious, concerned with how well they are doing or worried about doing poorly. Their complete attention is focused on trading. Unfortunately, we are not always in this optimal state of mind. We get thrown off our game. We experience setbacks, and when we face disappointments, we lose our mental edge. When we are out of sync with the markets, it's useful to get back in the zone. The best way to regain your mental edge is to look at your assumptions about trading. Many times, we put too much pressure on ourselves, expecting miracles when we are merely humans.

It is all right to be naïve. Many times we believe we must have perfect knowledge and know exactly what will happen next. But few people have such a wealth of experience with the markets that they can anticipate every possible market move or adverse event. Always remember that you are human. You cannot know everything, and that is all right.

And because you are human, it is vital to remember that you are not perfect. It's useful to approach trading with the mindset, "I can make occasional mistakes. It's understandable." It's impossible as a trader to be thoroughly competent, adequate, and achieving all the time. Certainly, you should develop an extremely detailed trading plan and try to account for all adverse events that may go against your plan, but there are limits to what you can do. Your trading idea may just not pan out, and there's little you can do about it besides taking proactive steps, such as managing risk and having clearly defined exit strategies to protect your long term financial interests. Holding yourself up to unrealistic standards is just going to make you feel frustrated, fearful, and unnecessarily uptight. By accepting your limitations, and trying to work around them, you'll feel more at ease, and ready to capitalize on a high probability setup when you come across it.

It's also vital to take losses in stride. You can lose money and allow yourself to not feel like a loser. It's hard to take losses, and when you encounter a string of losers, it's natural to feel shaken and uncertain. But the worst thing you can do is stay on the ground after you have taken a fall. It's useful to get back in the zone. You may decide to scale back and make a few small trades to try to regain your edge. Or you may decide to stand aside and merely study the markets in order to get a feel for how the markets are moving. Whatever you do, however, don't stand still. Keep moving, even if it is just thinking rather than acting. If you can keep your mind moving and trying to solve problems, you will regain your mental edge.

It's easy to get thrown off by setbacks and lose your mental edge, but there is a big difference between feeling permanently beaten and temporarily off your game. If you keep problem solving and try to take active steps to get back into the zone, you will get there, and feel like a winning trader once again.

source: Innerworth