More ideas from Ari Kiev’s “Trading in the Zone”:
- Defining the zone. The zone is an ideal psychological state where you are doing everything correctly. Centered state of mind, activating positive memories by remembering the sights, sounds and smells of past positive experiences. Allows you to trade in a disciplined way and yet be more open to opportunities. You do more work with less effort. “You start to see things.”
- How to enter the zone. Players who are willing to get in the zone are willing to do the uncomfortable thing. “When I find an easy trade, it is usually wrong.” It requires conviction. Conviction comes from a willingness to trade your ideas and to develop confidence in your ability to assess what moves to make. Confidence to stick with your convictions. “When I think I am right, I will stay there. I don’t care how the stock trades.”
- How to be in the zone. Totally focused. Time stands still. Less resistance. Follow your strategy, trust your plan. “I did the work. If I thought I was right, I didn’t care how they traded. I stayed with them.” Trading with a lack of concern for results. Greater tolerance for pain. Don’t let this tolerance push you out of control. Your risk appetite should be clearly defined. “The zone is not comfortable. It is being a little bit on edge. Trading is a game of uncertainty.”
- How to stay in the zone. “Take a step back and think about what is going on. When I am worrying about my profit and loss, it takes me out of the zone.” Make small successes and build on them.