Archives of “inner dialogue” tag

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Traders Daily Lessons

  
  Education
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Have the courage to say no.
Have the courage to face the truth.
Have the courage to do the right thing because it is right.
– W. Clement Stone

An inner dialogue typically reinforces the way you think. So the goal is to consciously expose yourself to thoughts that ultimately will positively impact your trading. Through the use of repetition you can considerably strengthen a positive attitude and sound trading behavior. The beauty of it is the simplicity of the method. It’s entirely up to you which trading mantras you want to adhere to. Here are a few that I strongly believe in and that characterize my thinking as a trader:

  • Kill your greed
  • Isolate yourself from the opinions of others
  • Never chase stocks
  • Always strive for emotional detachment
  • Focus on proper execution
  • There is never a shortage of opportunities
  • Never make excuses
  • Stay in control
  • Don’t compare yourself to others
  • Always use stop losses
  • Standing aside is a position
  • Money comes in bunches
  • Never add to a losing position
  • Stay calm and focused
  • Don’t believe the hype
  • Cultivate independent thinking
  • Be ready for worst case scenarios
  • Nosce te ipsum – Know thyself

My Personal Trading Rules

  
  Education
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  • Turn off the news.

  • If you’re not feeling well for whatever reason, take the day off.

  • Feeling overly confident? Decrease your size.

  • Waffling on a trade? Pull the trigger! The hardest ones are usually winners.

  • Resist the urge to take off half when a trade is going your way.

  • Have a target in mind for every trade. Exit when price approaches that level.

  • Support, resistance and targets are ‘areas’, not specific prices. Give them some leeway.

  • Trade in the direction of the Cumulative TICK.

  • Unusually strong/weak Cumulative TICK? Increase your size.

  • Use mental stops. Adjust your stops based on the current volatility.

  • Establish a total maximum loss you’ll take in one day and stop trading if that’s hit.

  • Be conscious of your self-talk. Maintain a positive inner dialogue with yourself.

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