How to be a Centered Trader

Profitable traders have full control over their emotions. They don't allow emotions to interfere with their concentration. They focus on the markets, and through focused concentration, they can react to subtle changes in the markets with aplomb. This is what I call it as "centered trading."

In our exclusive interview with traders, we've heard master traders describe what it is like to cultivate a focused, centered mindset. Scott, a seasoned trader, describes how winning traders stay focused on the markets and on executing their trading plan even after a disappointing setback: "You can't let what just happened ruin what's about to happen." According to Scott, traders that do well are good at saying, "Okay, I made a mistake, what's next." Mark, a well-known hedge fund manager notes that a trader must recover quickly from a setback and not see it as defeat. It's similar to playing sports: "As soon as you lose the ball, you've got to head the other direction. You don't have time to think about it or cry about it. You've got to move. Your awareness of what's happening allows you to do that. You must look at what the markets are saying, position yourself, and don't think about the situation fully until the game is over."

Centered traders are able to focus on the essential elements of the trade before them. They don't worry about the consequences of their actions during the trade. They disregard past mistakes and avoid worrying about future events. They distance themselves from their emotional responses. They let their thoughts pass through their consciousness. It's a meditative state where they can allow their mind to look at the market action from a creative, alternative perspective. The more centered you are as a trader, the less easily you will be distracted. Becoming a centered trader takes practice, though. There are practical guidelines for how to develop this ability.

First, I suggest to gain awareness of the automatic nature of negative thoughts. Negative thinking tends to go through your mind without your awareness and impacts your trading. By gaining awareness of how you think negatively, you can turn away from negative, self-defeating thoughts.

Second, is abandoning adversarial metaphors of trading, such as fighting a battle. Rather than hostile imagery, you should see the trading arena as a serene environment.

Third, it is necessary to remove your ego from the process of trading. "You need to stop focusing on your image and surrender to the Tao or the path before you." - Dr. Kiev

Fourth, and most important, make an effort to practice some form of meditative exercise to learn to cultivate the proper centered state. These exercises can be formal meditation or alternative methods, such as praying, reading a story, humming, or using dance or physical exercise.

With practice, you can learn to move away from allowing automatic negative, emotional thoughts from taking over. You'll be able to focus on your ongoing trading experience and trade more profitably.

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Reynaldo Soriano - Your Peak Performance Trader Coach
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