Getting what you think about and what if your target is hit.

There are many thoughts that pop into your head throughout the trading day. Some are good and some are bad.  One thing to remember is that they are all helpful and provide insight to your internal barometer.

You get what you think about.  

If you are always thinking about not losing you are going to have a hard time getting profits, if you are always thinking about winning you are going to have a hard time keeping profits.  Each mindset is important and the situation dictates the appropriateness. Those that have not done the work are always going to be in the winning mindset.  Those that have lost are always going to have the not losing mindset.  Learn which mindset is most appropriate for you depending on the situation.

What if it hits your target, what if it hits your stop.

Trading is about taking putting risk on and taking it off.  The best traders always get in and out on the best ticks.  They do this by being in tune with the market, by preparation, and pre-planned trades. The best traders have little friction between entering and exiting a trade. When you have a lot of friction in execution your thoughts run wild.  Here are two prominent thoughts.  What if my target is hit and I am not in it?  What if my stop is hit and I didn’t take profits?  Each has its place.  For me personally, I start each day with the thoughts of what if my stop is hit and I didn’t take profits.  From there I can earn the right to shift to the other mindset. Yes it could be that the first trade of the day is the best trade but that is a risk I am willing to take.

Be careful with your thoughts they can act like a glasses that can skew your view of the market.  In a perfect world those thoughts would not come up.  It is not a perfect world, so preempt them whenever possible.  As always, ABT (always be testing).  The more you let the market guide you and not your thoughts, the better you are going to be.

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  • I sometimes slack on where my target is profit wise, I will reset a target depending on how the vehicle got there. Not as sharp as sticking to targets. I am an absolute stop loss sticker though, never violate that one. Nice essay.

One Response to Getting what you think about and what if your target is hit.

  1. GYSC says:

    I sometimes slack on where my target is profit wise, I will reset a target depending on how the vehicle got there. Not as sharp as sticking to targets. I am an absolute stop loss sticker though, never violate that one. Nice essay.

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