Trading on Target: How to Cultivate a Winner's State of Mind

STRETCHING AS A TRADER

The following are examples of how to do so.

Trade Only a Portion of an Eight-hour Day

Many traders remain attached to the old eight-hour workday ethic. One of the advantages that traders enjoy is that they do not have to work a full eight hours to receive the benefit of a full day’s wage. I know a number of traders who make a very comfortable living from trading in one or two hours a day. In fact, I have suggested to several of the traders that I coach that they trade less hours. They have found that they earn more money and enjoy life and trading more because they are less stressed. Of course, this does not mean that you take away study time or development time, especially when you are a beginning trader.

Notice the patterns when you make and lose money. Try to recognize the time of day, time of week, time of year, and your personal energy during those times. This information should give you a clear picture of what times are best for you to earn the most profits.

Take Larger Risks

A few traders have said to me, “I wish that I could feel comfortable trading more contracts.” Let’s assume that their comfort level is at 10 contracts and they want to trade 100 contracts. To jump from 10 contracts to 100 is too big of a stretch. But, trading 15 contracts on what you “intuit” to be the better trades would be a workable psychological stretch to start toward a new level of risk. When that level of risk becomes comfortable, you might be ready to stretch risk to 20 ...