For legendary Olympic swimmer, Michael Phelps, visualization was a critical part of his success. Days and weeks before key meets, he would play out the race in his mind. This approach can easily be substituted for trading. Phelps visualized: 1) How the race could go; 2) How he didn’t want it to go and 3) In a perfect world, how the race should go. For trading, I take it a step further. In addition to the 3 scenarios, I attempt to pre-plan the action and reaction to each trade outcome. For example, if trade is in a winning position; will I ride it to a greater profit point? At what price, do I lock in profits and will there be a second helping of profits? If trade is in a negative position, what price is my stop point; or is there a double down point, or disaster-based stop, or reverse position? Is this final trade of day or will I continue right away or take a break? And finally, plan for the emotional impact of trade. Know yourself and pre-manage your emotions (if you’re apt to have a volatile reaction to trade outcomes - like me!) So if I lock in a solid profit, will I be celebrating like it’s 1999. Or if trade goes against me, will I flip out; throw a tantrum and do self-harm with an impulsive revenge trade. By pre-visualizing emotional impact, it’s brought calm to my post-trade reactions. You should be able to handle any trading scenario regardless the outcome. If you’re stressed beforehand, be sure to document the VAR (value at risk), along with target profit. So win, lose or draw, one trade is really not a big deal if profit targets and stops are structured properly. Be sure to refocus your mindset. It’s not this one trade that matters; we all know that on any given trade anything can happen and one trade should not define you or make or break you (if it does, you need to change up). So it’s really not this trade that matters, but more the next 1000 trades. And if your next 1000 trades are on track and you have a winning system then that should be the focus (in addition to the task at hand). If you do all this planning beforehand (in addition to your technicals), expect your emotional control and results to improve. It has for me.
Difference is trading has a random component. in swimming he’s 100percent in control of his performance. He may not win but he can do 100percent of his potential with with no outside forces holding him back. you can visualize going to the beach but if it rains it doesn’t matter.
Another armchair trader bot. Day trading is more about staying in rhythm with the waves. It is not about how you feel. Just do the right thing over and over: Let the winners run, up to a point. TAKE losses get back in sync. Get good entries and take good exits. Trade what you see. Know what is noise. Know how to adjust for volatility and time of day. Know what is not tradable as a retail trader. Most people do not even know what the right thing is. Ironically, all the great performers are not overthinking it. They are so well trained, top athletes they just do the right thing they trained for and see how it goes. They are not in the middle of a competition, thinking, "gee how do I feel about the progress right now", or "Gee that last point was XYZ". The OP does not understand high level competition. Don't take advice from someone who is struggling and grasping for simplifications, while overthinking about the wrong things.
True; the point being if you're prepared for any scenario, and can accept any outcome, you can better manage your emotions, which inevitably leads to better results.
True, but just for the heck of it I looked up if champion poker players practice visualization. Apparently, they do: https://www.google.com/search?q=do+champion+poker+players+practice+visualization&sca_esv=1efd172859308584&rlz=1C1RLNS_enCA983CA983&sxsrf=AHTn8zoO4FYc289jLPZcj4AwQU0U_uPycA:1739547334428&ei=xmKvZ5LpGbuvptQP6ILFiAE&ved=0ahUKEwiS5MDnvsOLAxW7l4kEHWhBEREQ4dUDCBI&uact=5&oq=do+champion+poker+players+practice+visualization&gs_lp=Egxnd3Mtd2l6LXNlcnAiMGRvIGNoYW1waW9uIHBva2VyIHBsYXllcnMgcHJhY3RpY2UgdmlzdWFsaXphdGlvbjIIECEYoAEYwwRIgTdQmgtYlDFwAngAkAEAmAF5oAHKB6oBAzYuNLgBA8gBAPgBAZgCDKAC7gfCAg4QABiABBiwAxiGAxiKBcICCxAAGIAEGLADGKIEwgIIEAAYsAMY7wXCAgcQIxiwAhgnwgIIEAAYgAQYogTCAgUQABjvBcICChAhGKABGMMEGAqYAwCIBgGQBgmSBwM4LjSgB4g7&sclient=gws-wiz-serp (I'm not much of a poker player, so I can't say one way or the other.) And so, since poker also has a random component, maybe there is something to it. Mental preparation, and all that.
it's definitely improved my game: I run through scenarios at the macro level the night before any potentially market moving news due the next day. The key question/ judgement call is what has the market priced in - good news or bad news? Always a tough one to gauge.
It is not possible to win 100% of trades, but in addition to having a solid trading strategy, the most important thing is to be aware that losses will occur, and that is where the traders must prepare and train themselves. It’s a psychological issue, but you should also have a plan B in case you lose 50% of your capital—will you cry over your losses, rethink your strategy, or take revenge on the market? As mentioned above, there is too much randomness in the market, and no matter how much you practice your strategy, you’re ultimately dealing with the emotions of many other traders.
Also, riding winning positions. To make up for losses need those 3-5-1 payouts. Guilty of being squeezed out of retests for small gains; which would have ultimately been big time gains if didn’t leave early. If I ride winners blindly and not worry about profit turning into a loss, consistent profits achievable.