IMO the best state of mind is where you are completely emotionally detached from your positions, results, and opinions about the market, but completely focused on how the market is acting and what signals it is giving off. You can then execute - without hesitation or worry - whenever the market acts in a way that says "buy me" or "sell me". You don't care how the trade does, you just care that you trade it correctly. I once wrote down some "psychology rules" on an index card to take into the office: Rule # 1 Don't care Rule # 2 Focus Rule # 3 Enjoy and Rule # 4 Don't get high on your own supply IMO fear/worry/anxiety is the biggest killer, as it cripples decisiveness, which is essential for traders, and it makes you second guess yourself. As noticed by the Zen Buddhists, anxiety comes from emotional "attachment" to outcomes. If you don't care what happens, then fear can't overcome your judgement. Focus concentrates the mind, and eliminates sloppiness and mistakes. And enjoyment means that stress, frustration, anger & other destructive emotions likely to trigger the fight or flight response (which is devastating for traders) are eliminated.
IMO the Holy Grail is emotional detachment. Being focused on trading the market, not the money. I recently added a rule to my plan - The only time I look at my P/L is Friday after the close. It helps remove fear of loss and greed for profits. Best thing I've done so far in my short career.
Amen. Once you have the Holy Grail do not let your emotional reckoning into the equation .. just let your system gather the harvest daily.
Set out to find the answers on a personal belief structure, end up with the Holy Grail... Thank you Brothers and Sisters of ET... One question though, when you detach from emotional outcome in the ways suggested, what keeps you closing out the postion besides fear? Rational cause and effect relationships? Zen like repetition of behavior? How can one implement focus without being attached to the outcome. What is there to focus on besides outcome when it comes to trading?
I know what you mean ;-) Throw in a little AG (Achapulco Gold) as a beta blocker and what you got is a good ole fashioned trading eye of the tiger baby. Zen at its best. Go Gold to the moon Alice!!!!!!