Intraday Futures Trading
When a trader experiences difficulty making decisions that are clearly defined in the trading rules, it is often because there are competing neural circuits that are often trying too hard to protect the “self” from “being wrong,” and thus suffering a lose by exiting a trade too soon are missing an entry after hesitating, only to see the trade move quickly in ones favor.
What traders need to remind themselves, is that a proven system has already taken EVERYTHING into consideration and that EVERY system has losing trades. Often it is the zealous subconscious that will try to OVER-PROTECT the individual because it forgets that “losing trades” are just part of winning system. Instead the subconscious has been programmed to treat every trade as life or death and therefore OVER-THINKS and because it becomes emotional cannot see things objectively.
To correct this misunderstanding of the subconscious a trader needs to reprogram his/her subconscious to focus ENTIRELY ON FOLLOWING RULES – (instead of worrying about winning or losing)
Rather then fearing that the trade will lose, or that a current winning trade will reverse soon, THE FEAR MUST BE TO “NOT BREAK ANY RULES.”
Worded in the positive, SUCCESS is defined as FOLLOWING RULES EXACTLY. FAILURE is defined as NOT FOLLOWING RULES.
Train the subconscious to follow rules by illustrating how the system works and by simulating a string of trades that ultimately lead to a large, profitable P/L statement.
Providers like NinjaTrader, TradeStation and others have very good simulation abilities that will allow one to re-trade previous trading days exactly as they actually happened.
If there are certain valid set-ups you’re having problems with you can re-trade that set-up OVER and OVER and OVER again until you build up a reflex to enter as soon as it appears. This is reprogramming you subconscious and eliminating the competing neural circuit that was previously present and caused hesitation.
Similar repetition can also be used when working to improve profitable exits. Clear rules are the first key, but practicing them with simulation is key for calming and retraining your subconscious from the temptation of exiting too early. Practice. Practice. Practice.
It is our job not only as traders, but as humans to learn how to control our subconscious so we can remove limiting beliefs and reach our full potential.
I was watching one of my favorite dark comedies the other night, and there was some dialog I thought was very applicable to how a trader might want to talk to his/her subconscious after having some trouble following RULES.
So here it is in text – The conscious mind reprimanding the subconscious mind and reminding it to JUST follow rules.
Shut up, Listen and Learn.
You have no brain.
No judgment calls necessary.
What you think means nothing.
What you feel means nothing.
You are here for me.
It is your responsibility now to make sure I get what I want.
Am I clear?
Good!
I’m not trying to be cruel.
I’m just trying to help.
Because if you do this job right – you listen and learn, then you’re going to be able to do anything you want.
You can have anything you want. --
The end result, as the conscious promises, is that “All can be yours – Everything you want,” and if we as traders DO follow our rules there is a happy financial ending. However, the real trick is to use this strategy in every part of your life you want to improve. It does work.
Click Here to watch Kevin Spacey and Frank Whaley in a clip from Swimming with Sharks (1994). Note: “Sweet and Low” is following rules. “Equal” is breaking rules.
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