Commodity Broker

The Inner Dimension of Trading

Certainly, much has been written about the mind being the key to success in trading futures markets. However, I find it remarkable that so little has been presented in terms of specific techniques traders can utilize to improve clarity of mind, focus, discipline, confidence, positivity and optimism, energy levels, etc. These are the qualities necessary to actualize the full potential of our trading abilities. Probably most would agree that the degree to which these qualities are developed will have a major impact on the trader's performance in the markets.

As a day trader, I feel that the need for optimum mental and physical skills is greatly accentuated. The intraday venue demands faster reaction time, sharper acuity of the decision making process, precise execution of trading rules in a narrow window of opportunity. The ability to quickly recover from a loss, take the next signal, pull the trigger, take all signals, deal with rapid fluctuations in the markets and equity, maintain the discipline to exit a losing trade without hesitation, never "freeze up," etc.

In working with traders during my trading seminars over the years, I have found that it is almost a universal experience that we all have to deal with these same issues. It does not appear there is any easy way out -- the skills don't come just by recognizing the need for having the skills. I believe it is necessary to work on the skills of personal development directly as opposed to merely focusing on developing trading strategies.

I have practiced Transcendental Meditation for the past twenty years. This is a very simple mental technique practiced twice daily for twenty minutes. During the practice, the mind settles down to a state of great clarity and alertness, while the body gains a very deep level of rest. Following the practice, the mind is more clear, with the body full of energy and less restricted by stress. I feel this is the ideal state of mind and body from which one would want to enter into the markets.

Personally, I cannot imagine exposing myself to some of the crazy things that can happen intraday in the S&P, Bonds and Swiss Franc, without this preparation. I would highly recommend the practice to anyone looking for an edge over the vast majority of traders who respond in the typical panicky, stressful manner -- which some feel is actually the main driving force behind the chaotic nature of market movements.

I have also participated in the martial arts of Kung Fu and Tai Chi for the past 25 years. I find them very useful for developing the discipline, persistence, positive energy and resilience which are so valuable for the daytrading environment. The "warrior spirit," the unshakable resolve to stick with your system or trading plan, can make all the difference in the world when volatility picks up intraday.

Of course, there is a whole area of influence from what we take into the mind and body which might drastically affect trading performance as well. It is recognized that the negative effects of drugs, alcohol, wrong foods and environmental pollution, all severely impair our mental and physical capacity to deal with stress and function effectively. Someone who really wants to go all the way with their trading, should probably consider diet, exercise, routine, etc.

Perhaps the environmental influence is one of the least obvious and least recognized areas which we can enhance for better trading performance. Most daytraders and many short-term or position traders spend much time in front of computers. There has been an abundance of evidence on the negative effects of electromagnetic radiation from computers, monitors, backup power supplies, Fax machines, etc . All these electronic devices usually surround active traders. Have you ever noticed how sometimes you feel dull and drowsy, or hyped up, impatient or irritable, terribly bored and depressed with a stiff neck and creaky joints, headache and eye strain, or any other emotional or physical states which come up after some time sitting in front of the screen? I've noticed a variety of these traits myself and among many traders, who might attrib "bad moods" or negative attitudes to some recent trading losses. It might be worthwhile to consider the alternatives that these negative inner experiences may be a significant factor contributing to the losing trades.

Recently, I learned of a couple of products which are reputed to alter the field effect of electromagnetic radiation coming from computers and electronic devices, to create a more "coherent" energy field. I had setup a new much more powerful computer with a much bigger screen, feeling "wiped out" and "zapped" by all this hardware. I read about some convincing scientific research on these devices done by the American Institute of Aeronautics and Astronautics Research, the Moscow Brain Research Institute, and other research centers.