why concentration is so important for a trader?

"there are many patterns in life that we sense,
but cannot fully place into words.

my favorite example is the young child
who creates grammatical sentences when she talks,
but cannot tell you the rules of grammar she is using.

similarly, i can sense clearly
when a person is talking in a very sincere or insincere manner,
but cannot necessarily tell you all the subtle cues--the changes in vocal inflection, the nuances of facial expression--that lead me to that conclusion.

as for the experienced trader, for the seasoned psychologist, it's a gut thing: the result of thousands of exposures to patterns that recur, but rarely the same way twice.

once the concentration of the psychologist or trader is broken,
the access to those subtle gut hunches
is lost.

in that situation, the experienced professional loses contact with years of experience and, indeed, becomes a rookie."

- dr.brett steenbarger
author of 'the psychology of trading'

Trading with Memory!

Traders are humans.

And all humans have three kinds of memory.

1) sensory memory

2) working memory

3) reference memory

Much of what we see or hear in the market is crap.

Our sensory memory rightly discards much of it hence saving our decision system from overheating or overloading.

Only whatever is noteworthy is passed on by the sensory memory to the working memory "for a closer look".

This includes things which can be potentially threatening or rewarding!

If your working memory "is not impressed" with this shortlisted information, it is dropped.

Otherwise, it is double-checked with the reference memory.

So,what is the use of this all theory?

Simple.

First, Keep your sensory memory free from all clutter.

Don't overload it with a flood of irrelevant market news being pumped by the business channels etc.

Otherwise there is every chance that this highly sensitive and important memory will malfunction.

Important information will either be missed or crap will be passed on to the inner echelons.

Als, too much of hyperactive information flood can create illusion for this sensory barrier resulting in over-reaction or under-reaction.

Second, Keep your Reference memory well stacked with rich knowledge and experience.

This will help it give the right decision and consultation whenever the working memory throws any qualified question!

And in between these two memories (sensory and reference memories) lies the thankless job of the working memory which has to segregate diamonds out of the shortlisted piece of glasses!

Keep it fresh and sincere!

Moral of the story :

Trading is fun but not funny!

i m possible

If u wanted to be wealthy in stock market but so far have misearbly failed in this aim

then I want to ask you a question.

Have u ever profited in atleast one trade? with method? with confidence?

Did u make profit atleast once? without fluke? with surety?

If your answer is "No" then your problem is 'method' or 'knowledge'.

But if your answer is "Yes"

then what if you had taken 10 times bigger position you had taken in that profitable trade?

so?

your first problem is the size of the trade and the factors which are stopping you from doing so!

and, what if you had been successful in repeating that profitable trick again and again?

meaning?

your second real problem is the inability to repeat what you know or can!

In a nut shell,

your problem is not the lack of knowledge

but lack of repetition and inability to take bigger position.

consistency and size of trade!

You are nearer to the professional success in trading than u think!

"Go get the prize!"

A great hunter's hunter son returned home in the evening

after a day out in the deep jungle......hunting

dejected and tired!

"Why are you empty handed, son?" proud hunter father asked his talented hunter son.

The son remained silent.

"Tell me, son? Did you go for hunting today?"

The son nodded in affirmation.

"Is your gun OK?"

"Yes,Dad!"

"Did u have the ammunition? Was the powder dry?"

"Yes, Dad!"

"Was the weather OK?"

"Yes!"

"Did u find the animals?"

"Yes, Dad! Many of them?"

"Then, son, what happened?"

"Dad, When I aimed at a moving deer and was about to pull the trigger,

I saw another dear closer to the first one and moving slower!

The second dear appeared more lucrative target

so I changed the aim to this second deer.

I was about to shoot when this deer changed its speed

just then I saw another deer which was not moving.

So I thought it prudent to target this stationary one.

I changed the aim and just then the deer starting running.

I chased my gun's barrel in his direction when I saw another deer who seemed an easier target.

I pointed my gun on this one but just in the nook of time he moved behind a bush!

All day, Dad, I kept aiming but never got the chance!"

"We will go together for hunting tomorrow, Son! Now come and have dinner!"

The next morning the father and the son got up early.

Father picked up his 1920 vintage double barrel rifle and wore his lucky hunter shoes.

"Why don't you take your best gun, Dad?"

"You hunt your best with mind, not with gun, Son"

They went deep into the jungle.

The son spotted a deer!

"Over there, Dad." he whispered to his Dad

The father aimed.

The deer sensed the danger and started running.

Deers around that deer also started moving.

The father kept his aim on the marked deer and ignored all in the foreground.

Locked the target

and pulled the trigger.

The deer turned in a flash.

The bullet missed the deer.

Father kept his eye on the running deer in the target eyepiece of the rifle.

And pulled the trigger for the second time.

"Go get the prize, son! It's over there near the rock!"