“To be able to concentrate for a considerable time is essential to difficult achievement.”
–Philosopher Bertrand Russell
As traders, we could contend that “difficult achievements” are our constant companions. We focus on fast-moving financial markets that change directions on any whim, and alternately smack us with wins and losses.
In your trading day, are you able to remove distractions and mental clutter so that you can concentrate with clarity on the market’s—and your stocks’– moves?”
- Focused Thinking Harnesses Energy Toward a Desired Goal. Focus can bring energy and power to almost anything. If you want to solve a difficult mathematics problem, focus helps you break through to a solution. In trading, focus is an essential ability to cultivate. If you day trade, especially, you need to be able to focus on the chart patterns, how they are forming, and your risk: reward price levels. If you can’t focus, then set automatic entries and exits with your broker, so you enter and exit your trades at appropriate prices.
- Focused Thinking Will Take You to the Next Level. No one achieves greatness by becoming a generalist. You cannot sharpen your trading skills by diluting your attention to their development. If you want to learn how to swing trade with a process and a resulting plan that will bring you more gains than losses, you need to plan your setup criteria, establish your risk: reward formula, target high-potential stocks, and then trade according to your plan. Author Harry A. Overstreet observed, “The immature mind hops from one thing to another; the mature mind seeks to follow through.”
- Identify Your Priorities. To determine your priorities, begin by focusing on your strengths. In the world of trading, become an expert on one-three setups, and then trade them over and over, as long as they agree with market direction. Focus on the parts of your trading that brings the highest return and reward. Use the 80/20 rule: Give 80% of your effort to the 20% most important activities and give your attention to the areas in your trading that bear the most fruit.
The summer months can be the best time of the year to zero-in on the goals and objectives you want to attain for the remainder of the year. It is a process that deserves your attention and commitment. Set aside a slot of time to focus on your trading goals and the steps you will take to achieve them. Stay with your plan until you flesh it out completely and have it in a step-by-step format that you can refer to daily or weekly. Focus on your trading objectives now—it will pay you nicely in the remainder of 2018.
Until next time, keep green on your screen,