It was a mental slip. A brain fart. It stank. And I paid the price.
After Flowtastical tweeted prior to the market open that for today's trading -- he was visualizing passing on the bad setups and taking the good setups aggressively -- I realized I didn't have a good pre-market ritual. At least nothing that I have instituted on a regular and routine basis.
When I first heard of pre-game rituals and routines, I immediately thought sports. Here's a humorous perspective on how some elite athletes perform their rituals. Funny as some of these rituals may be, it works for them -- they're some of the best around.
So being such an obvious factor in sports, it wasn't very difficult to find a lot of great articles regarding how to setup your own pre-game type ritual. And these rituals can easily cross over to trading. Here's a link to a good article on how to design your own pre-performance type ritual.
In summary, the article explains that there are two types of rituals:
- Associative - "you enjoy focusing specifically on the upcoming event and organizing details, thinking about it, imagining yourself performing well and can see yourself completing the event successfully."
- Disassociative -"you'd rather not focus on what is about to happen, and instead prefer to distract yourself by listening to music, reading, viewing television"
As a start, I'm going start building my pre-market ritual with these items:
- Review my trading plan, and then mentally visualize myself trading the plan
- Flip through my "setup charts" that shows how my screen appears right before a specific setup triggers. Example of BRKR - pb2rz setup
- Review key goals for the week, and then mentally visualize myself achieving the goals