Concentrate

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You can be super motivated to trade, filled with deep optimism, have millions of trading capital available, and a solid trading strategy, but if you don’t devote your full concentration to the trade that you have on at the moment, you will lose money.

It’s essential that you learn to concentrate while executing a trade and scrupulously monitor the market action during a trade

Why is concentration difficult? While in school did you have trouble studying in a noisy library? It’s easy to concentrate when we are in a quiet room and when we are calm and at ease. But trading is often chaotic and full of stress. It’s easy to become shaken and lose your ability to concentrate. When you aren’t fully focused on your ongoing experience, it’s easy for self-doubts to creep into your consciousness. You may start having second thoughts and may want to sabotage your trading efforts.

The more you can stay focused on your ongoing experience, the more you can trade effortlessly and skillfully. But how can you concentrate more easily?

First, it’s useful to remember that concentration takes psychological energy, and your supply of psychological energy has limits. If you want to maintain your focus, you must be rested and relaxed. Get proper sleep and nutrition. If you’re tried or hungry, you won’t be able to keep your mind focused on trading.

Second, it’s important to control your stress levels. Stress depletes psychological energy. Even when you are excited rather than agitated by stress, your psychological energy is depleted a little bit each time you encounter an event that gets your adrenalin pumping. The best way to limit stress is through risk management. If you know that you are doing your best to keep potential losses to a minimum, you’ll feel more comfortable and can focus most of your psychological attention on trading.

Concentration is essential for profitable trading. The more you concentrate, the more you feel you are in control. And when you feel your body and mind are synchronized with the market, you’ll trade profitably.

  • cwavefx

    What able special cases like me then? I’ve found that it’s better for me once I get into a trade to walk away because about 85-90% of the time my limits do hit, but because I’m watching it, I tend to exit the position prematurely. I would like to be able to just sit there and watch the trade develope, but lately, I’ve done much better getting into a trade and just going to sleeping and waking up to my limits hitting, possibly just a streak of luck or??? Lack of discipline perhaps :P

  • houmous

    Strangely I agree with Cwave – if I am trading off 15 min candles I am glued to the screen when I place a trade – but I can happily also put a longer term trade on before I go to bed,set my SL and TP and sleep like a baby!

    What one does miss of course is watching the price movement action, which I find helps me more and more in deciding whether to come out completely at my target or keep say half my lots running….

  • cwavefx

    What able special cases like me then? I’ve found that it’s better for me once I get into a trade to walk away because about 85-90% of the time my limits do hit, but because I’m watching it, I tend to exit the position prematurely. I would like to be able to just sit there and watch the trade develope, but lately, I’ve done much better getting into a trade and just going to sleeping and waking up to my limits hitting, possibly just a streak of luck or??? Lack of discipline perhaps :P

  • houmous

    Strangely I agree with Cwave – if I am trading off 15 min candles I am glued to the screen when I place a trade – but I can happily also put a longer term trade on before I go to bed,set my SL and TP and sleep like a baby!

    What one does miss of course is watching the price movement action, which I find helps me more and more in deciding whether to come out completely at my target or keep say half my lots running….

  • Tora

    I tend to agree with Pipshicology… I concentrate when I am decinding when and why I am entering, and then, I just check the price action once in a while.. Just like cwavefx and houmous do :) And usually my limit gets hit. I like to trade this way rather than trading news, you just leave it and relax, and good sleep.

  • Tora

    I tend to agree with Pipshicology… I concentrate when I am decinding when and why I am entering, and then, I just check the price action once in a while.. Just like cwavefx and houmous do :) And usually my limit gets hit. I like to trade this way rather than trading news, you just leave it and relax, and good sleep.

  • JosefBenjamin

    I agree with the 3 of you. I’m the same way. I focus very intently on a few setups, and then I narrow my scope onto the best pair that shows the best potential.

    – then BAM! fire a single shot –

    Sometimes I wait hours before I get the ok to pull the trigger, but I got really good at determining at what time I should check back with the charts to make sure I don’t miss my shot.

    I absolutely love trading this way, and personally, it’s in no way boring( I have video games)…I love being in the zone – in the moment – and just letting the trade come to me. I had to learn to accept this the hard way…makes me wonder why I didn’t accept it before?

    great article, it’s a printer

  • JosefBenjamin

    I agree with the 3 of you. I’m the same way. I focus very intently on a few setups, and then I narrow my scope onto the best pair that shows the best potential.

    - then BAM! fire a single shot -

    Sometimes I wait hours before I get the ok to pull the trigger, but I got really good at determining at what time I should check back with the charts to make sure I don’t miss my shot.

    I absolutely love trading this way, and personally, it’s in no way boring( I have video games)…I love being in the zone – in the moment – and just letting the trade come to me. I had to learn to accept this the hard way…makes me wonder why I didn’t accept it before?

    great article, it’s a printer

  • spidypips

    rest + relax –> proper sleep + nutrition
    |
    Psychological energy
    |
    stress –> proper risk management

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