Concentrate or Lose Money

You can be highly motivated to trade, have abundant capital, and a dummy-proof trading system, but if you don’t apply your FULL concentration to the trade that you have on at the moment, you’ll rarely make profits. It’s imperative that you learn to concentrate while executing a trade and meticulously monitor the market while you’re in the trade.

While in school did you have trouble studying in a noisy library or a crowded Starbucks? 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 tired 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 in sync with the markets, you’ll trade profitably.

  • spidypips

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

  • new2this

    great advice!

  • dhannan1

    You couldn’t have been more accurate…that is totally me! I trade from 12:30 AM to 4 AM, and if I don’t get sleep before I trade I can’t focus properly and also when I get greedy and trade too many lots, I get scared and don’t trust my trading system and either get out too early or take a loss and don’t allow the trade to breath and could have ended up with a nice profit. THANK YOU! We need to be reminded the basics.

  • new2this

    great advice!

  • dhannan1

    You couldn’t have been more accurate…that is totally me! I trade from 12:30 AM to 4 AM, and if I don’t get sleep before I trade I can’t focus properly and also when I get greedy and trade too many lots, I get scared and don’t trust my trading system and either get out too early or take a loss and don’t allow the trade to breath and could have ended up with a nice profit. THANK YOU! We need to be reminded the basics.

  • Pipmeup

    That is excellent advice. I do concentration exercises for 10-15 minutes a day and have found this to have an enormous impact on my profitability and life in general. I’m an end-of-day trader and when I am totally focussed and present my trading flows nicely. I think, especially as a day trader, that if you can’t concentrate for whatever reason you’re better off walking away until you can.

  • Pipmeup

    That is excellent advice. I do concentration exercises for 10-15 minutes a day and have found this to have an enormous impact on my profitability and life in general. I’m an end-of-day trader and when I am totally focussed and present my trading flows nicely. I think, especially as a day trader, that if you can’t concentrate for whatever reason you’re better off walking away until you can.

  • JohnnyBSmart

    Pipsychology,

    If you’re sitting there watching the computer screen you will go crazy and blind. Use alerts to wake you up. I found one thing that is very important to make money. Determine the take profit point and set a stop. I read, post on forems, eat to much, watch movies and make a lot of money all at the same time. Don’t make it so hard. If you’re nervous as a Jay bird then stop trading live and demo until you can do it and you’re sick of it. This should take about six months. If you don’t understand a thing I just said then educate yourself first before trading. Too many newbies get this backasswards.

    Think about it. If you’re going to do something as simple as do some work around the house, what is your thinking process? First you get the tools you need so you can complete the job and don’t forget the cold beer. So why does so many people trade with their tool box empty? It boggles my mind how fast they wish to lose their money.

    Trade well and prosper,

    Johnny

  • JohnnyBSmart

    Pipsychology,

    If you’re sitting there watching the computer screen you will go crazy and blind. Use alerts to wake you up. I found one thing that is very important to make money. Determine the take profit point and set a stop. I read, post on forems, eat to much, watch movies and make a lot of money all at the same time. Don’t make it so hard. If you’re nervous as a Jay bird then stop trading live and demo until you can do it and you’re sick of it. This should take about six months. If you don’t understand a thing I just said then educate yourself first before trading. Too many newbies get this backasswards.

    Think about it. If you’re going to do something as simple as do some work around the house, what is your thinking process? First you get the tools you need so you can complete the job and don’t forget the cold beer. So why does so many people trade with their tool box empty? It boggles my mind how fast they wish to lose their money.

    Trade well and prosper,

    Johnny

  • virtecs

    lol..not to be an a-hole or anything JohnnyBSmart…but it’s ass-backwards not backasswards. LoL. Just thought you should know before using it in a conversation.

  • virtecs

    lol..not to be an a-hole or anything JohnnyBSmart…but it’s ass-backwards not backasswards. LoL. Just thought you should know before using it in a conversation.