ZEN Trading Mindset
SCALING, BUYING POWER & PATIENCE ARE THE 3 PILLARS OF MOJO DAY TRADING ALL TIED TOGETHER WITH JOURNALING
Here is a quick challenge for you, over the next week when you log into your trading account keep track of how many times per day you have a negative thought.
Keep a page in your journal, and make a mark with highlighter for every negative thought. Mark down each time you dwell on the past, whether it be a late entry, missed trade, or poor decision. Mark down each time you regret selling too early or too late. Each time you focus on the past or the future, make a check.
What is the point of this challenge? The point is to eliminate negative thoughts and attitudes from your trading mindset. You should not be focused on mistakes of the past or wondering nervously about the future. That is not the MOJO way of trading. This leads to fear in trading and hesitation. A major factor in everyone's trading. Here is poll today in the MOJO Day Trade Room - anonymous so traders can show the truth.
At MOJO Day Trading we believe in having a ‘DGF’ (Don't Give FFFF) attitude when it comes to trading stocks. This may seem abrasive, competitive or aggressive, but in reality, the stockmarket is those and this is far from being either one of those. Alternatively, it is actually the path to ‘trading enlightenment’ as it allows you to trade your best regardless of your results, whether they be positive or negative.
The MOJO Trading Team finds inspiration in the book “Zen Trading Mindset”, written by PHD in Trading ProTrader Mike. This book is focused on core principles that enable traders to combat fragile mindsets and empower the them to achieve a soundness of psyche that is as vital to consistent trading and solid profits.
The key principles and focus of this book are fundamentally important for any trader to understand and grasp, especially day traders, who compete everyday against a volatile and tricky stock market.
5 CORE Principles:
1. Strength The principle of strength centers on the ever-important mental toughness, or the ability to perform when it matters most. According to my book, it’s “having the strength to stand up to pressure.”
Every day trader knows there is endless pressure day in and day out. Day trading is, essentially, constant pressure.
Are you able to handle the pressure?
Can you handle the spotlight?
Do you panic and sell as soon as your stock dips because of your fear of losing?
Do you allow trading anxiety to control your actions?
To overcome this, you need to trade very small, as suggested to all new MOJO Traders. Take some time to trade where your goal is not profits, but to overcome trading anxiety. Trade much smaller than you usually would. Don’t focus on the money, focus on making the correct decisions, no matter the pressure or anxiety. This idea is presented to MOJO Traders every single morning during the morning routine.
Are you flexible in your thoughts and actions?
Are you creative and open to new ideas?
According to my book, your mind needs to be as limber as your body, the most successful traders on the MOJO team are those who are able to adapt to different trade plays and market conditions basing their trade sizes correctly in these conditions. They think creatively and accept things as they come. Are you able to do that with your trading account? Mental flexibility means keeping your mind open.
Take ProTrader Alan for example, when asked if the market downturn could hurt his daily potiential, he replied “Only if it’s just down for me.”
Do you have this attitude with the stock market? Are you flexible and able to adapt if the market is having a down day? MOJO Day Trading is always able to adapt. In fact, MOJO has it’s best days when the market is down. Do you think this would be true if the MOJO ProTraders were unable to be flexible and creative with their thoughts?
3. Balance When discussing balance, ProTrader Mike writes: “Not getting too excited, not getting too depressed… That’s what mental balance is all about.”
Think about the challenge posed at the beginning of this blog article… Is it beginning to make sense now? What about the MOJO ‘DGF’ Attitude? Is it becoming more clear why that is the attitude that leads to stock market prosperity?
One shot at a time. Stay in the moment. One trade at a time. Stay in the moment.
ProTraders do not even look at P/L while trading! They always stay in the moment. One trade at a time. One sell at a time. Everything is focused on the present moment. Then we look at the results, and 95% time they are great. MOJO utilizes his elite level of selective attention to focus on the trade at hand, not the trade he made 10 minutes ago.
Do not dwell on the past or ponder the future. You cannot change the past and you cannot control the future. However, you are always in control of the present moment. Take constant stock of your thoughts and eliminate negative thoughts that distract from what you are presently and actively doing.
4. Stamina A round of golf, similar to a session trading the stock market or a game of poker, is marked by stressful moments and emotional swings. According to Zen Trading, the key is to minimize them as much as possible so that you can conserve your mental energy.
Think about this....analyze your mindset in the middle of a trading session:
“Everybody has that point, usually mid-round, mid-day, when you’re far enough along to know how you’re playing but too far from the finish to slip into cruise control. That’s your Amen Corner, a perilous stretch where you might feel inspired to start playing catchup if you’re off your game, or get nervous about keeping a good round going. The Key: Stick to your game plan. Playing poorly? Don’t fire at pins in a mad rush to make birdies, unless that’s your style.
If you’re playing well, beware of becoming too cautious and protective of your score. Such ill-advised adjustments lead to trouble, trouble raises stress levels and stress burns mental energy- energy you’ll need to play your best.”
Does any of that sound familiar or ring a bell?
Think about it, how many times have you fallen victim to that?
How many times have you been losing in the stock market only to force trades that you would not have otherwise made and lost even more?
How many times have you been up money only to start to trade differently only to protect your profits?
How often does going against your system lead to prosperity? Very rarely.
There is a very distinct reason that ProTraders win in the stockmarket because they don't deviate from the MOJO System. They stay on the "reservation". MOJO Traders have complete faith in the system and they know that because all the trades are based off positive expectancy, that things will work out in the end. It’s why MOJO Traders do not have to look at P/L while trading, they already knows that if they stick to the MOJO System and execute the plan, the profits will be there!
Keep it profitable