The goal of a professional archer is to hit the centre of
the target with each arrow he shoots with. His focus is on the red
circle which is the exact middle of the board. He has trained
himself to only focus on that location. Anything outside of that
circle is not in his vision at this precise moment.
The archer draws the bow with his left hand
and pulls back the arrow with his right. He pauses for a moment
before releasing the arrow: the sound of air being split is
followed by a thud. Another precise hit, another trophy for the
mantelpiece.
As a trader, focusing on your target means
that you must first know what your target is. Too many traders jump
in and out of trades without an aim. Instead they hope that this is
the one that will enrich their account but sadly find that they
aimed in the wrong direction.
Some traders play a game of moving targets.
One minute they are in a trade and the next minute they are jumping
out and into another. They repeat this exercise endlessly not even
realising what they are doing. They are caught up in a frenzy of
chasing a moving target.
Back to the archer, picture how calm and
poised he looks before shooting the arrow. His focus is so deep
that he would not have heard the scuffles in the audience or felt
anything outside his body. He is totally in the moment, focused
solely on the “right here right now”. He and the arrow together
with the target became one. He blocked off everything outside and
concentrated fully on the moment. This requires preparation and
discipline.
Each trade is like each arrow being shot
independently. Each requires just as much focus and preparation.
Although I might have three or four trades running simultaneously,
each one is being treated independently. Each one is given the
required attention and focus it deserves to make it a winning
trade.
Once a person has been trained to perform with
precision, theoretically they should hit the target every time. But
this is not always the case. In the archer’s situation, maybe he
was not feeling 100% physically. In that case he should not have
been taking the shot. Maybe it was too windy. Here, he could not
have done anything to control the external environment. But in most
cases, it is more likely that there were distracting thoughts or
doubts in the mind that prevented the individual from performing at
his best.
Once you are poised to take a trade based on
your method or system, ignore all outside noises and focus on
making this the best trade. Treat each trade individually and
prepare yourself mentally to take the necessary steps to perform as
a top trader.
If you are a technical trader you should pay
attention to the chart and not the news. This is your trade based
on your opinion. Do not ask somebody else’s opinion because they
will surely give you just that, their opinion.
Once the trade has been initiated, focus on
your exit point. Ignore all outside influences and act according to
your trading plan to try and make this a winning trade. If
there were outside circumstances to veer your trade off course,
then accept it. It will not always be a bad decision on your part
that will make a trade unsuccessful. You may have done your best
under the circumstances.
Even the most successful traders have losing
trades, but following the type of focussed trading plan outlined
here will help you on your way to stress-free trading.
Good luck and happy trading
Please remember spread betting is leveraged and can result in
losses quickly exceeding an initial outlay. It’s not suitable for
everyone and you should make sure you fully understand the risks
involved. If you have any doubt, please seek independent
advice.