Visualization Skill for Trading Success

In the heat of the markets it is your mental and emotional state that makes the real difference to your trading performance. If you take a moment to reflect on your own trading experience you can probably think of many examples of when your thoughts or your emotions got in the way of your trading performance, when you took actions that prior to, and in hindsight, you know you shouldn’t have done. It is my experience that in trading many traders often know what to do, but find that the real challenge is doing what they know; in following through consistently with their trading strategy.


Trading is a mentally and emotionally challenging activity and if you want to achieve success then it is important to identify your own unique ‘process of success’ – take a moment to consider what it takes for you to perform well in the markets – and then to condition it, to train yourself to focus on precisely what it takes to be successful, to develop the thoughts, feelings and behaviors that enable you to get your best possible results.


May 15, Nikkei 225

On opening, well aware that this is at the best spot to long, since it is at "land" support zone. Whatever opportunities happen in the middle of SkyLand, probabilities drop. Once it hit Sky with ABN-U, probabilities increase again.


With the above analysis, position your size at the right zone and SKIP those low probabilities trades. This would significantly reduce your losing trades.


Visual Power

Perhaps one of the most powerful and beneficial aspects of mental training is the use of visualization.


Neural pathways can be developed and strengthened through the actual activation of the physical feeling or behavior or interestingly, and importantly through the visualization of that feeling or behavior. The mind at a neurological level cannot tell the difference between a real and an imagined experience, as evidenced through neuroscience studies using brain image scanning. In real life we can understand this by thinking about a time when you have had a nightmare. Was the fear any different to in reality? No. Your heart was pounding, you felt scared, you had clammy hands and were sweating. Your body responded just as though it was real. The utilization of specific visualization techniques can have a big impact on the speed at which conditioning of behaviour and emotional response occurs, and that the appropriate neural pathways are formed.


Using Imagery To Overcome Trading Challenges

Here is an extract from a visualization exercise that is designed to help you to develop your abilities to cope with specific trading challenges you have. You can utilize the technique below very simply by taking a moment or two to relax and then reading through the script. You will soon be able to perform this by memory alone.


And now take a moment to consider some of the setbacks, problems and difficult situations that occur for you in your trading… Picture one example now… Float forward into your imagination…. Imagine it happening to you sometime in the future….What is it? …Where?... Step into your body and imagine yourself responding positively to that situation…dealing with it effectively… Hear yourself making positive and useful explanations to yourself… Feel your self being confident about your ability to deal with these situations…. Composed and focused…and experience yourself successfully resolve that problem/overcome the challenge… Coming out on top…



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