Change The Way You Think To Change The Way You Feel

June 25, 2010

Sometimes very simple changes can make a big difference in the way you feel.

If you've just had an argument, if you've been under a lot of extra stress, or if you've been sick in bed with the flu, you're obviously not feeling up to par.

When that happens, your judgment is impaired.

You won't make the best trading decisions, at least until you change the way you feel.

Most of the time, that change can be completely voluntary.

What you think determines how you feel. If you think the market is out to get you, your reactions to market fluctuations will be quite different than they will be if your thoughts are ones of rational and logical control.

It pays to keep a close watch on what's influencing your thoughts. Are you listening to the news? Are you tuning in to other people's opinions and prejudices? Are your thoughts even your own?

It's a good idea to check in periodically during each trading day. Do a quick assessment of what your thoughts have been, and where they're going now.

Then pay attention to the way those thoughts are making you feel.

After that, decide whether or not you're really in the right frame of mind for trading.

This little bit of self-diagnosis can keep you from making big mistakes. It will save you money in the markets, and do wonders for your peace of mind, too!