¨TRAIN YOUR MOST POWERFUL TRADING TOOL Þ ÞÞ YOUR MIND¨

THE MENTAL FITNESS of TRADING

WHAT SHOULD YOU BE DOING FIRST THING IN THE MORNING

BEFORE YOU START TRADING?

IT IS VERY IMPORTANT TO FEEL GOOD!!!

If you're not in the right mental frame of mind to be an active trader on one particular day, don't push yourself. Take a rest, take a break. Do not feel pressured to trade. TRADE ONLY WHEN YOU CAN DEVOTE 100% OF YOUR MIND AND BODY TO THE TRADE. Anything less will usually result in losses.

80% OF TRADING IS MENTAL CONTROL

IMAGINE....Tomorrow we are going to change the rules of driving. Traffic lights are going to look like this. YELLOW - GO, GREEN - STOP, RED - CAUTION. Think for a second. Can you see the chaos and accidents on the road. You would all be very confused. You would have to think what to do when approaching the light. You would probably have too attach a note on your windshield with the new rules.

Extreme Reading

Ignore the fact that the subject paragraph on the left is badly mangled. Try reading it through anyway.

Amazingly, you will find that it is not all that hard to follow.

Here is what the paragraph actually says without spelling errors:

"THE PHENOMENAL POWER OF THE HUMAN MIND. According to research at Cambridge University, it doesn't matter in what order the letters in a word are, the only important thing is that the first and last letter be in the right place. The rest can be a total mess and you can still read it without problem. This is because the human mind does not read every letter by itself, but the word as a whole."

NOTE: If English is a foreign language to you, you can not read this. WHY? It is not natural to you.

The human MIND is "wired" a certain way for ordinary things such as driving, reading, trading, etc... For driving, our back mind is programmed: RED - STOP; GREEN - GO; YELLOW - CAUTION. When we drive, we don't have to think. You stop on red and you go on green. Small changes to natural things bring confusion and difficulties. For example, I remember driving in the Bahamas one summer where they drive on left side of the road. I was scared and confused and actually had to attach a note to remind myself to "stay left". It was a disaster. I was lucky to survive. In any market, if you're not wired the right way you'll be lucky to survive. Do you see where I'm going with this. You're probably thinking what driving or reading have to do with trading? You are right. Nothing! But, I found that to be the easiest way to explain how the human mind functions. Now you're going to understend how we are "SET-UP" to lose in the market, any market. I may purposely repeat myself sometimes because it's very inportant to understand this.

WE ARE "SET-UP" TO LOSE

From the time when we were kids, every single game we played we wanted to win. All the time, the loser is the one who wanted to play another game. Losers never, never quit. Winners are always happy and don't want to play anymore. Amazing! The "left" side of our brain stores those images. That side of the brain never wants to lose. That's how our brain is "wired". NEVER LOSE...hang in there and don't give up... Now we have to train the "right" side of the brain. To lose one round is OK. It doesn't mean you are going to lose the fight. In order to win the war, you don't have to win every battle. But, you can't afford to lose the big battles.

SUMMARY

"LEFT" SIDE NATURAL - DISASTER Never give-up Never lose Win every time Happy with any win	"RIGHT" - "HOLY GRAIL" IN YOU Realize when to give-up Accept small losses Can't win every single trade Give yourself a chance for big win

If we offset SMALL WINNERS with SMALL LOSERS, and don't have a BIG WINNER, we're going to be BIG LOSERS	If we offset SMALL WINNERS with SMALL LOSERS, and don't have BIG LOSERS, we're going to be BIG WINNERS
CUT YOUR LOSSES AND LET YOUR PROFITS RUN Much easier said than done. Why? Your right brain tries to say "accept a small loss", but your left brain insists on winning.

A REAL STORY TO REMEMBER: MY TURNING POINT

My trading partner Rob and I, always exchange tips. One night, I suggested four trades. I placed the orders and set my stops and targets. Rob placed the same trades. The very next day, we profited from all the trades. Then, we placed four more trades. Everything looked good. The next day, six of our trades started making money, and two trades started losing. I decided to alter my plan.

I was sure that the two losing trades were going to turn around so I removed my stops, and I removed my targets on the rest of my trades. I wanted to run my profits higher, in case my two other trades dropped some more. I didn't tell Rob what I did, because he didn't like altering a trading plan in middle of a current trade. The next day

Rob was stopped out of the two loosing trades, for small loses. In three trades he limit out for a big wins. The next day he manually exited the rest of his trades for three small wins. He made a killing. I should have had the same results, but my trades went more south. Those two trades turned into HUGE LOSERS. My other winning trades also turned into loosers, all accept one, which I exited for a small gain.. After two days, I exited the rest of my trades. I ended up with TWO HUGE LOSERS, TWO BIG LOSERS, THREE SMALL LOSERS, AND ONE SMALL WINNER. I was destroyed! THIS WAS AMAZING. TWO PEOPLE, EXACTLY SAME STRATEGY, SAME TRADES, SAME STOPS, SAME TARGETS, AND ONE ENDS UP A HUGE WINNER WHILE THE OTHER ONE A HUGE LOSER.

OUTCOMES	ROB'S	MINE
BIG WINNER	3	BY REMOVING MY TARGETS I TURNED MY WINNERS INTO LOSERS
SMALL WINNER	3	1
SMALL LOSER	2	3
BIG LOSER	WHEN HE GOT A STOP OUT, HE ELIMINATED BIG LOSESS	4

When he called me to go out to celebrate our successful trading week, I told him what had happened. His profitable week was my worst week ever! He couldn't believe that two losing trades messed me up so bad. He told me a story about the farmer and his best cow. She was giving him 10 gallons of milk, but would kick the bucket over, spilling it all. His point was that in order for him to keep the milk he had to protect the bucket.

He sent me an e-mail, with this picture.

He continued. DON'T EVER FIGHT THE MARKET, EVER!!! Believe it or not, squares A and B are the same color, yet they appear different. I know! You want to fight me too, like you fight the market. You see two different colors, you are sure that you see two different colors, you don't even consider that they might be the same. Different surroundings make the same color appear different. Just like the market, different circumstances (news, economy, rumors, unexpected events), can drastically change the market conditions. What you think you see, may not be what it is. So protect your ASSets. How can you protect your ASSets? Easy. NEVER REMOVE YOUR STOPS OR YOUR TARGETS. Once you hit your target, TAKE THE PROFIT. DON'T SPILL THE MILK!!!!!! When you fight the market you lose money, when you fight me about the colors, it's free. I'm going to prove to you that squares A and B are the exactly the same color. Right click on the picture, and SAVE PICTURE AS, to a file. Open the file and PRINT the image. Now cut

out each square along the edges. Remove them. Hold them side by side. Amazing !!! (note that some printers, especially laser printers, have "enhancement" processing that increases the contrast of edges. This can cause the printed squares to have slightly different values of gray).

DON'T FIGHT THE MARKET. DON'T BE STUBBORN. PROTECT YOUR ASSETS!

The next day when I got to my office,I found a note on my computer screen "DON'T SPILL THE MILK". I still have that note on my screen to remind me about my worst week ever and to remind me not repeat the same mistakes. Maybe you should put same kind of a reminder on your screen. I can't thank Rob enough for his help with my trading (he changed my trading forever). I hope this helps your trading too. What did I learn. PLAN YOUR TRADE, AND TRADE YOUR PLAN. DON'T FIGHT THE MARKET.

WE HAVE TWO CHOICES TO BUY OR SELL

In the market there is two kinds of people, BUYERS and SELLERS. Each see the market differently. Both can make valid arguments for their decisions to buy or sell. But only one can be right. Who's right?

A donkey or a seal ?

Old hag or young woman ?

An Indian or an Eskimo ?

"Wife or Mother-in-law"

Where are you going to put your money? You choose your own poison. Chances are whatever you choose your going to be wrong. Why? Because your money or my money do not move the market. What does this mean? It doesn't matter what we think, we can only guess, the only thing that matters is what "BIG MONEY", or "BIG BOY'S(BB)" ( institutions, goverment, companies..) see.. They are always right. Their money moves the market.

Duck or Rabbit ?

Do we care ? NO.

What do we care ?

What "BB" see

Do we want to guess what the "BB"

see? NO.

Do we fight the"BB"?

NO.

Do we want to join the "BB"? YES.

This is why we have to be patient, have an open mind, not be stubborn, and have a plan. Always keep in mind that a Rabbit can also be a Duck, that way you can act properly in a timely manner. This is why you don't want to fight the market, because it doesn't matter what you see, what really matters is what ""BB's" see. You have two choices, to fight the "BIG BOY's" or to join them. It's clear that it is much better to join them.

WHY WINNING TRADERS KEEP WINNING AND LOSERS KEEP LOSING

PATIENCE:

Do not chase a trade or enter a bad trade out of boredome.

Let a good trade mature, not taking a profit too soon, too small.

DISCIPLINE:

Get out of a bad trade quickly, don't tie up your capital in the bad trade.

(SMALL LOSS - A COST OF DOING BUSINESS

BIG LOSS - TRADING MISTAKE).

Take healthy, regular profits out of yor winning trades.

TRADING SKILLS:

Add skills that you are weak in and maintain consistency in the ones that you are already good.

PERSONAL ATTITUDE:

Expect to succeed. Practice, concentration, planning, and a systematic logical approach are vital.

After understanding the importance of mental control (MANY TRADERS DON'T) I've decided to study human behavior. If you would ask me what single thing improved my trading the most, my answer would be the study of MENTAL CONTROL. This subject is undermined by many traders. Are you having a hard time handling losses? Does your discipline waiver when markets get very volatile? Do you doubt your trading system after a few losing trades? ...... If you are having these problems, you're not alone. All traders are facing their own emotions. Studies show that 90% of our mind's power is in the subconscious mind and is responsible for our behavior, habits, and performance. We have two choices. That 90% can either work for you, or work against you. I believe that anybody can develop "good trading habits" with a "good trading plan". I'm convinced that everybody can be a successful trader. Winning traders know that. That is their biggest secret ( 90% of their subconscious works for them. I'm in the process of writing a book about the mental control. That book should be the single, most important book on every trader's bookshelf ). I would love to make you a successful trader too. Together with my good friend we have developed three mind exercises to get you in the trading zone, explaining what the mind exercise can do for you. You'll learn to maintain discipline, plan your trade and trade your plan, reduce stress, gain the strength to take your losses, eliminate greed, fear, doubt, hesitation, form good trading habits and eliminate the bad ones... I hope that helps, I will do my best to simplify this very important part of trading for you. Let's go EXERCISE NOW!!!

GETTING IN THE "TRADE ZONE" TRAINING TOOLS

WARNING!

Approximately one in four thousand people suffers from Photosensitive Epilepsy (PSE). PSE is sensitivity to flickering or intermittent light stimulation and visual patterns. If you start to feel ill when looking at this page, do not persist as it is possible that you suffer from PSE and prolonged exposure to some of these images could result in a seizure.

INSTRUCTIONS

Concentrate on the spiral for about 20 seconds, then concentrate on the pattern on the right . When you're concentrating on the pattern, say to yourself "I AM A TRADER" (you have to believe what you're saying), "MAINTAIN DISCIPLINE", "MAINTAIN PATIENCE", "TRADE YOUR PLAN", "I'M SERIOUS ABOUT TRADING", "LET A GOOD TRADE MATURE", "GET OUT OF A BAD TRADE QUICKLY", "AS I IMPROVE MY TRADING SKILLS, I WILL EXPECT TO MAKE HIGHER PROFITS, WHICH I WILL SPEND ON (your choice)". This should take you about 20-30 seconds. When you finish, close your eyes for a few seconds and relax. When you open your eyes, look at the first image. Visualize SUCCESS like a CHAMPION TRADER. Now you are done, this exercise won't take longer than 1 minute. EXERCISE YOUR MIND EVERY TIME BEFORE YOU START TRADING! (LIKE PROFESSIONAL ATHLETES NEED TO WARM UP THEIR BODIES BEFORE EACH GAME, YOU NEED TO WARM UP YOUR MIND)

ADVANCED "TRADING TO WIN" MINDSET

SCREEN SAVER "TRADE ZONE"

I'm convinced that this "TRADE ZONE" exercise will help your trading as much as it has helped my trading. This "trade zone" will work for you. I want you to start experiencing the power of subconscious mental and emotional trading. Winning traders keep winning not because they are smarter than us, but because they are mentally tougher than us. I GUARANTEE , YOU ARE GOING TO GET THERE TOO!

FINANCIAL PRESSURE

Most of us could use a little extra money these days, so there is always a little financial pressure to trade profitably. But financial strain can adversely impact your ability to trade with a calm, relaxed, focused mindset. If possible, it is useful to relieve some of the financial strain. A straightforward way to lessen financial pressure is to reduce the size of your trades. The less money you risk on any single trade, the less stress you will feel. Thinking in terms of probabilities can also relieve financial pressure. That is, if you remind yourself that any single trade is just one trade across a series of trades, and that the profits across a series of trades are all that matter, you will feel more relaxed.

SOCIAL PRESSURE

Social pressure can also tax your limited psychological resources. At its worst, we may continually feel that someone is watching us. Our family, friends, or spouse may expect us to make profits. It's natural to care what they think, but caring too much can gnaw at us. The social pressure to perform can upset us so much that we make trading errors, or hold on to losing trades to avoid having to admit that we have been mounting losses. If you feel social pressure, you may get into the habit of keeping how you are doing to yourself. But if you must tell close friends or loved ones how you are doing, make sure they understand that the trading business has its ups and downs, and that it is best not to feel too excited during the ups nor too upset during the downs. Finally, perhaps the biggest source of stress is the expectations you place on yourself to do well. If you want to master the markets, you have to be ambitious. But, on the other hand, too much ambition can put unnecessary pressure on you. It's better to take it easy. Don't try to be perfect. Try to work hard, but at the same time, just do your best. When the heat is on, it's hard to perform at your best. So why push yourself too hard? Why not take some of the pressure off? The less pressure you feel, the more free you will trade and the more profits you will make.

It is very important to exericise two or three times a week. Paid members only.

Click on this page and follow the instructions.

Save and right click to install the screen saver.

Exercise every time your screen saver pops-up.

Visualize SUCCESS.