Archive for August, 2011

5 Steps For Staying Focused

Thursday, August 11th, 2011

Have there been times that you wanted to stay focused and you got distracted?

This is one of the most common challenges that people deal with. Lack of focus is the reason that people don’t get the results they want.

The impacts are that they start things and they don’t finish them. They go from one idea to another idea. Because they don’t finish, they start losing confidence, feel worried and concerned, and become exhausted. All of these lead to a feeling of being out of control.

So, what are the strategies that you could use to stay focused?

  1. Know what you want

    As obvious as it might sound, it is important to know what it is that you want. Be clear and specific about your goals.

    You might have heard that you need to collect the dots before you can connect them.

  1. Believe that you can have it

    There is a saying by Henry Ford: If you think you can or think you can’t, you’re right.

    So, if you don’t believe that it can be done, you are going to sabotage yourself. Why? Because subconsciously it is important for you to be right!

  1. Take action

    Again, this might be stating the obvious. But I have seen a lot of people who think more about what they want to do than taking any action. They allow their fears to stop them from what they want because they are afraid of making a mistake.

    One of the signs of great leaders is not that they do not make mistakes. It is that they handle the consequences and move on.

    Plato says, “To risk nothing, is to risk everything.”

  1. Keep the end goal in mind

    When obstacles show up, remind yourself what your end goal is and why you want to have it. By doing so, you keep your focus.

    You might have heard that planes never fly in a straight line. In order for them to get from their departure point to their destination, they use a gyroscope which allows them to adjust their route and stay on their path.

    You are going to get distracted. By focusing on your end goal, you become your own gyroscope and you can stay on your path and achieve your goal.

  1. Be Committed

    We all have heard about commitment. One of the best descriptions that I heard comes from Neale Donald Walsch. In his book, When Everything Changes, Change Everything, he describes it through the following story:

    One day a guru was teaching his students, when a student said: “Master. You have been teaching us for months and none of us seem to be getting any closer to enlightenment. What does it take?”

    The guru smiled and said: “You must take a sieve to the ocean and fill it with water.”

    The students did not understand. They grumbled: “This is not a real guru. Everyone knows you cannot fill a sieve with water. It runs right out. That’s the problem with what he teaches, too. It sounds good, but it runs right out.” So his students deserted him.

    All but one. A young woman said: “Master, I know the problem is not in your teaching, but in my understanding. Help me to understand.”

    Filled with compassion, the guru replied: “Come with me.”

    He took her to a store and bought a sieve. Then he took her to the shore. “Here,” he instructed, “fill this sieve with water.”

    Eager to learn, she went to the water’s edge and dipped the sieve into the water. But when she brought it to him, all the water had run out. He only smiled. “Fill the sieve with water,” he said quietly, and so she tried again, knowing that he would not ask her to do something she could not do. But it was no use. She ran back to him as fast as she could with the sieve, but the water ran out.

    “Fill the sieve with water,” he said simply, and she tried once more, this time dipping the sieve and turning and running back to him so fast that she lost her breath. Still, no water remained in the sieve. “To hell with this!” she screamed then. “I’m done with this! I’m done with this whole life of being a spiritual student!” She threw the sieve fiercely into the air and stomped away.

    “Wait!” the guru called. “Look.”

    The young woman turned just in time to see the sieve riding the ocean waves… then sinking beneath the surface and disappearing. The guru approached the student. “You cannot just dip in here and dip in there. This is not about dipping and running. You have to throw yourself in. You have to be totally immersed.”

    And the student understood.

    How is your commitment? Is your sieve filled with water?

Focus is the key! Like Albert Einstein said:

“It’s not that I’m so smart, it’s just that I stay with problems longer.”

Here is to making trading success your habit™,

5 Keys to Deal with Trading Fear

Thursday, August 4th, 2011

How comfortable are you dealing with uncertainty?

As volatility and uncertainty increases, so does fear. When our emotions run high, then our decision making process suffers.

It seems like the harder we try, the worse things get.

We start reacting to things instead of being proactive. Then we feel overwhelmed.

Does this sound familiar?

One of the hardest things to deal with is uncertainly.

We have strategies for managing our risk in most aspects of our trading. However, we seldom talk about or have strategies for the most crucial element, our Personal Risk.

Have you noticed the panic that is going on in the markets? Do you know people who have been a contributor to it? Do you know them intimately?

How do you manage your Personal Risk?

  1. Trade With a Clear Mind

    Do not make emotional decisions. Realize that emotions are emotions. What differentiates the successful traders from others is how we recalibrate our reactions to our emotions.

    I was watching an interview with a surfer. The interviewer asked him what he does when a big surf comes and he goes underwater. The surfer said it was simple. “If I panic, I only have 3-5 seconds of air to breathe. If I stay calm, I have 45-60 seconds of air.

    What does surfing have to do with trading? If you panic and operate from a place of fear, you could lose all of your capital. However, if you take a moment and think about your strategies, you can have much better results.

  1. Look at Your Portfolio Objectively

    Think about your portfolio as if you are looking at the portfolio of your best friend. How would you advise him/her?

  1. Limit Your Input

    There are a lot of conflicting points of view. If we want to listen to all of them, it becomes very confusing, and the confused mind does not make a decision.

    Instead of listening to everybody, pick the top 3 people that you respect and listen to them. This way, you can remain focused and have much better trading results.

  1. Be In Tune With the Markets

    Trade the markets as they are and not as you want them to be.

    If we are not in tune with the markets and don’t listen to them, we are going to be in a losing game.

    After all, hope is a lousy hedge.

  1. Be In a Supportive Environment

    It is important to listen to the people that we respect and are successful.

    There are traders whose spouse and/or friends have little or no risk tolerance. As a result, these traders allow the fear of their spouse and/or friends to become the boundaries of their success.

    Who are you choosing to surround yourself with?

Remember, not the most talented or skilled person wins the game. The game is won by the ones who can manage their Personal Risk and have a Mental Edge.