Trading In the Zone
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How to lock yourself and your focus into the trading zone
In this article, we’re going to discuss a few ideas for how to be fully focused and always on top of things, also known as trading in the zone.
Every day in which we come to our trading setup requires us to be hyper-focused on the job at hand. We have to be fully attentive to what we do and how we do it in order to always be on top of things.
Since trading deals mostly with risk management, that means our job is to mostly manage events that are happening or about to happen to our investments.
How can we be on top of things in an environment where we don’t always know what is happening? By being on top of things and having an action plan for every situation.
Continuous Analysis and Reassessment
Even one you’re in the trade and you’ve already decided the bias for the trade, you still need to keep reassessing the situation. This is because different events, participants, and economic events always are always lurking and ready to pop up. You must be aware of traps by continuously changing your trading analysis.
This means that it’s crucial that you’re open all the time to changing your trading analysis. Not in a way to confuse you, but in a way that will allow you to process all of the new information that reaches you. Be open-minded and willing to change your projected bias towards your trade.
Not only will this way of thinking and routine help you react fast to changes in market situations, it will also keep you busy. Instead of working in a set and forget type of way, now you’ll stay busy and stimulated all of the time.
This means finding new angles and assessments in order to find renewed conclusions for your changing bias. If the situation turns on you, you’ll be fast enough to reduce risk and flip things in your favor.
Fully Aware of your Emotions Towards the Market
While in a trade, the market will throw you through many different emotional situations. This means you must be aware of what your true feelings are in certain situations.
For example, after a winning sequence, the market can give you a prosperous feeling that might create the illusion that you’re on top of things even though you’re really not. Maybe it makes you pretentious in your attitude towards the market. This might then lead to overconfidence on your next trades.
These are the emotional blind spots you need to be aware of. If you’re not aware, you won’t know you’ve put yourself in danger until it’s too late.
The same thing happens after a string of losses. You might be too fearful of taking action and overly hesitant and scared to get back in.
When you experience emotions, always ask yourself what you’re feeling in that moment. Chart your emotions and create your own way of dealing with them. If you need some help, we have many articles addressing this side of trading.
To be in the zone you have to have your emotions in check.
A Solid Trading Plan
We’ve said it many times before, but in order to be in the zone, there are very few things more important.
A trading plan gives you a routine and lets you know what to do in every situation. It covers your analysis, routine, preparation, entry, exit, modifications, sizing, and growth. Everything should be plotted into your trading plan. But never rest on your plan. It also must be constantly changing evolving in order to reflect the market.
While in a trading routine, you should always be reworking and rewriting the trading plan.
The downside is, if you’re not careful, you can harm it or mistakenly create new rules that will put you in a place where your methods are less efficient.
Therefore, we recommend leaving a part of your trading plan that you don’t touch. Call it the core or something else that’s equally important, but make it the fallback plan where you can go and rewrite from the beginning.
Make this the default so if something goes wrong, you can go right to the core in and regroup your ideas and plan. It’s a big safety measure for how to refine your plan while not risking negatively hurting it.
Focus on Only What’s Important and Relevant in the Moment
This is subjective so make sure to judge it appropriately according to your unique situation. You might be engaged in a community and feel obliged to do more for them and contribute more. Sometimes you may be swamped with new ideas and you’ll want to try them out. Be aware of all the influences and make sure to bring yourself back to what works best for you and what serves you best.
Be a bit selfish here. Don’t participate in inquiries while you’re waiting for trades to develop if these inquiries pull your focus away from your work. You need to set the highest priority for your own trades.
Being social and engaged with others can sometimes swap you away from your own goals and targets.
However, being fully committed to your community or trading groups also has huge benefits. Don’t neglect those areas but define specific times when you can contribute. As long as it’s not at the expense of your trading.
Crafting a special routine and regiment that allows you to laser focus into the zone is a crucial part of succeeding on your own as a trader. Establish it and maintain it and hopefully, you’ll enjoy a successful career trading.
Photo by Drew Graham
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