Estimated Reading Time: 5 Minutes
In my previous blog post we talked about using “I will” statements to boost your confidence as a trader. Reading your “I will statements” aloud will help you to start the trading sessions with lots of energy.
But as you start trading, your energy might decrease.
And even though you were pumped up before you started, now the energy gets sucked out of you. This could happen for one of the following two reasons:
- The markets are slow and you have to wait forever the right opportunity.
- You placed a few trades, but they didn’t work out and you’re down for the day.
You might feel how you are sitting in front of the computer and become lethargic, watching the markets like a zombie… and you let trading opportunities pass by.
Top traders are able to maintain high energy throughout the whole trading session, so that they are alert every second and can take advantage of trading opportunities as they present themselves.
How do they do it?
How can they maintain a high level of energy throughout the whole trading session, even though the markets might be slow or they had a few losses?
The explanation is in the “Energy Equation” – developed the Ray Burchett
(Creator of Intuitive Development for Traders).
The Energy Equation states that there two elements that move inversely to each other:
Energy and Anxiety.
As anxiety rises, your energy decreases and the vice versa.
So what causes anxiety?
On a high level, anxiety is either caused by things we can control or by things we CANNOT control.
If anxiety is caused by things we can’t control (e.g. slow markets), then we need to learn how to let go of it. And this does not only apply to trading – it applies to all areas of life. If we try to control things we can’t control, our anxiety rises – causing our energy to decrease.
If anxiety is caused by things we can control (e.g. proper execution of our trading plan), then we need to focus our efforts on these things. By focusing our efforts on things we can control, our energy rises and our anxiety falls.
Sounds simple enough?
Well, there’s one thing that’s engraved in our human nature which sabotages all our efforts:
Our Ego has only two purposes:
- To make us believe we can control things we can’t control and
- to make us believe we know things that we don’t know.
So our primary task is to get rid of our ego and to understand that there are some things we don’t know and things we can’t control.
Here’s something that you can do right now to help you to decrease anxiety and increase your energy:
- List the things you can not control as a trader, e.g. price movement or slow markets.
- List the things that you can control, e.g. execution of your trading plan.
- Let got of things that you can’t control!
- Focus on the things that you can control.
Do this little exercise right now and feel your energy rising.
Can you feel it?
Leave a comment below.