Tuesday, December 05, 2006

Mental Practice

Today I did some mental picturing. I got an idea from reading Psycho-Cybernetics. I wrote down my day on a piece of paper and imagined myself experiencing a good trading day. I am going to start doing this daily practice before I start trading. I think it will help boost my discipline and confidence.

I also made a change in my chart layout. Instead of having 4 moving averages(5, 20, 50 and 200 SMA), I will be using 2 moving averages(5 and 34 EMA) only. This will simplify my decision making process. I am often reluctant to enter positions because the the stock is trading near one of the bigger moving averages or I would get out too soon. By eliminating those I should be able to decrease my chances of taking early profits as the stock trade near one of the moving averages. Let's see how my trading goes today.

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About Me

I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.