Learning Flawless Execution of a Trading System II

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The same type of mental dynamics described above will also apply to learning how to
Traders World 371
properly execute a trading system. You will likely encounter many beliefs acting as force to divert
your attention away from what you need to-do when you need to do it. As a result, you will need
to employ mental discipline So a counteracting force to stay properly focused until you build a
mental framework that is consistent with His new expression of yourself.
To build the mental framework necessary to execute effectively, I suggest that you take
some percentage of your trading capital and designate it as money set aside strictly for
educational purposes. With this designated capital, buy and trade a simple trading system with
well dened entry and exit points. This system does not have to be expensive. You can get
one out of the many books an technical analysis available today or; choose one being offered
at an investment conference. I thank it is important to buy one instead of devise one of your
own because it might beta little easier to stay focused on the objectives of this exercise. Any
system you devise you are naturally going to want to make money with. Save it for later, after
you have learned how to execute properly.
You will also need to nd a system that suits your unique tolerance for taking a loss. The
amount of money you risk per trade should be an amount that you are completely comfortable
with. If you don’t stay within this tolerance level you will be, at the very least uncomfortable,
in which case to whatever degree you are, you shut down the learning process. When you
are feeling pain, instead of being focused on what the market is teaching you about itself
and yourself, you will be focused on information that will ease your pain. Which usually
results in a painful lesson.
Once you have decided on your system you need to make a commitment to trade this
system exactly as the rules call for. You will need to make a very strong commitment here and
not play any games with yourself. The object of this exercise is to work through any resistance
you may have to following your rules. Taking Call of the signals generated by your system is
the only way you can get the rst hand experience you need to establish a belief in probable
outcomes, and relating the mathematics to the behavior.
After your system takes three or four losses in a row it’s going to be very difcult to put on
a trade generated from the next signal. But you have to do it anyway, in spite of any resistance
to do otherwise. When that next trade turns out to be a winner you will have established a
rst hand understanding of the nature of technical systems and a belief in how you can-an
make money in the long run, if of course you can execute your system properly by acting on
every signal. Owe you establish this belief you will have the force of habit working for you
and the struggle will cease. So while you are working at it, just do the best you can and look
for ways to improve your performance.
What you need to learn by doing this exercise will come much faster if you keep in mind
that it is not going to be easy (at least not for most peopled so be easy on yourself. The more
accepting you are of your mistakes the less fear you will encounter when it comes time to make
the next attempt. If your child was learning how to ride a bike l’m sure you wouldn’t scold him
for failing off and tell him not to try again. You would encourage him Land eventually he’ll learn.
Give yourself the same kind of understand and consideration. What you Dare doing is more
of an exercise in learning trading discipline and the skill of awless Sex execution, which I am
dening as executing a trade immediately upon your perception of an opportunity :(inclusive
within opportunity is the opportunity toxic a losing trade). In the lord run having this Skill is
far more important than your immediate desire to Snake money. So keep your contract size
light. You can always increase it later when you have learned to completely trust yourself to
always do what needs to be done without hesitation. Stay with the exercise until it becomes
second nature or a part of who you are. As you gain in your condence, you will learn more
and consequently learn how to make money as a trader. As you make money you will gain in
your condence. This positive cycle will expand your ability to be successful just as easily as a
negative eye will feed on itself to end in despair.


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