Lesson 19 the daily tasks of master traders Welcome to Lesson 19. My name is Sam ADA. I'm a global macro Currency Trader, in the owner of FX renew calm. This is the advanced forex course for smart traders. market was Bo Lipschitz said the really best traders don't think twice about how many hours they're working, or whether they came in on a weekend. There's no substitute for that level of commitment.
Becoming a top trader is a journey. There are years of struggle and hard work ahead for most aspiring traders. You'll get your butt kicked by the market again and again. Most likely just after you thought you had finally got it. And it's only through Doggett determination and sheer willpower that will eventually get you to your goal. But the good news is, it's a battle you can win.
And when you do the carrot is a big one. In this lesson we review it daily trading routine defined by van Tharp is a 12 top tasks of trading. Military philosopher sunsoo said most battles are won before they are started in the preparation phase, and trading is no different. Here you will learn how to combine and condense what you have learned throughout this course and two action steps that you can follow each day to lead you to trading success. Please note I have borrowed the topic of this article with permission from van Tharp and apply that specifically to forex trading. I view the subject matter as essential to effective trading.
Any mistakes or omissions are of course my own. Mark was advan. top seed the daily tasks fit the metaphor of a hunter predator in a warrior How the daily tasks were developed. Fan top is considered an expert model. Throughout his career, he has isolated the common denominators of success across a broad range of trading styles. This has led him to develop a mental map of the daily activities of master traders.
After these traders were not consciously realize what they were doing to be successful. They would get up eat, trade, eat, sleep, etc, as far as they were concerned. But through careful prodding and observation, Van eventually learned the things they did differently from other traders. These tabs should form a daily routine that applies to all traders no matter the currency, pair or timeframe. Long term traders are not excused, though it does not necessarily need to be a daily affair for you. Those who monitor trades once a week might conduct this process once a week for example.
Top task one self analysis your performance is achieved It is a direct reflection of your level of self mastery. The more aware you are, the greater your ability to perform in a challenging market environment. overly emotional arrogant traders struggle with their consistency in the markets. They tend to make mistakes and miss opportunities that may come your way. In contrast, a self aware trader exists in the present moment, free from fear and greed. And a way a trader is able to make decisions with an open mind.
The trading day should start with an assessment of your trading state. This could be a period of introspection or meditation, we focus inwardly and notice what is going on internally. It could be a self rating process, and what you rank yourself out of seven. If you're either too low or too high, you may want to meditate until you are in a more liberal state. Ideally, you want to be around a five top tasks to mental rehearsal as the market throws a variety of circumstances. That you can be very helpful to mentally rehearse yourself performing perfectly when you trade.
Traders should visualize themselves. following the rules quarterly income can be helpful to take into consideration any upcoming news for the following day. It is also beneficial to rehearse your contingency plans from lesson 14. Top task three, focus and intention. Top traders have a razor sharp focus on those activities that lead to the achievement of the goals. For peak performance, it's critical that traders take a moment to re orientate themselves towards their goals and set a positive intention for what they want to achieve from the day's trading.
It's often when traders lose sight of their objectives, their mistakes creep in and they tend to cut the winners short or let their losses run based on market noise. In addition, a positive intention triggers that negativity and Lions the subconscious mind with what you plan to achieve top task for developing a low risk idea. Many traders confuse market analysis with developing a low risk idea. They spend lots of time and energy, analyzing the market then trying to fit the market into the preconceived notions. Fan top calls this building a straw house, it gives a try to comfort avoids the important issues. The concept of developing a low risk idea provides a lens or a framework around market analysis that is more useful to the trader.
Your time analyzing the market has one sole purpose to find low risk opportunities to make money. It's not about being right. Nor is it about some pretty lines on a chart. There's one market wizards said trading is not a bullshit fantasy world. When you develop a low risk idea you are looking for opportunities to place a trade congruent with your position size. model, you're looking for a desirable risk reward, preferably three to one or greater, though this will depend on your trading timeframe.
Dr. Thorpe divides this task into three main sub tasks, gathering data creative brainstorming, determining risk reward. gathering data involves getting information from charts, fundamentals or other sources. Creative brainstorm is about looking for a variant prescription from the data. Determining risk reward is firstly about understanding the opportunity that exists. And secondly about working out if a plan can be implemented to capitalize upon the idea in a favorable manner. top top five stalking.
Once you develop a low risk idea you want to act like a hunter stalking your prey. Good traders don't jump right in. Instead they wait for the optimal time to enter when the odds are most in their favor. The correct mindset for Talking is calm, detached and objective. It is highly important that you are in flow with the market and sensitive to meaningful inputs and Q's. Top task six action once your conditions for entry have been made, it is time to enter the trade.
Traders who have trouble pulling the trigger will be experiencing difficulty with this step. The stocking state of mind is very different from the state of mind needed to take action and this transition can be difficult for some traders. Taking action requires decisiveness and commitment and any sort of seeking guessing or affliction is inappropriate. top top seven monitoring I have noticed that the monitoring phase is one that many folks try to struggle with their lack a clear plan that includes enough options to handle changing market can This leads him to either wait for the position to hit the stop loss or profit target, or they exit out of the trade based on an emotional response to market noise. Instead, the master trader carefully monitors the position as it moves towards the objective. Van Tharp suggests that monitoring is broken down into two types, overview monitoring and detailed monitoring.
Overview monitoring is when the trader steps back and takes a big picture view of his position. Data monitoring occurs when at times you should zero in your focus on the position. When you first get in, you want to make sure that the trade does what you expect, and you may quickly choose to get out of the market reverses after your entry. You might want to conduct detailed monitoring when there is an opportunity to add to your possession of the price approaches a pre planned exit point. There are also certain rescue events that you might want to pay particular attention to. Top task eight aborting, the abort task is when you either exit out of a position that is moving against you.
Always circumstances have changed. Your decision about where to exit will be either pre planned or arise from the monitoring phase. It's we execute your risk control by cutting losses. Top task nine take profits. Many traders spend most of their focus on entry and not when to exit. This means they end up with not as much profit as they should from their winning positions.
Before you enter into a trade, you should know your profit potential. With this in mind, you should have a number of roles in place that give you the best opportunity to achieve or exceed that profit potential for managing risk and adapting to changes in market conditions. Task 10 daily debriefing. Daily debriefing facilitates two things. They allow the trader to note any mistakes they've made. In order to avoid making them again.
They allow the trader to create a record of what works for them in the market, which they can review to develop the trading systems and processes. A daily debriefing doesn't need to be a time consuming process. It might be as simple as spending five to 10 minutes writing in your trading journal, or it could involve more in depth, retrospection top task 11 be grateful for what went right. The practice of giving thanks is a later addition to van stop tasks of trading. Van spent a lot of time keeping a journal of the issues he faced every day in order to clear them. While this can be useful to do after some time, he realized that he was spinning matchers energy finding problems so that they could be cleared.
Instead he started to look for the blessings in his life. What gradually happened was Lightning of a spirit. He started to ask traders to apply this practice each day when they traded to dramatic effect. Whether it is the law of attraction and action was simply an excellent method of staying humble, it is a good way to shift the trader state of mind to the positive. Whichever way it works is important for the top traders retain. Top task 12 periodic review as the markets change, so do you.
By conducting an objective review of both the appropriateness of your trading roles and yourself, you ensure that you adapt to an ever changing market environment. While the periodic review is not conducted daily, that is listed by van as one of the core tasks of top traders, you should establish a routine that allows you to sit back and take an objective look at what you do, depending on how frequently you trade. The more you trade, the more often you need to complete the review process. As we come to the pointy end of this course, you'll be standing To integrate everything you've learned into cohesive action steps for you to take every day that you trade. My hope is that now you can see how each lesson fits together, and how they all work together in the daily tasks to generate wealth on the markets. By following the 12 top tasks, you're applying the daily practices of master traders.
Master traders don't just know the markets, they know themselves. They know precisely how each and every part of their personality comes together to produce results. They know when they're in the zone, and more importantly, they know how to get there when they're not. By rigorously applying the daily tasks of top traders, you're taking proven steps that will get you from where you are to where you want to be. These are exciting times by learning about the markets and yourself, you can start to become an anti new trader. Are you really to trade with the discipline that will allow you to draw wealth from the markets that could change your life and Sexton's coursework, your outline how you will follow the top tasks I'll see you in the final lesson.