Have you ever had one of those moments where you notice that you no longer notice something? In a sport, it usually happens when you find yourself in the zone, performing at your peak, seemingly without effort – and then you realize that you don’t have to think about what you’re doing. You just do it. Sorry, I couldn’t resist the Nike quote.
In trading, you’re in the zone when your money management, trade entries and exits are so automatic that you don’t even think about it. After the trade, you might not even remember specifically adjusting your position (this is why you should keep a trading journal).
This level of trading marks a skilled trader. It makes trading easier, more efficient, more rewarding and more fun.
This level of trading also benefits you when stress rises a bit.. Pilots learn that whether everything’s going fine or there’s a problem, the order of priority is to fly the plane (aviate), then figure out where you are (navigate) and finally talk to the ground (communicate). It’s true for traders, too. Our first priority is to “aviate” – that is, to trade well making sure all of our stops are in place and in line with our trading plan. Then we have to figure out where we are in our trade (navigate) and adjust it according. “Aviate and Navigate” are very important, but paying attention to your trading first helps avoid problems and prevents them from escalating if they occur.
Like any skill, trading becomes polished and refined with experience. But also like any skill, you can accelerate the process through directed efforts and actually trading. So get out there, develop a trading plan with money management that gives you and, edge, and start trading the plan. Practice makes perfect.