You must overcome stress if you are to have the emotional consistency that is required while trading.
Mindfulness will help you do this by focusing your mind on what really matters while trading: the information that the market is providing.
It does this by concentrating your mind on what is happening at the very moment when you need to make decisions.
This avoids making decisions on the basis of fears or hopes about what might happen in the future or what happened in the past.
You have no control over what the market will do in the future. Your decision is whether you want to be a part of what happens.
And you certainly can do nothing about what happened in the past other than review it and learn from it.
Take Time Out
You can also use mindfulness to improve your general mental state to make you more receptive to information and help you move on from trades that don’t work out.
You do this by getting rid of any stress you may be feeling.
One way to get rid of stress is to avoid the source of the stress. But just how practical is this?
With mindfulness you don’t rid of the source, you accept it.
You see the person, event or situation for what it is. They simply exist in the world or happened in the past.
You embrace this reality.
You also accept that the stress you feel is your mental reaction to this reality.
This you can control. This is what you need to change.
A Useful Exercise to Overcome Stress
Dr. Mark Bertin, the author of Mindful Parenting for ADHD, has put together some simple exercises to help stressed parents to use mindfulness to deal with their situation.
The audio link below guides one such exercise.
Find a comfortable place to lie or to sit and when you are ready just click on this link. The audio runs for a little under 18 minutes.
Afterwards, take few moments to notice how to feel having completed the exercise and perhaps note the dominant sensations or thoughts that occurred to you during the meditation.
This exercise was not created with trading in mind. Instead the author was dealing with one of the most stressful situations that parents might encounter.
However, you will see that it parallels one of the audio exercises included on my free introductory course for traders.
My course concentrates more on helping you to accept the outcomes of bad trades rather than people, but I think you will see the connections.