The author is a SEBI Registered Research Analyst (INH000004796) and a NISM certificate holder in Equity Derivatives Market. The certification is provided by National Institute of Securities Markets.

Follow by Email

Sunday, January 19, 2014

Mental Rehearsal for trading

Hi all,

Over the weekend I was going through a book named, Psycho- Cybernetics.

In the few topics which I have gone through, the mention of self-image is very prominent. It says that even if we have the best of circumstances and the best of everything, we will only succeed to the limit of our self image.

Our self image is created by the thoughts which we hold in our minds by hearsay, experience, what elders have told us and the like. 

It says that if we want to improve, we need to improve our self image, what we think of ourselves.

The topics emphasize the need of holding mental picture of ourself in our mind's eye.

It says "Picture yourself vividly as defeated and that alone will make victory impossible. Picture yourself vividly as winning and that alone will contribute immeasurably to success. Great living starts with a picture, held in your imagination"

The mental picture has to as detailed and vivid as possible while rehearsing and action has to be taken on it.

It says that the human nervous system cannot tell the difference between an 'actual' experience and an experience imagined vividly and in detail.

If we can apply the same concept for trading, and rehearse in our mind's eye the trades which we want to take, I would be very interested to see if we can actually raise the bar and perform at the next level.


  1. TBP

    "Plan your trade and trade your plan" does not mean doing homework burning midnight oil. It is all about visualizing your trades projecting price move into future.

    Here is what I do. Just identify the Decision points above and below the current price. If price is moving up I focus on the DP above and think about what can happen there. BO,TST, BOF or BPB ?
    I am well prepared before price hits a DP taking into consideration all aspects like trend, SCORE etc.. I will have some bias but I am ready to change it in a second as price action unfolds. I take action as per my read of the market and if I am wrong will exit without any second thought and hesitation.
    Only problem is maintaining the level of focus through out the trading hours.

    Trading is not rocket science or brain surgery


  2. This comment has been removed by the author.

    1. ST

      Thanks for the lucid but powerful comment.
      I think we r really lucky that we need not perform brain surgery or launch rockets.
      Do u visualize ur trades Often?
      how has it helped u??