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Losing Streak Probability Calculator

dowboy — Thu, 01 Dec 2011 21:41:51 +0000

Multiple Losing Streak Probability Calculator – Pt1.

Multiple Losing Streak Calculator PDF – Pt1. Downloadable FREE PDF

A Super Traders Testing Tool

All Super Traders trade within a structured framework, one that is coherent with his or her beliefs. [INTERNAL : MIND]

The Super Trader’s trading system is an alignment of his chosen ‘rule set’, his objectives governed by his vision. This is his ‘Real World’ mechanism that can convert his goals & aspirations, into his desired results; tangible monetary (£) gains.[EXTERNAL : BODY]

All trading systems require feedback to improve. All Super Trader’s incorporate a measurable systematic feedback loop. A processes that can monitor, evaluate, modify & develop various aspects of its structure. Various testing tools can be applied to help identify possible weaknesses within a system. One such tool is the
“Multiple Losing Streak Probability Calculator.” [DETACHED : HEART]

It is extremely important to note that one uses this ‘Losing Streak Probability Calculator’ within a conjecture of a ‘Super Trader’s State of Mind.’ A state of mind that is completely aligned & seamlessly congruent by his Beliefs, his Vision, whilst utilising considerable Feedback.

This ‘holarchic model’ culminates into a seamless balanced collective in;
[MIND : BODY : HEART & SPIRIT]

“A Super Trader thinks feels & acts within the realms of PROBABILITIES.” Dow-Boy.

So, your chosen frame of reference whilst using this calculator should predominantly be to consciously focus within the realms of ‘Statistical Probability.’
Trading per say is NOT about ‘Winning’ or ‘Losing.’

Remember: “Trading Is A Game Of Probable Outcomes.”

“Multiple Losing Streak Probability Calculator.” Focus On the P Not The L!

Multiple Losing Streak Probability Calculator:- Technical Note:

My quest in the creation of this calculator was driven by two things.

A lack of accurate reliable data on the WWW. regarding ‘Consecutive Losing Streaks’.
My Bias towards ‘Right Sided Brain Function’, Creativity! I do enjoy the creative process.

The WWW. Lead me into various trading forums, websites & blogs which culminated in frustration in many ways. I won’t elaborate. I had to seek help & ‘custom build’ in order to create a ‘Losing Streak Probability Calculator’ that would provide accurate results.

So, with the help of some very clever coders I was able to bring my idea to life & co-create a spreadsheet for traders relating to losing streak probabilities. I asked one of the coders ‘BruceZ’ if he could (in a not too technical manner) describe how the implementation of his VB code worked within the dynamics of this spreadsheet. I asked this for two reasons.

To give you a broader understanding regarding the ‘Under The Hood‘ dynamics of its programming. Via this higher level of comprehension you can benefit & maximise your utilization of this Losing Streak Probability Spreadsheet.
CONFIDENCE. Confidence is the highest order belief within a Super Traders psychological makeup. It’s only with confidence that one can truly overcome fear. By increasing your knowledge, you increase your faith & confidence in its function & the accuracy of the data that this Multiple Losing Streak Probability Calculator returns; you will in turn have CONFIDENCE to make any necessary changes to your trading system you see fit; having 100% confidence in the calculators returned results.

BruceZ’s Coding Comments:

“Losing Streak Calculator.”
Two functions were written in Visual Basic which work with the Excel spreadsheet to compute the exact probabilities of runs of consecutive losses.

The first, called ProbRun, computes the probability of 1 or more runs of consecutive losses in a given number of trades for a given probability of a loss. This is computed by a recursive difference equation given in the code comments. For each trade, the previously computed probability that a run occurred by the previous trade is added to the probability that a run ended on the current trade multiplied by the probability that no run has occurred earlier.

The second function, called ProbRunMulti, works with the Quick Calc & is used for the matrix to compute the probabilities of multiple runs of consecutive losses within a given number of trades, where each run is separated by 1 or more wins. This also works by a recursive difference equation given in the code comments. In this case, for each trade, the previously computed probability that a given number j or more multiple runs occurred by the previous trade is added to the probability that a run ended on the given trade multiplied by the probability that an exact number j-1 of runs has occurred previously. This final probability is computed by subtracting the probability that j or more runs occurred previously from the probability that j-1 or more runs occurred previously. This requires retaining 2 sets of values for j or more runs, and for j-1 or more runs.

The first routine, ProbRun, conserves memory by implementing a circular array. This means that the amount of memory used does not depend on the number of trades. Instead, the array size will be equal to the run length plus 1, and the number of bytes will be 8 times this since double precision is used. So for a run length of 15, this array will use just 128 bytes.

The second routine, ProbRunMulti, could also have been implemented with a circular array which would have reduced the memory usage to a small fraction of what it currently uses, but it was decided that it was more important to preserve the simplicity and understandability of the code instead, and that the extra memory usage should not present a significant problem. In this case, the array size does depend on the number of trades. The array size is equal to 2*(number of trades + 1) since there are effectively 2 arrays being reused alternately to store retain the two sets of values. This will use 16*(number of trades + 1) bytes, so a million trades would use about 16 megabytes.”

Many Thanks BruceZ for his synopsis; & just to reiterate what BruceZ said; you can find additional comments within the VB code of all the spreadsheets.

Calculator Gallery

Losing Streak Calculator Download Area

Multiple Losing Streak Sheets

“Multiple” Losing Streak Probability Calculator – Excel 2010 (.xlsm)
“Multiple” Losing Streak Probability Calculator – Excel 97-2003 (.xls)

Monte Carlo Simulation Versions

“Monte Carlo” Losing Streak Probability Calculator – Excel 2010 (.xlsm)
“Monte Carlo” Losing Streak Probability Calculator – Excel 97-2003 (.xls)

Mersenne Twister Simulation Versions

“Mersenne Twister” Losing Streak Probability Calculator – Excel 2010 (.xlsm)
“Mersenne Twister” Losing Streak Probability Calculator – Excel 97-2003 (.xls)

ALL In 1 Packs.

All Losing Streak Probability Calculators – For Excel 97-2003 (.xls)
All Losing Streak Probability Calculators – For Excel 2010 (.xlsm)
“The Big 1” – All Losing Streak Probability Calculators – (Excel 97-2003 & Excel 2010)

Trade Example & Questions

Losing Streak Probability Quick Calculator

Hypothetically; one of your day trading strategies generates an entry signal approximately 3 times a day, which equates to 720 trades per trading year (3×5(Mon-Fri) x48 (Trading Weeks A year, Allowing for weekends & Holidays). This strategy has a win rate of 50%.

Question 1: “What is your statistical probability that within this 720(n) Trade run that your system will generate 5 consecutive losing trades in a row?
Do you know?

Question 2: “What is the statistical probability that it will also generate 2,3, or even ‘4 or more’ consecutive losing streaks of 5 trades all within this same (n) trade series length?
Would you like to know?

Well, now you can by using the DTL ‘Multiple Losing Streak Probability Calculator.’

IMPORTANT: Learn HOW To Question!
To get the most out of these spreadsheets you need to understand what questions to ask, & why you are asking them, in other words; “HOW to question.” These spreadsheets return accurate valuable data, a perfect characterisation of the ‘Pareto Principle.’ 90% of their power lies buried within the context & quality of how one questions the data!

A good Question Presupposes a good answer. The “would you like to know?” isn’t a good question; to know just for the sake of knowing. It has no positive effect,
[Internally : MIND] & [Externally : BODY].

So, maybe we should question “Why? Why would I want to know?” “Why am I generating 5 losing streaks more frequently than I should be statistically?” This again isn’t the best question to ask.

To just delve a little deeper here, as this is important & is ingrained deep within the psychological thinking of ALL Super Traders. “Why?” Why is very much associated with a negative attitude & a complaint riddled mindset. “Why did I get stopped out?” “Why did I not follow my rules?” “Why did I sell too soon?” These types of questions indicate a level of thinking that initiate & create a negatively charged neural net; which aid in nurturing damaging & destructive emotional responses.

REMEMBER:

“The words you chose in your questioning go a long way in not just what answers you receive; but in “WHAT YOU BECOME!”

The Question Is HOW?

One of my favourite quotes from Einstein is:

“Problems Cannot Be Solved By The Same Level Of Thinking That Created Them.”

Super Traders & successful individuals evaluate in a positive way, by asking “HOW?”
If you don’t question this way already; then do take this on-board earnestly. It’s hugely significant; a paradigm shift with vast implications.

Asking “HOW?” IS questioning at a higher level than the problem. All Super Traders are happy, content & grateful individuals.

They have learnt to ask “how?” & not “why?”

Again; Please take in the above seriously. It really is a huge key to your success as a trader & in living a truly fulfilling life. How you speak to yourself [INTERNAL : MIND], the words you use & HOW You Question & evaluate everything will determine your results.

Another friend of Einstein; Sir John Wheeler (physicist), famously said;

“The act of us searching, expecting us to see something, will ALWAYS create something for us to see.”

Again, it’s in HOW you question & evaluate. It’s not in how one OBSERVES things; it’s in HOW you PARTICIPATE with these spreadsheets that will determine what types of results & answers you will receive from this creative process.

For now; this concludes Pt1 regarding these “Losing Streak Probability Calculator Spread Sheets.” Later; in Pt2 I’ll discuss various ways in which you can get the most out of these spreadsheets; including:

“HOW to question,”
What kinds of questions you should be asking.
Several examples & different scenarios.

By utilising the above tips & guidelines that I’ll share with you in the coming Part 2, you’ll be able to view the data that these spread sheets reveal from a higher level, a ‘different’ perspective that WILL ensure you get ‘AN EDGE.’

I hope you enjoy using these very useful ‘Losing Probability Spreadsheets’ as much as I’ve enjoyed being a part in their creation.

Many thanks again to: SHG, BruceZ & Duncan Werner for all their help & their contributions in the making of these spreadsheets. Without their help, these sheets would not be here now.

I Thank You All.

“I wish you well in your journey & in your trading.”

DowBoy b.1967 – Written 1st-December-2011
http://www.Daytradinglife.com

A Day Trader’s Goals – 10 Good Reasons

dowboy — Sat, 16 Apr 2011 12:00:41 +0000

GOALS & GOAL CONCEPTS – FOR THE SUPER DAY TRADER.

Day Trading Goals -10 Good Reasons. Downloadable FREE PDF Version.

Pt 1: – Why Do Super Trader’s Use Goals? – Top 10 Reasons.

This; is the 1st part of my ’3 part mini series’ dealing with the subject of goals, goal concepts & the art of goal setting for the Super Day Trader. I like bullet point lists; they seem to be far superior for memory recall than huge paragraphs of text of ‘Shakespearian’ proportions.

So…… Here’s Pt1. Enjoy. Regards; Dow-Boy.

The Trader’s 10R Goal Cycle

Original Goal: (Eventually), We Can Release it.
Past Goal: Is To Reflect; Re-Evaluate; Re-Live It.
Present Goal: We Re-focus; Re-Frame; Re-Align It.
Future Goal: We Will Re-New; Re-Size; Re-Define It.

VISION: They say success is a 2 part process, with part 1 being, ‘You Must Know Exactly What You Want.’ Goals give you the trading vehicle to envision EXACTLY what you want! As the great Stephen Covey So eloquently puts it, One Must; “Begin With The End In Mind.”

INTENTION: We live in reality, yet it is a filtered ‘PERCIEVED REALITY.’ Goals for the Super Trader are used as a lens, shifting one’s ‘Frame Of Reference’ (His Thinking & Awareness) to envision new opportunities, guiding ones’ decisions within a structured ‘INTENTIONAL’ framework via conscious choice.

NOTE: The Important word, Choice. There is age old question “Are Traders Born Or Made?”
ANSWER: Neither! We are all products of choice!

DESIRE: Goals instigate a strategy to achieve a desired result. ‘Goals Come With Desire.’ With desire come goals. The greater your ‘Goal’s Desire,’ the easier it will be to change your old conditioning. Alter your old conditioning & you change your old habits. CHANGE YOUR HABITS, CHANGE YOUR RESULTS! Desire is VERY Important.

PURPOSE: Goals give you a sense of purpose; thereby directing one’s attention to ‘grow one’s awareness; conscious awareness. This relates among other things to the ‘Conscious Competence Learning Model.’

FOCUS: Goals are closely linked to ‘FOCUS.’ What is the most important part in a Super Trader’s Structure, his structure of excellence? ‘THE PROCESS!’ Goals help you to direction your focus (WITH CLARITY) on BEING! Being What?

BEING THE PROCESS OF TRADING!

PERCEPTION: By merely having ‘Goals,’ you instigate a ‘Comparative’ mode, so you can easily evaluate & make rational ‘Value’ judgements regarding your ‘PROCESS & OUTCOME Goals.’ The principle of perception is based on differences. So, what do we need to be able to compare. Start with a goal! All Super Traders quantify & qualify their performance. So all ST’s use goals!
“What’s measured improves!” Peter Drucker

FEEDBACK: Trading involves learning. Learning & improving partly involves repetition which needs considerable feedback. A ‘Super Trader’s Goal System’ always incorporates a ‘Feedback Loop.’

YOU NEED FEEDBACK IN ORDER TO IMPROVE; SO… YOU NEED GOALS!

ACCOUNTABILITY: Having goals & a goal process makes you purposeful, thoughtful rational & systematic. This transcends into the realm of ‘Personal Accountability’ having what is known as an ‘Internal Locus Of Control.’

HABITS FORMING: Goals are part of a ST’s consciously chosen system that helps ‘Reshape’ old negative self-limiting beliefs & habits that could be buried deep within his subconscious. Thus goals aid in the creation & formation of new habits.

QUESTION: What Are Habits?
WHEN THE BODY BECOMES THE MIND!

CHANGE: Goals help you change. It is said (via quantum law) that the environment is an extension of the mind. So importantly; if the World is shaped by our thoughts (potentiality), then ‘INTENTIONALLY’ shaping our destiny via goals & goal setting we will ultimately reshape our conditions & our environment, thus changing the events, circumstances & outcomes.

NEVER UNDERESTIMATE THE TRUE POWER OF GOALS MY FRIENDS!

So, there you have 10 requisite reasons why ALL Super Traders use goals in their trading regime & why they are essential to a Super Trader’s success inside & outside the markets!

“I wish you well in your journey & in your trading.”

DowBoy b.1967 – Written 31st-March-2011
http://www.Daytradinglife.com

My Day Trading Affirmations

dowboy — Sun, 27 Mar 2011 16:03:35 +0000

A Day Traders Affirmations

Day Trading Affirmations. Downloadable FREE PDF Version.

Your Question; “How Does One Get Into The Zone? How Can I Trade In The Zone? ”
After Many Years Of Reading, Searching I Found The Answer To this Question.
Example: Does One Pray To See God? Do Monks Chant To See Their God; Their Buddha?
Answer: It Is Profound If You Understand The Depths Of Its Meaning.
My Answer; “One Prays; Meditates To Create The FEELING For The Connection You Seek!”
A Day Trader Recites His Affirmations To Create The ‘FEELING!’ Altering His State Of Being, Changing It’s Vibratory State, It’s Energy To Enter His Utopian Realm; The ZONE!

DO NOT UNDERESTIMATE THE POWER OF THESE TRADING AFFIRMATIONS.

DAILY DECLARATION OF THESE POSITIVE STATEMENTS WILL AID IN SHIFTING YOU TO A HIGHER STATE OF AWARENESS; ULTIMATELY, A ‘ZONE’ LIKE STATE.

Combine Affirmations With Meditation!

By Combining My Affirmations With A Daily Practice Of Transcendental Meditation, You Will Build A Powerful Pre Market ‘Ritual’ To Gain & Enter The Zone Like State You Seek. Just 20 Minutes Of Daily Transcendental Meditation Is Enough To Turn Your Awareness Within; Thus Gaining:

A Maximum State Of Pure Awareness; Quiet Inner Alertness; Still, Devoid Of Thought & Content.
An Inward State of Reflection That Will Modulate Your Mind Into A Complete State Of Rest.
Obtain Profound Physiological Rest. Your Body Will Simultaneously Gains A State Of Rest At Least 3 times Deeper Than Sleep.
Only Via This State, Can You Nurture & Attain ‘Global EEG Coherence.’ This Development Of Enhanced Brain Behaviour; Enables Coordinated Neurological Coherence. This Allows The Entire Brain To Be Completely Engaged & Function In A Profound, Orderly & Integrated Way.
Scientifically Recognised As A 4th State Of Human Consciousness; It Is Distinct From Waking, Dreaming Or Sleeping. Only With Regular Exposure To This Unique Meditative ‘Innermost,’ State Of Consciousness; This Connection With Pure Unbounded Awareness & It’s Unified Source (The Unified Field), Can The Nurture & Attainment Of ‘Global EEG Coherence’ Be Achieved.

My Trading Vision.

I’m Committed To ‘Trading To Win’, & Become All What I Want To Become.
I Will Do Whatever It Takes To Reach My Objectives, My Goals & My Vision.
I Expand The Internal Space Needed To Succeed Not By Undoing The Past, But By Creating ANew Space, MY VISION!

I Make My Decisions Based On My Commitment To My Consciously Designed Future Vision.
I’m Guided By My Future Vision Only, I Behave In A Way That Will Bring About My Larger Objective, My Vision Of Abundance.
I Know That Within I Have All The Resources I Need, Everything To Reach My Objective.
I See The World & Trading Conveyed Through My Self Expressed, Consciously Chosen Vision.
I’m Creating My Life, Moment By Moment. The Only Paradox Is That The Dimension Of My Vision Is Non Linear; Not Born In The Past Nor Held In The Future; It Lives Always In The NOW!
Because Of My Commitment To My Vision, My Concept Of My Result, I’m Constantly Looking For Evidence Of That Result. Because Of This I Watch The Market In Terms Of These Expectations. Thereby; I Increase The Likelihood Of My Expectations Becoming The Reality I Seek.
Ultimately I Will Become My Vision.

I Trade In The Zone.

‘I Trade In The Zone’. I Trade IN The Moment, IN The Present, With Total Disregard For What Others Think & Feel About Me.
‘I Trade In The Zone’. I Ignore ALL Emotions & Defensive Perspectives. I Trade; I Do, I Act From An Entirely Detached & Impartial Perspective.
‘I Trade In The Zone’. Only In The Zone Do I See The Market As It Truly Is.
‘I Trade In The Zone’. I Block Out ALL Bad Habits & Self-Limiting Beliefs Attained From My Past, My Environment & Their Surrounding Noise.
‘I Trade In The Zone’. My Mind Is Pure, Clear, Focused & Yet Empty. The product Of ‘Choice’ Means I ALWAYS Can; At Will, ‘Trade In The Zone’.
‘I Trade In The Zone’. I Trade Without Ego, Never Reacting To Pain, Sorrow Or Fear. I Just Trade The Market As It Truly Is. I Am A Super Trader, I Am The Master Of My Emotions, & So I Can Trade In The Zone. ‘I TRADE IN THE ZONE’.
‘I Trade In The Zone’. Trading In MY Zone Means I Distinguish Actual Reality From My Interpretations & Projections Of Reality. I Control The Zone!
‘I Trade In The Zone’. Only In The Zone, My Centred State, Can I ‘Super Trade.’ I Flow With Trends, I Spot Reversals & Breakouts; I Cut Losses Without Hesitancy & Let My Profits Run Perpetually. ‘I Trade In The Zone’.
The Zone Is Where I Live; It’s My Nirvana, My Sanctuary, My Paradise, My Heaven.
I LIVE & TRADE In The Zone. The Zone Is In Me; & The Key To Enter Is Within Me Forever!

The Development & Implementation Of My Skills & Trading Strategy Is My Harmonic Satisfaction,
Not In The Attainment Of Profit.
My Enlightenment Is This Self Expression; The Manifest & Cultivation Of My PEACE.

I Day Trade ALWAYS; “Without FEAR, Without HESITATION, Without RESERVATION.”

“I wish you well in your journey & in your trading.”

DowBoy b.1967 – Written 26th-March-2011
http://www.Daytradinglife.com

A Super Trader’s Discipline.

dowboy — Thu, 18 Jun 2009 20:01:21 +0000

The Super Trader ‘Discipline’ PDF.

Super Day Trader Discipline. Downloadable Full PDF Version.

The Disciplined Super Trader.
What Exactly IS Discipline?

Discipline is a HABIT!
All ‘Super Traders’ have self discipline. Without discipline you cannot achieve success, in any field.
I will say this again;

“WITHOUT DISCIPLINE YOU CANNOT ACHIEVE SUCCESS, IN ANY FIELD.”

Having this ability to exert self discipline AT WILL on one’s self is one of the master keys to your success.
Discipline is a mix of Will Power, Persistence & Repetition; having the conviction to do what you must do whether you feel/want to do it or not.

The only difference in discipline between the 95-5; (95% of ordinary (Losing) day traders & the 5% of winning day traders is that if assumed that they both know what they should be doing to achieve consistent success; then only ‘Super Traders’ have the Will & Conviction to do what needs to be done, Repeatedly to achieve this.

This is the price you’ll pay for your success. Your will to do, what you must do, whether you want to or not.
Every action of a S.T’s self discipline strengthens the Habit of his self discipline; his pattern of regular behaviour. Discipline is a HABIT!

The following is THE MOST critical point to remember.

“EXPERIENCE HAS STRUCTURE!”

If you understand that there is a structure & an order within a ‘Super Traders’ repertoire of his trading action, it can be accepted that there MUST be a constant structure & framework being imposed &at work. Discipline is the governor of his structure, a finely balanced mechanism & collective, targeted to cut away anything that is unnecessary to leave a streamlined pre-configured format as to; How One Must Act & Re-Act to anything the market can throw at him.

Leverage: For Fear & Discipline.
‘Super Traders’ understand leverage &are masters in the use of leverage, maximising their performance using various weapons within their arsenal. The main premise to using leverage within the structure of his Trading Universe is in the suppression of his own FEAR.

THE STRONGEST EMOTION OF ALL, FEAR, (FEAR OF A LOSS) CAN BE CONTROLLED.

The Super Trader’s knowledge that he controls his losses ALWAYS via stop loss placements & his position sizing models incorporated within his trading plan means he has a suppressed & controllable level of fear.

His leverage for discipline is achieved via his integration of his pre conceived Goals, Trading Rules & his Large Positive Dominant Vision of purpose. The ‘Super Trader’ is totally focused; aligned by his pre-determined goals, & responsible for his actions via his unequivocal adherence to his clearly defined rules. Yet goal setting & rules are his outer expressions of his self discipline.
These help in the creation & nurturing of his Self-Esteem, another attribute & by-product of his discipline associated to all ‘Super Traders’. All ‘Super Traders’ have a high level of self esteem, a by-product from his total commitment to Self Discipline.

SELF DISCIPLINE BUILDS SELF ESTEEM.
SELF ESTEEM REQUIRES SELF MASTERY.
SELF MASTERY IS SELF DISCIPLINE!

The Ingredients For Discipline.
Strength of character, conviction, persistence, repetition combined with his rules, goals & vision are all directly linked to the Super Traders’ beliefs & preconceived ideas about how the markets function via his experiences. Together, these ingredients form the Super Trader’s Discipline, shaping the Super Trader’s pattern of regular behaviour; now his Trading Universe is a Disciplined Universe.

The Super Trader’s Disciplined Universe.

Let me characterise 1st the ‘Super Trader’s Universe’ to you metaphorically, as there are many similarities & comparables to our own physical Planetary Universe.
For Clarity, let’s state that by definition;

THE SUPER TRADER’S UNIVERSE = “ONE THAT ENCOMPASSES EVERYTHING.”

Our own ‘Physical Universe’ is one that includes & encapsulates all forms of matter, in fact everything that physically exists from energy, momentum & the entirety of space & time; including all the physical laws & constants that govern it. In constant perpetual motion, this is a never ending expanding multi dimensional ‘fabric’ in action.
We can formulate that the Super Trader’s Universe = All The Super Trader’s EXPERIENCES (E),

THE SUPER TRADER’S UNIVERSE = ALL HIS EXPERIENCES. (E)

For it is through all the Super Trader’s Experiences that he defines all his beliefs & internal/external behaviours & emotions.
So if the Super Trader’s ‘perceived’ Universe is equal to the total sum of every experience based & founded upon his beliefs about how the markets function via these experiences & strategies (his behaviours); then his perceived Trading Universe’s ‘Gravity’ (G) must surely be the 1st four ingredients that make up his Discipline; IE, Strength of character, conviction , persistence & repetition.
Gravity or gravitation is a natural phenomenon by which objects of mass attract one another. This ‘Gravity’ IS the driving force behind the Super Trader’s DISCIPLINE. For it is this (G) which is responsible for holding everything in place, thus keeping his Universe’s structure proportional yet interwoven by its force of attraction, securing & protecting its mechanism, one designed & intended to realise constant profits.

WITHOUT DISCIPLINE THE SUPER TRADER’S UNIVERSE CANNOT EXIST.

(G)The Super Trader’s Gravity = (will power +conviction+ persistence +repetition).

If these ingredients are equal to ‘Gravity’ in our Super Trader’s Universe, then ‘Relativity,’(R) the phenomenon which is principally concerned with the large-scale effects of gravitation & governs motion & inertia, must be attributed to our Super Trader’s other ‘Ingredients’;
those of his Preconceived Goals, Trading Rules & Large Positive Dominant Vision.

All These elements must co-exist with one another, their combined force & energy causing change, influencing & affecting our Super Trader’s behaviour. Collectively these 3 ingredients are the governors of his Discipline.

(R)The Super Trader’s Relativity = (Pre-conceived Goals +Trading Rules + Large Positive Dominant Vision).

We can now formulate all the above as follows: ( Note: ⊇ means ‘every element of ).

Formula: (D) = (G) x (R) ⊇ (E)
Discipline = (character + conviction + persistence + repetition) x (Goals + Rules + Vision) ? Experience.

To Summarise:
Through Discipline, we can define our actions. The more disciplined you are, the more positive your outcomes & actions will be; leading to more positive attached feelings & emotions. This ultimately positively & permanently reshapes our beliefs, in turn altering the charge & total sum of our experiences.

The Super Traders Universe & our own Physical Universe contain many parallels & similarities yet both hide infinite secrets & mysteries to taunt & tease us. Some may never be solved & some yet to be discovered.

The Super Trader sees every trading day, his trading arena through his inner beliefs, gained from his experiences.
A Trader’s Universe IS a Disciplined Universe. The presence of Discipline is essential to realise a constant & ever increasing flow of profits. It’s the key force that has the power to reshape his beliefs, alter his experiences in a positive way & ultimately manifest his pre envisioned utopian destiny.

A SUPER TRADERS UNIVERSE IS A DISCIPLINED UNIVERSE.

“I Wish You Well In Your Journey & In Your Trading.”

DowBoy b.1967 – Written 17th-July-2009

Meditation Part 2 – HOW

dowboy — Mon, 20 Apr 2009 20:31:35 +0000

How Do Super Traders Meditate? Downloadable Full PDF Version.

Meditation For Traders – Pt2- How?
How Super Traders Meditate.

When The Surface Of A Lake Is Still, One Can See To The Very Bottom Very Clearly. This Is Impossible When The Surface Is Agitated By Wave. In The Same Way, When The Mind Is Still, With No Thoughts Of Desires, You Can See The “SELF.”

Swami Sivananda. (Indian Yoga master, Monk , 1887-1963)

How To Meditate – The internal concentration of the mind.

Meditate to a regular schedule. Regulate the time, place & practice of your meditation.
Regularity conditions the mind to slow down its activities with a minimum of delay.
Best time to meditate; early dawn or dusk if feasible.

‘DAILY PRACTICE WILL SOON TURN INTO HABIT.’

1. 1st Concentrate.
The mental ability to concentrate is inherent in all; all of us have the ability to shut out thoughts.

2. Position Your Body.
Sit in a steady, comfortable cross-legged position. If this is uncomfortable, sit on a chair, both feet on the floor, hands resting gently on your thighs, neck erect but not tense.

3. Close Your Eyes.

4. Calming The Mind.
Now we must calm the mind. By turning your mind’s concentration inward, upon the self, you can deepen the experience sort, that of perfect concentration. This IS the state of meditation.

5. Focus.
Focus solely on your breathing. Through focusing on your breathing you forget all your concerns & enter the calming state you seek.

Continue To Read More On How Super Traders Meditate

6. Breathing.

Consciously regulate your breath. Inhale through your nose, exhale through your mouth.
Begin with 2-3 minutes of deep abdominal breathing to bring oxygen to the brain.
Focus on the passage of air through your nose & into your lungs.
Focus on the expansion of your chest & your belly area.
Now, slow it down, breathing regularly into a calm & smoothing rhythm.

7. Focus 2 – Centering.
Now it’s time to focus on other areas of the body.
IN THIS ORDER:
Right Hand, Left Hand, Face then Head, Neck, Shoulders, Chest, Stomach, Legs, Ankles.

With your eyes closed, breathe in & tense the focal area, (Right Hand 1st) tightening the muscles. Hold for a few moments. Then, breathe out & relax muscles in the focal area.

Whilst feeling the release of tension, notice how different this feels from tension.

Before moving onto the next area of focus tell yourself; “My right hand & arm feel relaxed & calm.” Vividly picture this sequence via a firmly held image, deeply partnered with concentration.

NOTE: * When you meditate, a lot of thoughts, body sensations & external noises will try to alter your thinking & focus. Reject these distractions, be strong & command your mind to focus only on your breathing or the focal area you have chosen.

Continue this process until you have completed the list of all the necessary areas of your body. With practice, you can reach a ‘super conscious’ state. You can learn through this introspection process to control your mind. Your mind is what makes everything work. All ‘Super Traders’ ‘OWN’ a calm & steady mind.

‘Learn To Control Your Thoughts, Learn The Power Of Focus & Concentration. This IS meditation.’

“Finite experience, which is measured in terms of past, present & future, cannot be transcendental.
Concepts of time are illusory, for they have no permanence.
The present, immeasurably small & fleeting, cannot be grasped.
Past & future are non-existent in the present.
We live in illusion.
The meditative state transcends all such limitations. In it there is neither past nor future, but only the consciousness of “I am” in the eternal NOW.
It is only possible when all mental modifications are stilled.”

Swami Sivananda. (Indian Yoga master, Physician, Monk , 1887-1963)

“I wish you well in your journey & in your trading.”

DowBoy b.1967 – Written 12th-April-2009

Meditation Part1 – Why Meditate?

dowboy — Fri, 10 Apr 2009 21:34:41 +0000

Why Do Super Traders Meditate? Downloadable Full PDF Version.

Meditation For Traders – Pt1- Why?
Why Super Traders Meditate.

To be able to duplicate the ‘Super Traders’ nirvana state of trading, ‘The Zone’ one has to create an inner calming state. Through daily meditation practice, this CAN be achieved. It’s a learned skill with the quality of your results being attributed via the mother of all learning, ‘Repetition’ & in proportion (Ω) to your level of intensity of focus. Meditation is an important piece in the ‘Super Traders’repertoire.

‘Super Traders’ are ‘Solution Orientated,’ able to approach all tasks in a systematic & methodical manner. Meditation (Part of the ‘ST Blueprint’, is a solution to prepare, centre & align oneself to enter ‘The Zone.’
The polymath ‘Super Trader’ always is seeking an ‘Edge.’ Most traders are intelligent & motivated yet fail to achieve success. Meditation is a MUST & part of the edge you seek. Maintaining a ‘continuous’ meditation regime WILL help to maintain that ‘Edge!’

‘DO NOT Underestimate The power of meditation.’

It is scientifically proven that within a state of calm, thoughts & thinking processes can be accessed much quicker. Your mind can be brought under perfect control by the regular practice of meditation.

You WILL develop & increase your capacity to Focus.
You WILL improve your Concentration.
You WILL be able to make better Decisions.
You WILL be able to make quicker Decisions.
You WILL be able to make more rational Decisions.
You WILL be more Alert.
You WILL be more Observant.

Continue To Read More On Why Super Traders Meditate
During meditation all intellectual thought is temporarily bypassed with external forces & distractions also being consciously suppressed. A self understanding; being self aware is an introspective activity. For the ‘Super Trader’ once within this meditative state, his thinking relates only to the object he is focusing on or the process of focusing itself.
Being in a relaxed state makes you ‘more’ rather than less alert. Via meditation (learning to relax) you will create a condition of ‘Restful Alertness’, a foundation block in the building of the new YOU & a key element in the ‘Super Traders’ armoury. In effect, meditation will reshape your mind, aiding in the processing of all information.
Repetition of Meditation will lead to pure thought.
WARNING: Shaping your mind is a 2 part process. Through mediation you help create the perfect state in which one can trade
(Part1 – creating a great trading mind environment).
Yet; ‘Knowing How To Use What You Have Created’ Is The Part 2.’ Also view: How‘Super Traders’ Meditate.

REMEMBER:

‘All Super Traders Have Learnt How To Think & Act In A Certain Way. Through Constant Meditation, You Can Cross The Line & Step Into The ‘ST Zone.’

What is the ‘primary’ purpose of a meditative state? It is to develop & condition your ability to focus, this enables the ‘Super Trader’ to command & take effective control of ‘their’ emotions at will.

‘If 95% Of Traders Lose & Trade On Emotion, Then DON’T! Trade With Other People’s Emotions Not Yours. That Is The Secret. Losers Trade With Emotion; Winners (St’s) Trade Their Emotions!’

Through consistency & practice, you will learn to take control of your emotions via the aid of meditation.

REMEMBER:

‘It’s Not What’s Going On Around You But What Is Going On Within You That Will Determine Your Trading Results.’

“I wish you well in your journey & in your trading.”

DowBoy b.1967 – Written 28th-March-2009

Super Trader Declaration Card

dowboy — Sat, 21 Mar 2009 22:02:50 +0000

Super-Trader-Declaration-Card Downloadable Full PDF Version.

Super Trader Declaration Card
I have created this; a ‘Super Trader Declaration Card,’ in a standard business card size, it’s dimensions being: (8.5cm by 5.5cm).
Feel free to download the PDF Version, then print & cut out these declaration cards. Carry them with you where ever you go. You can alter, edit, amend as you see fit to ‘personalise’ your S.T. Declaration Cards, as no two traders’ goals & future visions will be one & the same. That said; my created ‘Super Trader Declaration Card’ is a great start, & will help you create your inner environment via mental conditioning.

‘TO CHANGE THE VISIBLE, YOU MUST 1ST CHANGE THE INVISIBLE!’

Declarations are one way in which to ‘Condition’ the mind. ‘You are NOT your mind.’ You are much much bigger than your mind. You choose your thoughts. You have the power to control your mind. The mind is no more than an extension of your body; as your hand, foot or ear all are.

‘YOU CONTROL YOUR MIND.’

To become a great Trader one must learn to think & act a certain way. Using a ‘Super Trader Declaration Card’ is one way in gaining an edge & keeping a positive mental attitude & clearly focused thought process that will bring you into alignment with your trading ambitions.

Important:

This is a very power technique to help you accelerate in the direction & attainment of your goals & your vision. Please, DO NOT under estimate the power of ‘Affirmations/Declarations.’

Declarations

dowboy — Wed, 11 Mar 2009 22:26:18 +0000

Declarations.

Declarations-Masters-In-Emotion. Downloadable Full PDF Version.

Master’s of Emotion – Declarations

‘Super Traders’ are the Masters & controllers of their Emotions. One of their techniques to obtain & maintain an edge in the trading arena is via the daily practice & use of Declarations.
Declarations are an OFFICIAL INTENTION to take all the necessary ACTIONS to make your future vision become reality.

IMPORTANT: Declarations are NOT affirmations! The difference is slight, but powerful.

AFFIRMATION: An affirmation is; ‘a positive statement asserting that a goal you wish to achieve is already happening as if it is true now.’
DECLARATION: A declaration is; ‘to state an official intention to undertake a particular course of action or adopt a particular status.’

Often we can affirm something that is NOT already happening & is NOT yet real. Our subconscious minds, our ‘inner self ’ will recognise this as a ‘trick’, as it is NOT yet true & react in a negative way.
Whereas, a declaration is saying, we have an INTENTION of doing or being something. This our inner self CAN ‘buy’, because we are not stating it is true now, but it’s your intention for the future.

2 VERY IMPORTANT WORDS:

OFFICIAL & ACTION!

A declaration ‘IS’ official. It is a formal statement into the universe & throughout your body.
A declaration ‘MUST’ be action orientated! You must take all the necessary actions to make your official intention a reality.

Find out HOW TO use ‘Declarations’ to your advantage; as ‘Super Traders’ do, to give yourself an edge……read more

PLEASE NOTE: Whilst at 1st declarations may seem a bit ‘unnatural’ or a ‘weird’ thing to do;

THEY WORK! If most of the greatest minds that have ever lived employ these practices into their daily regimes; then so should you. You have nothing to lose & everything to gain!

HOW TO:
* Written techniques: These work as a sort of muscle memory for your subconscious.
* Spoken techniques: Are designed to focus on the words; the repetition of hearing them out loud can be as if someone else is telling it to you. You can also recite with additional emotion of voice.
* Declaration Card: Is physical via ‘Touch.’ If you cannot take the card out to read you can still ‘Feel’ it in your pocket & repeat the declarations in your head as if you were reading them. The card serves as a trigger for repetition.

MOST IMPORTANT: YOU MUST LEARN YOUR LIST!

Things To Do:

1. Write out your own declarations.

2. State them aloud.

3. State them before commencing your trading & after your meditation.

4. State them before you go to bed.

5. Type or write your declarations (All or top 3) on a card & read the card whenever you can.

Below I’ll list my declarations which I perform every day. Feel free to add/delete & adjust the declarations to best suit you.

My Trading Vision

1. I’m committed to trading, to win, & become all what I want to become.
2. I will do whatever it takes to reach my objectives, my goals & my vision.
3. I expand the internal space needed to succeed not by undoing the past, but by creating a new space, MY VISION!
4. I make my decisions based on my commitment to this; my consciously designed future vision.
5. I’m guided by my future vision only, I behave in a way that will bring about my larger objective, Knowing that within I have all the resources I need.
6. I see the world & trading through my vision.
7. I’m creating my life, moment by moment.
8. Ultimately I will become my vision.

“I wish you well in your journey & in your trading.”

DowBoy b.1967 – Written 12th-July-2008

Super Day Trader – Mind Map

dowboy — Wed, 25 Feb 2009 08:34:33 +0000

Welcome to DayTradingLife.com A website dedicated to help you become a Super Trader.
We think in pictures. This is a well known fact.
Below I have created a Super Trader Blueprint; “A Structure of Excellence.”

These are the attributes of a Super Trader. I will elaborate on this ‘Day Trader’s Mind Map’ throughout my Day Trading Blog, focusing on each area in greater detail, attaching documents that can be viewed and downloaded for your convenience. These will uncover and reveal what it takes to become a Super Trader. And yes,,, you to can become a Super Trader (S.T.) ……

“IT IS A LEARNED SKILL.”

“YOU TO CAN BECOME A SUPER TRADER.”

I hope this ‘Super Day Trader Mind Map’ helps you. By clearly and pictorially breaking down all the main key areas into visible chunks, it will aid and assist, giving you a direction and reference, penultimately helping you create the mindset that you seek to win this game and overcome your inner battle with your self limiting beliefs and master your emotions.

Download: Super Trader Mind Map PDF

******************MAJOR UPDATE!!***************** *******************UPDATED TO v3.02 (18-03-10)

Super Trader Mind Map Revised.
New Revised ‘Post Trade System’ To Reflect A Super Trader’s ‘Goal Orientated’ Approach, Including ‘EQ’ Emotional Behaviour – ‘Character Goal’ Reviews.

Reference To Dr. Van Tharp’s ‘Position Sizing’™ Now Inserted Into ‘Money Management’ Category.

The Strongest Emotion Of All? Usually Stated As FEAR,,But The Strongest Emotion Is ‘CONFIDENCE’ (Now Added To STMM), For It Is Only ‘CONFIDENCE’ That Can Over Come FEAR.

All Super Trader’s Trade In A ‘Perceived Universe.’ ‘Perception Based On One’s
‘MEMORY’,
‘ATTITUDE’,
‘BELIEFS’,
& ‘VALUES.’ (Now Added To STMM).

All Super Trader’s Are ‘Future Orientated’, This In Part Involves ‘Mental Rehersal’
(Now Added To STMM).

Part Of A ST’s ‘Confidence’ Lies In His ‘Resilience.’
(His Ability To Bounce Back From Setbacks/Losses etc) (Now Added To STMM).

All ST’s Have A Burning ‘Desire’, By Products Of One’s Motivation & Commitment.
(Now Added To STMM).
**********ALL SUPER TRADERS ‘TRADE IN THE ZONE’**********
Awareness & Consciousness Added To Reflect The Epitome Of All Super Traders.

Dow Boy – 18th March 2010

*NEW-UPDATED v2.03 (25-04-09)

Super Trader Mind Map PDF Now Includes Updated Hyper Links To:-

Day-Trading-Quotations
&
Why-Do-Super-Traders-Meditate?.
&
How-Do-Super-Traders-Meditate?. All FREE Downloadable PDF Versions.

Dow Boy – 25th April 2009

*NEW-UPDATED v1.01 (26-02-09)

Includes-Hyper linked Downloadable PDF, ‘Super Traders Are Visionaries.’ All categories and sub-categories within this Super Trader Mind Map PDF will (in time) have corresponding downloadable material expanding on the categories related to it’s subject matter.

I thank you for stopping by my Day Trading Blog / Website.

‘I wish you well in your journey & in your trading.’

Dow Boy – 25th February 2009