There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Friday, August 10, 2012


Visualization can help us very effectively to reach our trading goals.I have written an earlier post that fantasizing about our future success will do more harm than good.(Read ). People  think mentally simulating an outcome will help them to reach the goal. Wrong

But another kind of Visualization  can be very helpful in achieving our goals. Visualize the process through which the end goal can be achieved rather than the end state of achieving it.Thinking about the process will help us to focus and identify potential problems and probable solutions.

Vtsualisation is nothing but mental practice. Mental practice is as good as real practice,because our mind interprets reality and imagined things similarly and both strengthen and reinforce our  neural pathway.By practicing something in mind, we are effectively increasing our training time.

As I am still working and not a full time day trader, my screen time experience is very little. I have compensated for this through effective visualisation of my trading process on historical charts. I have done this on a thousand charts at least.I just open the historical chart and walk through it bar by bar, paying attention to the locations, patterns and trade setups.This has helped me a lot to streamline my thought process during live market..
Choose the behavior we want while trading and use mental practice to reinforce it through visualization.


  1. ST - You r right - Sports psychology uses imagery for confidence and performance under stress. Both mind and body can be conditioned to actually perform the skills or scenarios imagined. It is one more step on the way to automaticity.


  2. Raghu

    No substitute for practice.
    It will take a very long time to achieve it in real market.So no other way but to simulate. Earlier I have done it on historical charts. Now doing bar by bar replay on Amibroker. I have 1M data from 2007.

    Video in my earlier post was recorded while doing this.


    1. Hi ST,
      Where can I find this video please?



  3. Have around 6 weeks of data from TradeTiger - for walk through simulation. Sitting in front of the screen, one is tempted to preempt DP's, and other restraints in the hope that this time it is different. Visualisation excercises can help in staying put.

    Really admire SS in taking decisions under RT conditions. Must have already automated/internalised the methods.



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