TRADING PSYCHOLOGY NEWSLETTER: The Master Trader -The online source for Applied Trading Psychology for every trader.

Welcome to the twenty-ninth issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

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PLAYING MIND GAMES THAT HELP YOU WIN:
The Phenomenon and Principles of Suggestion
by Gary A. Beale, Ph.D.

The power of suggestion is an integral part of many of the methods and strategies used in Applied Trading Psychology. For example, many of the tips for building an effective mental rehearsal that were presented in the last three articles rely on techniques of suggestion for maximum effectiveness.

Suggestion can be defined as the uncritical acceptance of an idea. Because relaxation heightens the susceptibility to suggestion it is often paired with the use of suggestion. There are four types of suggestion:

An example of Intraverbal communication is the use of emphatic vocal inflection to hold the attention of the listener. Conversely, speaking in a monotone tends to cause attention to wonder and put the listener to sleep. My mentor, Dr. William Kroger, would often illustrate the value of the use of extraverbal communication by pointing out that extraverbal communication is more apt to reduce criticalness. For example, the harsh command "Stand up!" is likely to produce resistance. If however you softly ask, "Aren't you tired of setting down?" and at the same time gesture to stand up, the chances are greater that the listener will stand up.

In practical terms what this means is that if you want to maximize compliance with a productive, responsible suggestion and thereby increase the potential for success you would speak to yourself, or others, using modulated, verbal suggestions that were accompanied by gestures, and/or smiling, and questions that were likely to reduce criticalness.

There are Three "Principles of Suggestion" that are also important to the use of suggestion as a tool for helping you achieve your goals:

Repetitive TV and radio commercials that effect shopping behavior are examples of the Law Of Concentrated Attention. If you have ever tried your hardest to recall someone's name and could not, you have run up against the Law of Reversed Effect. If you have ever been having a good time and imminent danger became apparent you probably noticed how rapidly and completely the stronger emotion of danger displaced the former. Like skiing down a slope at high speed and having a great time until you lose your balance, go out of control and head for the trees!

The next article will offer some practical examples of how the phenomenon and principals of suggestion are used to assist and facilitate the achievement of Trading goals.

Are you working hard to achieve Trading goals? You can get a sample set of draft Trading affirmations, that use the power of suggestion, by clicking here and completing and submitting the form that will appear.

Welcome to the thirtieth issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

To be removed from this mailing list, please click here.

PLAYING MIND GAMES THAT HELP YOU WIN:
The Phenomenon and Principles of Suggestion:
Part II
by Gary A. Beale, Ph.D.

Self-talk is a form of suggestion. The words, sentences and dialogs that go on inside our heads exert a powerful influence on our behavior through the power of suggestion. Read the following article by Dr. Carole Kunkle-Miller and see if you can tell which of the three Principles of Suggestion (The Laws of Concentrated Attention, Reversed Effect and Dominant Effect) come into play. The superscript numbers (^{1, 2, & 3}) correspond to the appropriate laws that are listed at the end of the article.

In my work with athletes, both professional and recreational, I have found that the most challenging obstacle they face is themselves, in particular their minds. For some reason, most of us are quite critical of ourselves. We quickly conclude that we are not tall enough, thin enough, fast enough, strong enough...the list goes on and on. One positive aspect of this perfectionism is that we push ourselves to achieve. However, more often, I see the negative side, which is the mental beating we give ourselves when we miss a play or we do not perform to our potential. You can see the anger and frustration on a player's face; you can read it in his/her body language. Watch what you say to yourself, as your body responds to what information the brain feeds it. For example, I remember one professional athlete who always told himself "Don't get nervous".¹ Little did he realize that his brain ignored the word DON'T, and only heard the word, NERVOUS. And guess what, he became so nervous, that he missed important shots. He was feeding his mind negative thoughts and as the saying goes, garbage in, and garbage out.

Dr. Kunkle-Miller is a Sports Psychologist and Personal Performance Coach. Visit her website, www.lifelinecoach.com, for more articles, her newsletter and other resources for becoming your best.

¹Law of Reversed Effect- the harder you try to will yourself to do something, the less chance you have to succeed.

²Law of Dominant Effect - a strong emotion tends to replace a weaker one. Attaching a strong emotion to a suggestion tends to make the suggestion more effective.

³Law of Concentrated Attention - whenever attention is concentrated on an idea over and over again, the idea tends to spontaneously realize itself.

Welcome to the thirty-first issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

To be removed from this mailing list, please click here.

PLAYING MIND GAMES THAT HELP YOU WIN:
Improving Your Concentration
by Gary A. Beale, Ph.D.

Focus and concentration are key skills that are essential to successful trading. Focus or concentration, like many other Applied Trading Psychology Skills, is a cognitive ability that can be trained.

E. F. Gauron first developed the following exercise but I have added a few minor modifications to make the process of training more effective. This exercise sequence can be practiced as a single exercise or broken into parts. Like relaxation exercises these exercises should be practiced while reclining or seated in a comfortable position.

I. Begin by focusing on your breathing as you breath normally and you slowly count to 200. Then begin to breath more slowly and deeply while keeping your upper body relaxed and you slowly count to 100. Switch back and fourth between normal breaths and deep breaths until you are comfortable with the deep breaths and they feel natural.

II. Continue to breath deeply and begin to focus your attention on each sound that you hear. Silently identify each sound. Next begin to direct you attention to all of the sounds without identify each one that you hear. Allow your self-talk about the sounds to fade away and try to attend to such things as the quality, tempo and pitch.

III. Direct you attention to your body. Non-verbally name each sensation you experience and focus on the quality and location of each feeling.

IV. Now shift your attention to the natural ebb and flow of your emotions and self-talk. Remain calm and focused by breathing more slowly and deeply if unsettling thoughts occur. Experience each emotion one at a time. Next empty your mind of all emotions and self-talk. If you are unable to do this concentrate on a single emotion or word and maintain your focus on it.

V. Open your eyes and choose a distant focal point that is directly within your gaze like a spot on the ceiling or wall. Attempt to identify at once the objects within the room, and your peripheral vision, while looking straight ahead. Now narrow your vision again until the only object you are aware of is the distant focal point. Once again zoom your focus to the entire room within your peripheral vision. Move your focus in and out for at least three repetitions.

VI. To end the training session gently close your eyes and count slowly backwards from ten to one. Upon reaching one say an appropriate positive affirmation. For example, "Alert, refreshed, in control and in perfect health!"

The Personalized Mental Strength Training Programs that I design for many of my clients incorporate the essential elements of this exercise in the form of Guided Scenes and Images. Most clients who have experienced both think that Guided Scenes or Images are much more fun, more natural and far less demanding. Email me at or give me a call at 808.488.3389 for more information.

FROM BRAIN TO MUSCLE WITHOUT ANY TUSSLE
The On-Line Newsletter of the Sierra Center for Peak Performance

Welcome to the thirty-second issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

To be removed from this mailing list, please click here.

PLAYING MIND GAMES THAT HELP YOU WIN:
Improving Your Concentration: Part II
by Gary A. Beale, Ph.D.

Here is another exercise for improving your concentration. This exercise was developed by D. V. Harris and B. L. Harris and first written about in their book "The Athlete's Guide to Sport Psychology: Mental Skills for Physical People". The object of this exercise is to scan the grid and put a mark through as many numbers in sequence as possible in a one-minute period of time. Start with the number 00.

84	27	51	78	59	52	13	85	61	55
33	29	57	31	90	97	04	92	60	28
32	96	65	39	80	77	49	86	18	70
00	88	46	01	81	98	95	71	87	76
48	82	89	47	35	17	10	42	62	34
56	69	94	72	43	07	93	11	44	67
53	79	05	22	54	74	58	14	91	02
40	20	66	41	15	26	75	99	68	06
50	09	64	08	38	30	36	45	83	24
03	73	21	23	16	37	25	19	12	63

Good levels of concentration are indicated by the ability to score in the upper 20s and low 30s within a one-minute period of time. After initial practice you can increase the difficulty of the exercise by including distractions such as a friend attempting to talk with you or make load and unexpected noises, and other intrusive maneuvers excluding touching, while you do the exercise. You can use the same form several times by simply starting at the highest number achieved on the last trail. You can develop new grids by relocating the numbers.

Practice this concentration exercise at least three times a week for four weeks and let me know if it helps to improve your concentration and ability to stay "In the Moment" and focused on the task at hand. Email me at here or give me a call at 808.488.3389 for more information and other suggestions for training concentration and focus.

FROM BRAIN TO MUSCLE WITHOUT ANY TUSSLE
The On-Line Newsletter of the Sierra Center for Peak Performance

Welcome to the thirty-third issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

To be removed from this mailing list, please click here.

PLAYING MIND GAMES THAT HELP YOU WIN:
Improving Your Concentration: Part III
by Gary A. Beale, Ph.D.

The ability to focus and concentrate with undivided attention is a basic skill that every trader must master if maximum productivity is a primary goal. Here are a few more techniques that you can use to help you improve your concentration. Andrea Schmid and Erik Peper describe the first two techniques in the first edition of "Applied Sport Psychology" which is edited by Jean M. Williams. In each case I have included embellishments that I have found make the exercises more effective.

Timed Practice - Sit comfortably and quietly in a darkened room that is free from distraction. Close your eyes and take three deep, "belly breaths". (Inhale slowly through your nose as you force your belly out. Hold your breath for several seconds and then exhale slowly through your mouth as you draw your stomach back in.) See how long you can focus on a single thought.

Object-Focused Attention - Sit comfortably and quietly in darkened room that is free from distraction. Illuminate a photo, object or word related to trading with a desk lamp or similar source of focused light. Concentrate in the object. If distracting thoughts or feelings occur, gently bring your attention back to the object. Do not attempt to shut out the thoughts or feelings as you would if you were using "Though-Stopping". Just gently bring your attention back to the object.

These exercises should be practiced for about five minutes each day. Keep a record of how long you can maintain focus on a single thought or object and chart your progress. With daily practice you should be able to gradually increase the amount of time you spend that is free from distraction.

Guided Imagery - Use a tape recorder, or other similar device, to record a non-trading related narrative such as a walk along the beach at sunset. The narrative should contain detailed descriptions of what you would most likely experience through all five of your senses. You should include everything that you would see, hear, smell, taste and touch. Record the narrative in a monotone with few inflections of your voice. Sit in the same darkened room as described above, close your eyes, take three deep, belly breaths and play the recording. Attempt to maintain concentration on the narrative. If your mind wonders or distractions occur open your eyes turn the recording off and gently redirect your attention back to the point in the narrative where focus was lost. When you are back at that point, turn on the tape again, close your eyes and continue. Daily practice will significantly increase your ability to concentrate without internal distraction.

I have found that Guided Imagery is a very powerful tool for the training of concentration and use it extensively in my creation of Cognitive Training Programs for Traders. Please click here and send me a message if you would like more information about Guided Imagery or any of the concentration building tools that I have discussed in this newsletter.

FROM BRAIN TO MUSCLE WITHOUT ANY TUSSLE
The On-Line Newsletter of the Sierra Center for Peak Performance

Welcome to the thirty-fourth issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

To be removed from this mailing list, please click here.

PLAYING MIND GAMES THAT HELP YOU WIN:
Functional vs. Dysfunctional Thinking
by Gary A. Beale, Ph.D.

Sport Psychologist Dr. Don Greene has suggested that the last thought a competitor has prior to the competition will be reflected in the performance. A more fundamental way of approaching this truism is to say that negative or dysfunctional thinking tends to produce negative or dysfunctional results while functional or positive thinking tends to produce positive results. This is true for both athletes and traders. Dr. Greene has suggested that there are three styles of thinking that competitors can experience in stressful situations (annotated below for traders):

Process thinking and self-talk allow you to focus on the task at hand in functional ways that reduce stress, anxiety and tension rather than increase it. Process thinking is the most appropriate and functional form of self-talk because it significantly increases your potential for performing at your best. While you can't control the outcome you can control your thinking. Establish functional patterns of process thinking and self-talk with Mental Rehearsal, Affirmations and Thought-Stopping. Think "Process" and allow more positive outcomes to take care of themselves.

Process Thinking is a skill. You can master Process Thinking and enhance your potential for more consistent performance at the top of your game. Learn more about how you can do this by clicking here.

FROM BRAIN TO MUSCLE WITHOUT ANY TUSSLE
The On-Line Newsletter of the Sierra Center for Peak Performance

Welcome to the thirty-fifth issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

To be removed from this mailing list, please click here.

PLAYING MIND GAMES THAT HELP YOU WIN:
Enhancing Your Functional Thinking Skills
by Gary A. Beale, Ph.D.

In trading, and life, negative or dysfunctional thinking tends to produce negative or dysfunctional results while functional or positive thinking tends to produce positive results. Process thinking is the most appropriate and functional form of thinking because it significantly increases your potential for performing at your best. While you can't control the outcome you can control or shape your thinking.

For most of us establishing a habit of functional thinking requires both cognitive and behavior change. I have found that traders, and others, can change their thinking and habits by doing the following:

You can begin to master the Art of Process Thinking by taking the following preliminary steps:

Simply stated a Process Goal is a goal that describes the means by which an Outcome is achieved. For example, an Outcome Goal might be "To have more productive trading days." and a Process Goal for this outcome might be "To plan more effectively".

There are at least three action steps that must be taken to achieve the desired outcome. For example to plan more effectively; you may need to (1) Plan each hour of your day in an Appointment Calendar; (2) Set aside at least three hours per week of preparation and planning time and (3) Stick to your schedule.

You now have a Process Goal and three Action Steps that lead to its achievement. Now you need a plan to implement the Action Steps. In this example the plan might be to set your weekly schedule each Sunday afternoon and to review your schedule when you awaken each morning and at the end of each day. Your plan can now be redefined as Action Steps such as (4) Prepare your weekly schedule on Sunday afternoons and (5) Review/revise your schedule each morning and evening

Affirmations are brief, direct, positive statements that affirm the achievement of goals, action steps and plans. The following sample affirmations were developed from the process goal, action step and plan outlined above:

Setting goals, defining action steps, establishing a plan and writing affirmations are the first steps down the pathway to more functional thinking. My next articles will outline how you can keep the journey moving forward.

FROM BRAIN TO MUSCLE WITHOUT ANY TUSSLE
The On-Line Newsletter of the Sierra Center for Peak Performance

Welcome to the thirty-sixth issue of the free newsletter of Applied Trading Psychology. It is our intention to provide short, easily read articles on Applied Trading Psychology to a select list of persons with an expressed interest in the psychological aspects of trading. We hope to encourage an exchange of ideas and we seek to expand understanding of the basic concepts of Applied Trading Psychology among those persons with a desire to enhance professional performance with appropriate and responsible techniques and methods. Your comments, suggestions and questions are strongly encouraged.

To be removed from this mailing list, please click here.

PLAYING MIND GAMES THAT HELP YOU WIN:
Enhancing Your Functional Thinking Skills:
Part II: Creating a Daily Plan
by Gary A. Beale, Ph.D.

Because not enough time to get everything done one of the most frequent concerns traders mention and because concerns about time can reduce functional thinking, this article is focused on a planning technique associated with better Time Management as a key to Process Thinking.

I. Make a Master Schedule

One of the best methods of using time effectively is to plan when you will do specific professional, social, recreational and family tasks. It is important to note that specific professional tasks should be directly related to one or more of the professional goals that you have created. It is also important to keep in mind that planning does not have to mean following a rigid, inflexible, monotonous schedule. Good planning means making thoughtful, intelligent and timely decisions about when it is easiest and most efficient and effective to get things done. Good time management should result in working smarter, not necessarily harder, and a good time plan is the key.

The purpose of the Master Schedule is to get a realistic picture of how many hours are available. Your Master Schedule should include other non-professional activities that are important and shouldn't be sacrificed in order to have more time for trading. A Master Schedule should help you build work periods around other important tasks and activities.

Using a standard Appointment Calendar, like the Weekly-Minder, or something similar, make a timetable of all of your activities that occur at the same time each week. These activities should include work, family and church activities, sleep, meals, traveling time, etc., but not trading time. It is important to be realistic about how long these activities take. For example, leave at least seven to eight hours a night for sleep and give yourself an hour for lunch and dinner, so you will have time to relax, socialize, or run errands as well as eat. This is not a recommendation to create a plan to eat while you do other things. This is a recommendation to leave enough time to eat and then do other things if needed. Once this master timetable is complete, make a copy for each day or the week in each month of the year.

Setting goals, defining action steps, establishing a plan, writing affirmations and good time management are the first steps down the pathway to more functional thinking. My next articles will outline how you can keep the journey moving forward.

84	27	51	78	59	52	13	85	61	55
33	29	57	31	90	97	04	92	60	28
32	96	65	39	80	77	49	86	18	70
00	88	46	01	81	98	95	71	87	76
48	82	89	47	35	17	10	42	62	34
56	69	94	72	43	07	93	11	44	67
53	79	05	22	54	74	58	14	91	02
40	20	66	41	15	26	75	99	68	06
50	09	64	08	38	30	36	45	83	24
03	73	21	23	16	37	25	19	12	63

84	27	51	78	59	52	13	85	61	55
33	29	57	31	90	97	04	92	60	28
32	96	65	39	80	77	49	86	18	70
00	88	46	01	81	98	95	71	87	76
48	82	89	47	35	17	10	42	62	34
56	69	94	72	43	07	93	11	44	67
53	79	05	22	54	74	58	14	91	02
40	20	66	41	15	26	75	99	68	06
50	09	64	08	38	30	36	45	83	24
03	73	21	23	16	37	25	19	12	63

84	27	51	78	59	52	13	85	61	55
33	29	57	31	90	97	04	92	60	28
32	96	65	39	80	77	49	86	18	70
00	88	46	01	81	98	95	71	87	76
48	82	89	47	35	17	10	42	62	34
56	69	94	72	43	07	93	11	44	67
53	79	05	22	54	74	58	14	91	02
40	20	66	41	15	26	75	99	68	06
50	09	64	08	38	30	36	45	83	24
03	73	21	23	16	37	25	19	12	63