tradersmentality

The Art of the Flow

NYSE:ACB   None
The Art of the Flow

Anyone who has been in the trading world for very long has heard you must "flow" with the market. Many people say it, but do they actually understand what it means? Can they truly accomplish this in the market or are they just speaking figuratively? Anyone can look at a chart and say "do this or that" or X happened because of Y, or say "I would do this in that situation." This is all hypothetical, and means absolutely nothing!

There is a reason why intellectuals or really smart people cannot make money in the markets. And that is because they think. They think they have to know. They think about this or that, and attempt to understand what prices are likely to do before it happens. In reality all that matters is what you do, the actions you take in the market. And the best actions do not require thought. In other words, the ability to flow with the market is what separates the winners from the contributes.

The truth is, it is very hard to flow with the market. Our minds and thoughts are constantly fighting our actions. Internal struggle prevents us from being able to accomplish the necessary goal of flowing with the market. Emotions, fears, and pain prevent us from taking the best action at the right time.

A Professional Trader seems to always know exactly what to do, and when to do it. He seems to enter and exit at the best possible times. But how? Is it because he can predict the future of prices? Does he have a better understanding of price action than everyone else? This helps sure, but is not the true answer.

The reason he is able to do so is due to a special talent, but it has nothing to do with predicting price movements. It is his ability to act by doing what the market instructs him to do, without giving it any thought whatsoever. He does not resist the market, nor does he become fixated on what should or shouldn't be happening. He simply responds. Like when someone throws a ball at your face; you do not think "I should move my head" you just move your head to prevent from being hit with the ball!

A Professional Trader knows there is a lot more to trading than being able to understand what prices are doing or might do at any given time. Of course he must understand price action and price tendencies. But he only uses this as a tool of understanding markets. He knows the key is within his mind, and keeping it clear and free of clutter in order to always stay with the market.

He keeps his mind clear like a window, not a stained piece of glass. He sees the market and world for what it is. He does not see the world through a stain of what he wants, or how he thinks it ought to be. He works on cleansing his mind and thoughts of the internal fight and outward fight of resisting the market. He focuses on taking actions he believes is correct based on what the market tells him - and he is often right and therefore rewarded.

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