As of 09/27/2022
  Indus: 29,135 -125.82 -0.4%  
  Trans: 12,153 +153.95 +1.3%  
  Utils: 934 -19.25 -2.0%  
  Nasdaq: 10,830 +26.58 +0.2%  
  S&P 500: 3,647 -7.75 -0.2%  
YTD
-19.8%  
-26.2%  
-4.7%  
-30.8%  
-23.5%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/27/2022
  Indus: 29,135 -125.82 -0.4%  
  Trans: 12,153 +153.95 +1.3%  
  Utils: 934 -19.25 -2.0%  
  Nasdaq: 10,830 +26.58 +0.2%  
  S&P 500: 3,647 -7.75 -0.2%  
YTD
-19.8%  
-26.2%  
-4.7%  
-30.8%  
-23.5%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

Bulkowski on The Centered Trader

Are You a Centered Trader?

Are you a centered trader, one that lets emotions flow by without reacting, focused only on the trade? Let’s find out by taking this quiz.

  1. Do you feel your trading lacks discipline (do you consistently follow your rules)?
  2. Have you developed a reluctance to trade the market, perhaps because of recent losses?
  3. Do you set specific goals for each trade which you fail to meet?
  4. Does the fear of loss sway your trading decisions in any way?
  5. Have you increased your position size to recoup money from a failed trade?
  6. Are you overly eager to make a trade, perhaps because of a big win, because you need the money, or for the adrenaline boost?
  7. Do distractions interfere with your trading?
  8. Do you look for excuses or try to rationalize a failed trade?

Count the number of "No" answers and "Yes" answers.

Answering "No" to all of these questions means you should check yourself for a pulse. You may be dead. Look for a defibrillator.smile

Answering "Yes" to all of these questions means you are really screwed up, and this article is for you.

If you answered "Yes" to some, but not all, of the questions, then that means you are a member of the human race. Congratulation! However, you still have issues. Let's deal with those now.

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What is a Centered Trader?"

A centered trader is someone who has learned to recognize and deal with the sequence of emotional events caused by stressful trades, losing trades, or even winning ones. Typical emotional responses by an uncentered trader are:

A centered trader focuses on the trade and lets thoughts about self-doubt or self-criticism pass without interaction. They have learned to turn down the volume on such thoughts and just watch the chart to see how the trade unfolds. They don’t ask, "Do you think I can make it as a trader? Can people really make a steady income doing this?" They understand that trading is a business and losses are the cost of doing business. A centered trader has learned to take emotions out of trading. How? Experience has taught them how to react calmly to every situation. Another word for experience is practice.

When Captain Sully lost thrust from both engines after a bird strike, his airplane turned into a rock with wings, but as a certified glider pilot (according one source that consulted FAA records), his training allowed him to pilot the craft to a safe landing on the Hudson river. Your trading should be as professional and as calm as Sully was when flying the Airbus.

How do you become a centered trader?

This article was based on an idea from Technical Analysis of Stocks & Commodities magazine, February 1995 issue by Ari Kiev, titled, "Centered Trading."

-- Thomas Bulkowski

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See Also

 

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My novels:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book

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