Fri 7 Nov 2008
The Nature of Focus II
Posted by ray under Psychology
Tonight, continuing from yesterday’s blog, I want first to look at the elements of ‘relaxed’ focus.
We start by asking: in trading what causes our anxiety? The answer is our emotional response to price action. If we view price action as a threat rather than as a source of information, anxiety arises, and we lose our relaxed focus. On the other hand, if we perceive the market as providing information - ‘it’s time to exit a losing position’, then we have a choice of whether to act or not to act. Once we do this, we are able to plan our responses to the adverse price action.
So the first element of relaxed focus is to remain in the ‘here and now’. Be cognizant of what the market is telling you about this moment and not what happened ‘x’ days ago. One way of remaining in the ‘here and now’ is to focus on rhythmic breathing. It’s near impossible to think about ‘what happened…days’ when we are concentrating on..’breathe in for 10, hold for 5, exhale for 7′.
The next element is to remain open and honest about the information generated by the market. Treat the information as an opportunity to act or not to act. We honestly accept and interpret any information that we perceive adversely affects our position.
Finally treat wins and losses as a learning opportunity; learn whatever you can, then forgive (in the case of a loss), forget and move on.
So, how does relaxed focus lead to purposeful action? Focus requires an object of focus. In trading, I’d suggest this is our trading philosophy. Sure we have trading goals; but they in turn are merely vehicles by which our trading philosophy is expressed. Before each trade. I run through my 3 maxims (protection - execution - returns) and ask: Does this trade qualify?
November 7th, 2008 at 7:42 pm
Ray
Since you speak of rhythmic breathing, may I advocate the practice of Pilates.
Pilates, pronounced -Pilatiz- is a physical fitness system developed in the early 20th century by Joseph Pilates in Germany.
The program focuses on the core postural muscles which help keep the body balanced and which are essential to providing support for the spine.
Joseph Pilates believed in circulating the blood so that it could awaken all the cells in the body and carry away the wastes related to fatigue. For the blood to do its work properly, it has to be charged with oxygen and purged of waste gases through proper breathing.
Pilates called the very large group of muscles in the center of the body – the “powerhouse.” All energy for Pilates exercises is said to begin from the powerhouse or core and flow outward to the limbs.
The goal is for this precision to eventually become second nature, and carry over into everyday life as grace and economy of movement.
I have taken up this practice under the guidance of a practitioner at my Gym. Voila, now I feel I can overcome any stress with this ‘rhythmic breathing exercise’ and function more effectively.
Damai Spa:
http://singapore.grand.hyatt.com/hyatt/pure/spas/index.jsp?_requestid=334515