Yesterday was the most interesting class at the range in the last year and a half. Not because it was the last class before I move to another country, but because of the exercise we practiced for an hour and a half. It required an absolute sense of awareness with one’s technique, feeling and positioning, but it required something else. It required one to go against temptation.
The Exercise
After doing our usual warmup, we moved to our traditional 18m (60 ft.) distance, but had to shoot with a twist. Normally when we shoot, we actually start off with our eyes closed. We move through the first three steps of the position with our eyes completely closed so we direct all our attention to our positioning. Then we open our eyes to gather our aim on the target, and with the final pull of the cord, we release the arrow.
This time we did the same, except after we gathered our aim, instead of keeping our eyes open and focused on the target, we closed them again. We would pull the cord (with eyes open) till the arrow was about 1-2cm from activating the clicker (which measures the distance of the arrow pulled so we have the exact same pulling distance). This had to be done with complete feeling. But once we got there, we closed our eyes, and continued with the pull until the clicker fell and it was time to release. Why?
The answer has to do with temptation. When one is shooting, even though our eyes are normally closed for the first 3 out of 4 positions, once they open, and focus on the target, there is a natural temptation to relax our energy from the position/technique, and focus on the target. This often causes us to lose awareness of our bodily alignment that can have a tremendous impact on the release, flight and ultimately, the arrows impact on the target.
Remember, when shooting from 18m (60 ft.), any adjustments so much as a quarter of a cm could cause the arrow to move several inches off the target. This could happen in the hand that is holding the bow, the hand which releases the arrow, the back elbow’s alignment with the front gripping hand, or a number of other subtleties in the archers posture. In other words, any slight adjustment has huge implications. This is why archery is a precision sport.
Why Does This Happen?
70% of all the data our central nervous system takes in is through our eyes. This is the reason our maestro had us close our eyes for the first three segments of our positioning, so that our energy and focus, which often leaves our body when the eyes are open, stays completely centered in our body and alignment.
What also happens (and far more critical), is when we open our eyes, we tend to naturally focus on the target and loosen our awareness where it should be – not on the target, but right where we stand.
This exercise was completely designed to be a reminder of where our attention and awareness should always be. With our eyes closed, instead of our energy following the arrow, and leaving our body at the moment of release, it stayed with us completely. It was monitoring our follow-through, the expansion of the arms, and the relaxing of the bow. But far more importantly, it kept us focused instead of falling into the natural temptation of looking at the target. The practice of archery is really not just one of precision, but one of going against temptation.
How Does This Relate to Trading?
In trading, there are more temptations then there is in archery. The promise of working from home, having no boss, making more money than ever before, not having to follow a dress code, or show up when someone tells us, or work the way they want us to, go on vacation when we want, buy the things we never could before, to be financially free. There are massive temptations in trading and the list is endless. Trading – like archery, is a practice of going against one’s temptations.
There is another critical way archery and trading come together. When we are trading, it is ever so easy to relax our focus on what we are doing, and become focused (almost enchanted) with the target. With every new win, increased wealth is a possibility. Push a few buttons of the mouse and we can be richer than we were before.
However, when we relax our focus and concentration, we increase the probability for errors and losses.
How?
Hopefully, if you are trading, you have a system which is rule-based so there is no confusion about what is a valid signal, when to get in, where to take profit and where to put your stop. Assuming you do, then all you have to do is follow your rules. But how many people do this? How many people abandon their trading plan when executing or are in the middle of a trade? Let me know if these examples sound familiar;
-You took a trade that was not a part of your system
-You did not use the proper risk management and over-leveraged
-You were watching your balance instead of what the market was doing
-You were thinking of what you can do with your profits instead of trading your system
-You adjusted your stop before you were supposed to
-You increased your stop when the trade went against you
-Assumed the success/failure of the trade by the first few pips movement after your entry
-You took profit before reaching your systems target
-You closed the trade in fear or emotion instead of what the charts were telling you
Do any of these things above sound familiar? Have you ever done any of these things? If so, do not worry, as these are the traditional mistakes of a developing trader and you are in large company. But, if you have been doing these things and still are, it is pointing to something specific like the head of an arrow.
It is pointing to how you are losing focus before and during the trade. It is pointing to how you are focused on the target and not following a technique. It means your awareness has left you with the trade, like the arrow heading towards the target. Trading – like archery, is learning to go against one’s temptation. Trading – like archery, is a precision endeavor.
At all times, work to be focused on only three things; 1 ) trading your plan, 2) trading your system, and 3) keeping your eye on the markets, and not the targets (balance checking, profit checking, how close you are to your limit). By doing this, you short-circuit the opportunities for your emotions to steer you off course. By doing this, you eliminate the moments temptation can affect your trading for the worse. By doing this, you build the habits of successful and professional traders. Trading takes discipline and it is a skill based endeavor.
Luckily, skill is a drill and something that can be learned. Just make sure you are not drilling in the habits which take your focus, which keep the eye of your mind on the wrong target. Follow the three things you should be focused on, and your trading will take flight. You will become more disciplined, diligent, and build the right mentality. You will make less mistakes, and find greater consistency. When this happens, you will be well on your way to becoming a successful trader.
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Also, make sure to check out another great article on the topic called Willingness, Responsibility and Ownership in Trading.
Tag Archive for: trading lessons
Yesterday was my first day back at the range in a week. I had some problems with my shoulder so was resting it, but yesterday it felt better. Even though I’ve been shooting for over a year now and won two competitions, there is still a lot of work to do.
I was shooting decently consistent to start off yesterday…scoring a 10 (perfect), a 9 (in the gold center) and an 8 (red – one level off from the gold center) for every 3 shots (round) from 18m which = 60ft.
My pulling shoulder which used to be out of alignment (too high) was now at the proper level, but my back elbow was not totally inline with my front gripping hand. I started to make some adjustments but still the same result…10, 9, 8. I began to wonder what am I doing that is off?
Just then the instructor Diego pulls me aside and tells me next round we’ll go back to 3m target as he wants me to work on something. At first, it was discouraging to my ego being moved to the smaller target. But, I’m committed to learning the art of archery so instead of worrying about looking good shooting at the 18m, I was happy to go back and practice some basics.
Although most of my technique was correct, I was missing two things;
1) After my shot, I forgot the rhythm to close my eyes for 3 seconds while holding the bow
2) I had put too much of my energy on the target and not the process
The first one was relatively easy to change as it require a physical adjustment. However, the second one needed an internal adjustment, one that was more subtle and had no outer reference for me to gauge.
After three rounds, I was keeping my eyes closed and back in the rhythm, but far more importantly, my energy was focused where it needed to be – on the process and not the target.
I went back to 18m and started shooting. The whole time I was using my energy on the process and forgot about the target. After 3 arrows, I shot a 10, 9, 9. Even though the result was a slight improvement, there was something else going on. My awareness was where it needed to be. I was totally focused on the process and not the result, and thus doing all the things I needed to make a good shot.
How Does This Relate to Trading?
In trading more so than archery, there is a temptation which can distract you from the process. It is called money. Most people learning to trade do not have all the money they need so the temptation to be distracted is enormous. You look at your charts and see the EURUSD moving 150pips in the last few hours or the GBPUSD moving 400pips in the last two days, or all the flashing lights and what do you think?
‘Wow, I could have traded that and made $$$‘. Or you think, ‘Whoa, that pair is moving, I should get in that‘. Or, ‘Wow, if I had put 10 instead of 5 lots, I would have made double the money‘.
Sound familiar? If it does, your not alone and most traders go through this process. But herein lies the trick, which is the same in Archery.
It is easy to be more focused on the target and not the process (following your trade plan & rules, using proper risk management and being disciplined). It is more convenient to not follow your trading plan and make some quick pips then to follow it completely no matter what is going on in the markets.
Everyday I have tons of traders like yourself that come to me saying ‘I want to do this for a living‘ but when it comes down to it, many do not follow the system, or the risk management rules, or the trading plan. It is because they are so focused on the target and forget about the process.
Trading for a Bank
Speaking of trading for a living, do you know what it takes to trade for a bank?
4,000 trades. Yep, that is right – 4,000. Why? Because banks want to make sure their traders are trading their system as is, and the best way to do it is drill it over and over again. They have a lot of money on the line and they want to make sure before trading their money, you know what your doing to the point it is habit. This can only be done if you are focused on the process in the beginning.
Your Training as a Trader is not finding the best system out there, but in learning how to master the process. How do you do that? By being fully focused on what you are doing every time you make a trade. By doing this, your thinking or emotions never get a chance to interfere with your trading and decision making.
Have you ever had a great trade setup but didn’t take it out of fear (emotion)? Or have you ever got in a really good trending move, only to exit early before your system because you ‘thought’ it was going to turn around? Has this ever happened to you? If so, it is a direct communication where your focus is (on the target, not on the process).
As in Archery, so in Trading
When you are trading, ask yourself where is your focus? On the target and money to be made? Or on the process (using correct risk management, following your system, executing the technique). Keep your focus on the process until it is drilled inside your head so deeply, there is nothing left but the discipline and you executing according to plan. Skill is a drill and all highly successful traders have drilled their skills through the hammer of the training process.
Lastly, if something is not going right with your trading, do not feel it is a setback to go trade smaller lot sizes or go back to demo. I often have to go back to the 3m distance to work on various aspects of my technique. Once they are back in sync, I go back to the 18m. You can do the same with trading by going back to demo for a month or so, and once the results improve, go back to live trading. Quit thinking about the money you have to make right now and focus on the process. When you do, you will find you are hitting the target with more consistency then ever.
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For a really good article on Discipline and the mental aspects of trading, check out this great article on Trading Lessons from Jesse Livermore – the World’s Greatest Trader.
And for those looking to take their trading to the next level and work with me as your mentor, make sure to check out our Online Courses where you will learn the same systems I use daily along with having a chance to communicate directly with me to help you build your own trading plan.