Dear Goal-Diggers; today we decided to give a free give-away for one of our popular audio files. The brain-wave entertainment audio file includes affirmations and suggestions to keep trading commitments calmly.  It is alpha frequencies using binaural beats and that is also something you can apply in your everyday life. All you need to do is comment below with your email-address and we will have the file sent to you within the next 24-hours. Let us help you reach your peak.

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Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations. The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous day’s high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels.

An emotional pivot is a distinct turning point in your internal emotional experience. The strongest points are those that have moved the person from a somewhat emotionally balanced state to going up in feeling intensity. These emotions could include for example anger, excitement, greed, fear, anxiety, impatience or on the other hand sadness, guilt, boredom, humiliation, dejection and/or rejection. Quite often emotional pivots become activated firstly by an event (the trader sees the signal on his charts; for instance that the price action had just pierced the supply zone – or resistance). This gets his attention and he immediately asks himself three questions that he and you always ask in the presence of an event (although mostly unconscious). Those questions are 1. What is it? In this case it was a signal that required him to enter a trade. 2. What does it mean to me? Here it meant that he would by necessity be putting himself at risk – thereby initiating the emotional turning point bringing in anxiety and fear. 3. What am I going to do about it? He may become so anxious and fearful about putting his account at risk and possibly being wrong that he does nothing, which would result in a missed trade.

Another event associated in the same sequence might be internal (for instance, making internal pictures of what someone looks like when they are losing – which could be caused by missing the trade). Again the trader unconsciously asks three questions (these same questions are asked every time someone experiences an event. 1. What is it? The “it” here refers to the picture that the trader conjured in his mind of a loser since he has missed a trade due to a lack of follow-through. 2. What does it mean to me? Here the interpretation of seeing a picture of what it looks like to be loser means to him that he is that loser? 3. What am I going to do about it? In this case he assumes the posture of the internal picture effectively making it a reality that he (in his mind) is a loser, a failure, and can’t follow his plan.

A third event might follow, as is often the case during a trading session, and it could also be internal (he might notice that he was feeling angry, irritated, and stressed). As indicated in the above, whenever an event happens you ask those same three “mostly unconscious” questions. 1. What is it? Here the trader recognizes that he is feeling worse, no doubt brought on by what he is internally telling himself (an unconscious conversation); for instance, “…This happens every time.” 2. What does it mean to me? In this instance his meaning is confirmation that he is a failure; why else would he feel such negative emotions. (Of course, this meaning is only in the trader’s mind, it is another example of what he is telling himself).   3. What am I going to do about it? In these types of scenarios, if you were this trader, you might find yourself sulking and missing other high probability set-ups or taking an impulsive revenge trade, adding to poor results. Either example does not bode well for your trading results.

You’ll want to find out as much about your emotional pivots as you can. They are usually your first signal that you are in hot water (with a trade or otherwise). This signal is often a feeling; like a tension headache, butterflies in your stomach, anxiety, fear and so on. When you get that event or internal signal that something is not right; then ask yourself this additional question. “What must I be telling myself or believing to feel this way?” This is a very important question that helps you to begin to identify the impetus for the bad feelings; that is, the unconscious conversation. You can then do something about it. Once you identify the faulty internal data you can start to change it. Remember that thoughts prompt emotions, emotions drive behavior and behavior delivers results.

Just like on a chart with price action pivot points, you can begin to track your emotional pivot points as you identify which set-ups or strategies have associated with them negative emotions. Document your trades with both a trade log (for mechanical data) and a thought journal (for internal data). You can actually indicate on the chart with both text and a mark at which point your emotional pivot became activated. This will help you to be proactive in dealing with the difficult entries and preemptive in using an emotional tool to reduce the intensity of the emotion associated with that particular entry. Your A-Game is absolutely critical to executing in the right place and at the right time. You’ve got to master your mental game before you can hone that A-Game.

Have you ever taken a trade and after the trade closed it was as if someone had control of your mouse? In other words, you realized that the illusion that you just traded seemed real, but it wasn’t, and you were trading without clarity. You were not aware. The importance of remaining aware can’t be overstated. Every day, millions of traders get caught in a “negative trader trance.” This is when you have ended your trading session and look over the results only to see carnage; rule violations, broken commitments and invariably lots of losses. But, while the trades were taking place you lurched forward with your head down even though part of you knew that you were violating rules. You were out of control. When these events happen, and most if not all novices have experienced or will experience them, you must get back into the Now, back into the present moment and increase your awareness of not only what you have done – are doing – but as well what you can do to refocus your intentions and reestablish your bearings in order to get the results that you want.

Consider this:

Maxine could feel the anxiety build as though it were a pot about to boil over. She looked at the NQ E-mini chart with a mixture of dread and depression. An upward intermediate trend on the daily chart had taken place, which was continuing on the intraday 60 minute in a rally, base, drop configuration. She had identified a demand zone and was looking for the price action to pull back into that zone. She placed a stop just below the lower line of the Demand Zone or Support. Her limit order was filled on the 5 minute chart and she had been in the trade for just a few minutes when the price action turned and was heading back into the zone – right for her stop. The dread she felt was prompted by the proximity of the price action to taking her out and the depression came from thoughts about the 3 losses she had already experienced. Maxine was way outside of her comfort zone. The anxiety was still rising and as well the dread and depression as all were fueled by the internal running commentary regarding what she perceived as her failures; not-to-mention the fact that she was about to lose…again. She wanted desperately to relieve the tension created by what she was telling herself about what all this “meant” regarding her trading abilities. Just then she placed her hand on the mouse getting ready to move her stop. She came perilously close to doing just that when she had a “moment of awareness.” She had learned the phrase “Remember Ma” which triggered her to pause, take a deep breath and ask herself several questions in order to bring her back into the Now of the trade so that she could focus on what mattered most; i.e., trading her plan and following her rules.

This type of scenario plays itself out over and over each trading day across the planet. There are traders who have good market knowledge, a good plan, and good money management but fail to keep their commitments and follow-through with the plan. They become so uncomfortable with flaring emotions like fear, anger, anxiety, greed, and self-doubt, to name a few; that traders inadvertently and often unconsciously do something that turns out to be a rule violation. That rule violation, whether, chasing, doubling down on losers or moving a stop etc., is a relief seeking behavior and becomes the precursor to a bad pattern or has already turned into a bad habit. This is when it is critically important to activate a “moment of awareness” as Maxine did. It can mean the difference between maintaining your cool with keeping your plan and the disaster of throwing it all out the window – which is exactly what you’ll incur if you violate your plan and rules. The key is to aim to remain in the moment, for the moment, fully available and fully present at all times. Granted, that is difficult, especially if you are new to the concept. Actually, you can practice at any time; the trick is getting yourself to practice it when you need it most – at those times in the trade when emotions are starting to storm. What you can do is use “Remember Ma” a little mnemonic that can help you by triggering the exercise of pausing and asking yourself:

1. What is happening right now?
   1. What am I doing?
   2. What am I feeling?
   3. What am I thinking?

Then ask a second primary question:

2. What do I want right now?

In other words, ask yourself what results are you really trading to achieve? Often just the act of asking the question will prompt you to redirect your behavior from being driven by an unconscious pattern to being results oriented. This can lead to a third question:

3. What am I doing right now to prevent me from getting the results I truly want?

Then you can make a choice, all you need to do is say the phrase to yourself, “I choose…” and insert at the end what you want to be the focus of that choice.

4. At that point, take a deep breath and move toward the result that you want by selecting a behavior that represents your A-Game.

This exercise (Remember Ma) involves changing the focus of your attention so that it is on the intention of the A-Game. The intention of your A-Game is clear; it is to master the process of trading as a rule based, plan following trader at all times. Unfortunately, so many traders are trading and going through life by default. This means that they are operating and behaving based upon old programs that are out of their awareness; i.e., in their unconscious. These programmed patterns of thinking, feeling and doing are motivated by limiting and irrational beliefs (also mostly unconscious) about their self-worth, intelligence, ability, etc.. So, when you are pushed outside of your comfort zone by your own unconscious thoughts and emotions based on the meaning you attribute to what you see, then you begin to reach for the temporary relief…chasing, doubling down, moving stops, etc.. This is when you most want to use “Remember Ma” in order to interrupt the bad pattern and get into the Now of the trade so that you can resonate with reality and what matters most in the trade. You must trade with your best when you are in the markets; nothing less will provide you with consistent winning results (where winning is defined as planning your trades, trading your plan and following all of your rules religiously). Your mental game is critical. Trading is a 90-95% mental game. Your performance is not based on anything physical; it is mental hence mental and emotional tools are required.

Statements that you tell yourself can be powerful as they are the physical outcomes of what you think. Additionally, statements can be used to focus your attention in order to remain on task and on purpose. Another word for a powerful and positive statement is “affirmation” as in a statement of truth or an assertion. However, did you know that as powerful as statements or affirmations are, to ask the right question can be even more intense and impactful? Try this, say out loud the affirmation, “I plan my trades and trade my plans perfectly.” What happened? Did you hear or sense in your head a voice that said, “No you don’t?” Affirmations are an excellent way to hone your mind and address underlying negative thoughts about you and your trading that distract your attention and distort your judgment. Furthermore, they can help you to create and maintain self-statements that are proactive. But, affirmations alone can sometimes fall short when you are using them to directly deal with “limiting beliefs.”

You see, your mind is constantly asking and seeking answers to questions. Consider for instance, a failed price pattern that you had played. When your attention has been engaged you invariably will ask yourself three questions, which most times will be out of your awareness. Those questions are: What is it? What does it mean to me? And, what am I going to do about it? These questions form a thought – feeling – behavior dynamic that will eventually lead to results…any and all results are built from this first. Humans are wired to continually assess their environments…what is there, who is there, what is going to happen, and how should I respond, to name a few. What if you were asked, “Why does the market discount all news?” Your mind would begin to search for the answer, rarely stopping to determine the veracity of the underlying premise. Going further, if you are always asking and searching for the answers to questions, why not engage this process to ask yourself empowering questions that will force you to change your thought patterns from negative to positive in order to answer them? Take the statement “I am a flawless trader” to which the mind might reply “yeah, right!” and change it to an empowering question, such as, “Why am I a flawless trader.” Try it, ask out loud, “Why am I a flawless trader?” Immediately, your brain begins to search for an answer to that question.

What is important to understand is that you create your reality in two ways; one is by the statements you make, and the other is by the questions you ask. Let’s explore the process:

1. Identify what you want in your trading.

You can use your current trading issues to determine this. An example would be to take your last negative trade where you violated a rule; as in, “I moved my stop.” Then envision the goal of how you want to trade without this issue; as in, “I want to plan all my trades and trade all my plans.”

2. Form a question which assumes that what you want is already true.

For example, “Why am I so good at planning all my trades and trading all my plans?” Your life is a reflection of the subconscious assumptions you make. When you ask the question you are changing your communication with your inner self and bypassing structures of limiting beliefs that would hamper an affirmation.   Try it. Did you notice that there is no, “yeah, right!”; that is because your brain bypassed the trigger that would have been associated with a “true/false” statement. You in effect have unleashed your mind to seek an answer to a question, rather than dispute a statement.

3. Embrace the question.

The process is built more on asking better questions rather than necessarily “finding the answer.” By asking better questions your mind is focused on your “assets” rather than your deficits; that is, what you have rather than what you don’t have. As a result of your mind bypassing the structure of your limiting beliefs and negative assumptions, you can begin to do things differently because you are “activating what you have” as your mind connects to the inherent positive assumption in the question, “Why am I so good at planning all my trades and trading all my plans?”

4. Take new actions based on your new positive assumptions about yourself.

You will begin to “look” at your trading from a new set of mental models and lenses based upon your new positive assumptions. You can begin to activate your internal resources and think in ways that are focused on the actualization of your question. Rather than being focused on “not moving stops” and trying to use will-power to keep your rules, you can remain focused on planning, patience and follow-through with greater confidence.   As you take action based upon what you have as opposed to what you lack, you can remain intentional about getting consistent results.

Affirmations are potent and can be used as a strong tool to maintain your focus on what matters most. Additionally, it is important to understand and employ powerful questions as well, especially when you have identified a limiting belief about you or your trading. Trading is arguably the most challenging business venture on the planet and when you are in the trader trenches you’ll want all of your tools to master your mental game, keeping it handy and honed. Your A-Game, not your B or C game, is the only one that you want to trade with.

Have you ever violated your trading rules? Or, have you ever broken a trading promise to yourself? I would venture that you have been at that fork-in-the-road of your trading more than a few times where you had to choose between a rule violation – that is, going to the left or, going right and keeping your highest and best trader handling your account.   What is it that worms its way into your system, takes you hostage and causes you to do things that are in direct contradiction to what you know is best for you? The thing that actually drives the bad behavior is an emotion, like fear or greed. The emotion is generated by a thought like a limiting or irrational belief, for instance, “If I have another loss that means I’m going to lose all of my money!” On the other hand, another part of you is saying, “Calm down, don’t even think about moving that stop, you must follow your rules.” Now, ask yourself, when these types of thoughts or urges have descended upon you what have you done? That’s right, in more cases than not you caved and moved the stop, chased the trade, prematurely exited or in some other way violated the rule that a few moments before you begged yourself to do the right thing.   So, what is also in play when you are at the crossroads of following your rules or crashing and burning, is conflict. The conflict stems from the part of you that is vested in implementing all of your rules and keeping all of your commitments and the part of you that believes that if you don’t move that stop there will be irreparable harm to your account. Conflict is when your system is at cross purposes with itself. When this happens your system has become frustrated, frazzled and fragmented and conflict is geared up and wreaking havoc on your execution.   Conflict causes you to do something that a few moments before you swore that you wouldn’t. Your purpose, beliefs, values, identity, and behaviors have become complicated.

Being in alignment can be described as thinking, feeling and doing in a way that resonates with the reality of the charts and optimizes all of your resources. Alignment is founded on a belief system that maximizes supportive positive beliefs and minimizes limiting beliefs.   Becoming distracted and fragmented are negative in and of themselves; but when you are in the trading process these negatives compound other deficits and exacerbate any ill thoughts or feelings that you might experience. When you are conflicted your ego is telling you one thing while your rational self is attempting to argue for what is right. That ego-voice might have been telling you, “Don’t mind that plan, you can move that stop if you want to!” Another point of contention is when your values become challenges as in “keeping commitments and promises” you become tolerant of rule violations and other lapses of judgment.

When you think, feel, say, and do in a way that is congruent you have internal and external consistency perceived by others as sincerity or authenticity. You are in sync, balanced, centered and grounded. It is having integrity and ‘walking your talk.’ It is like the moving parts of an engine, if integrity and alignment are compromised in that machine, even in minute ways, you’re not going to reach your objective due to internal friction or going off course. On the other hand, when alignment is true all parts are moving towards the same goal and in the same direction with precision.

There are many parts that are involved in alignment. Some of the more important parts are:

• Purpose
• Beliefs
• Values
• Identity
• Behavior

Purpose is of vital importance as you identify the reason why you are in pursuit of any goal, objective, or desire. You must be able to answer the “why” question. A compelling reason will not only move, but catapult you to achievement.

Beliefs must be in alignment in order to support your purpose. It doesn’t matter much how compelling your reason is for trading if you don’t have strong positive beliefs underpinning your why.

Values are also crucial. Personal principles and values are similar but not the same. Personal principles are what you “want” to live by. Values are how you are living. Once you identify a personal principle and incorporate it into your life by committing to it as a behavioral standard, then you transition to holding it as a value.

Identity or how you define yourself must also be aligned. For most people it will be important to first figure out who that person in the mirror is; meaning in the morning, when things get stressed, when things are going well, or when you’ve just put on an oversized position? The trick is to identify the person you’d like to be and begin to incorporate courageous change works into your daily routine to activate the strong, healthy parts of you towards being that person. When you are able to do this, you are on your way to becoming, step by step, the person you aspire to be.

Behaviors are the test of alignment. In other words, are you doing what you said you were going to do, like keeping commitments? Are you practicing appropriate money management and position sizing? When you have losses are you able to accept the reality and move on? Are you journaling and logging your trades? What you do speaks volumes about who you are. Alignment also relates to how you are conducting yourself in other parts of your life. Are you expecting more from others than you are willing to give yourself? Are you keeping your promises? Are you exhibiting courage? Align yourself and your trading for consistent success. You are an organic machine, and you work best when all of you are working in the same direction and on the same goals.