Routine and Habits VI: The Pyschological Plan

What is Winning Psychology? For me it’s a combination of traits and tools that provide the environment whereby a trader consistently executes his trading plan. In this blog, I’ll look at some of the tools at the trader’s disposal.

The first is preparation: whether you are a day trader, or longer time-frame trader, preparation is essential. The preparation takes place firstly at the conscious level and then at the subconscious. I set out some of steps of the preparation in my previous blogs in this series. Once we have completed the preparation consciously, I recommend we visualize in the alpha state the various step of the preparation. It’s beyond the scope of this blog to describe the visualization process but there are any number of good books on the subject. By visualizing our planned response to the various scenarios, we reduce the probability that we’ll breach our plan.

The second tool I like is a bio-feed device. The one I use is the 3100 WristOx from but there are less expensive devices that do as good a job. The bio-feed back device warns me when my ‘rat-brain’ is starting to take control and before it totally takes over.

The final tool is the trading psychological journal. The purpose of my journal is to identify empowering as well as disempowering patterns. For example: a pattern that identifies when we are likely to over-trade. Once I find the pattern, I like to visualize:

  1. The events that created the environment
  2. Visualize an alternative response for a number of days
  3. Check to see if the next real-time event results in new behaviour. If it does, no further action is necessary. If it doesn’t, re-do steps (1) and (2).

For empowering patterns, I seek to create the pattern each time I trade.

I like to create weekly, monthly and 3-monthly summaries of the various patterns. In this way. I find it is easier to spot recurring patterns.

3 thoughts on “Routine and Habits VI: The Pyschological Plan”

  1. Mr. Barros,

    Quality postings from you “Routine and Habits” series. I especially enjoyed your trading plan, thoughtful and meticulous. Thanks for sharing your knowledge.

  2. You may wish to read what Dr Brett has to say which more or less coincides with what is touched here, at

    Anatrader has left a new comment on the post “The Limits of Self-Esteem”:


    I just woke up, scanning your Traderfeed and my mentor’s blog, and what a coincidence on the topics you both covered !


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