Trading Psychology – Winners Want the Ball

Sometimes inspiration can come from unexpected places.

The other day, my son was watching the movie “The Replacements”, which stars Keanu Reeves and Gene Hackman.   In the movie, Gene Hackman is the interim coach of a replacement football team during a player strike, and Keanu Reeves is the quarterback of the team.

During their first game, the defensive players are talking a lot of trash and manage to get inside Keanu's head.  On the last play they put on like they're going to blitz and Keanu gets nervous.  He has a chance to win the game, but at the last second Keanu changes the play – and they lose.

While they're walking off the field, Gene Hackman is furious, knowing that Keanu got scared when he thought the defense was going to blitz.  To put things in perspective for Keanu, he says,

“Winners want the ball when the game is on the line.”

So how does this relatet to trading?

One major factor that separates the winners from the losers is confidence versus doubt.  They're both faced with the same situation, but the winners can overcome their fears and doubts.  They have a certain state of mind that they've developed that helps them stay focused on the victory, not the possible loss.

Winners want the ball because they know that when the pressure is on, and only bold and confident action is what will result in a win.  Shaking with fear means certain loss.

Football, golf, soccer, sports in general, business, trading, etc all have one thing in common – they are 90% mental.  Skills, experience, knowledge, strategy, etc are all secondary to your state of mind – because your performance and your results all depend on your decision making and timing.

So while it is tempting to let your focus be drawn to the latest fad in the technical areas, remember that nothing will do you any good unless you can keep your cool and trade well when the pressure is on – and it's always on.

Cheers

Brian

P.S.  Yes the focus here at Inside Out Trading is shifting more back to the psychology of trading – because of its importance.  Keep your eyes peeled for a very special introduction to the new publication designed specifically to keep you at the top of your game!