Q: "The constant need to shift mental states between tasks is one reason that so many people lose money day trading." - Van Tharp

Van, hopefully I quoted you properly; I can't remember where I got that from, but it's been an insight that has become very real and clear to me over the last year. As I have a day trading system and a longer term system, I've had need to think about shifting states. Many times I endured frustration until the light bulb went on one day, illuminating me to the fact I was trying to mix oil and water - meaning: "Long term thinking and short term thinking do not like playing together." I'm not suggesting that my catchy little quote captures the essence of what you were conveying, but for me, it's at least a part of it. What I find very effective is to rehearse the day's trading and settle in my mind beforehand what my objective is and visualize keeping the bigger picture in mind to see how the developing trade fits. I stand back from my trading chair and picture myself watching a fast-moving trend while frequently checking other market indicators to evaluate the bigger picture and how my trade looks and feels in comparison. I also picture pushing back from the screen without having made a trade because nothing fit my definition of a "fat" trade.

My day trading system could very easily make less than 10 trades a month. I'm working on the discipline to wait like a snake. It's becoming easier for me to wait all coiled up for a long time and then strike fast (2 hours is a long holding period) and hard (put on an aggressive position size). Then, I get to pull back and patiently wait for the next trade.

1. Do you have any comments or suggestions with respect to shifting mental states and what I've shared above?
2. Do you have any recommended reading or studies regarding shifting mental states?

A: Our Peak Performance Home Study Course has information in it pertaining to mental states -- especially volume 4. We also have a Peak Performance 101 workshop in which is teach 15 ways to change your mental state. Another suggestion would be learning, understanding, and following 10 tasks of trading (also found in our home study). Also various NLP books each go into one or two methods.

I am traveling for the next few months, so I won't be able to post as often, but please keep sending those questions in.