Source: http://traderfeed.blogspot.com/2007/01/letting-profits-run-guide-to-becoming.html
~~~~~~~~~~~~~

My most recent post emphasized many of the basics that enable people to become their own trading coaches. For this last post in the series, let's apply those basics to one of the most common trading problems that people describe to me: the difficulty of letting profits run.

From the previous post, it should be clear why this is such a difficulty: We set our profit targets and trade strategy while we are in one state of mind but then, as the trade progresses, we enter an entirely new state. That new state very often involves worried thoughts about losing unrealized profits or having gains turn into losses. It generally brings an elevated heart rate, increased muscle tension, and more rapid and shallow breathing. As we become aware of the nervous feelings, that helps to perpetuate the negative thoughts and altered physical state, which in turn can amplify the anxiety. Very often, cutting positions short before profits can run is simply a coping device to manage this anxious state. We exit the position for emotional relief, not for reasons of sound strategy and money management.

The solution focused approach calls on us to review those occasions in which we have been able, in some measure, to let profits run--even just a bit. What did we do differently on those occasions? Those exceptions from our problem patterns are what we have to build upon: they are our potential solutions.

In my case as a trader, there are several things I've done differently when I've been successful in letting profits run:

* I have planned the trade well in advance with research; it is not a spontaneous trade, so I've had time to think clearly about what I want to do.

* I have a clear profit target in mind based on research and refuse to waver from that target unless the market takes me out with a predefined stop. I consider myself a person of integrity, so I tell myself that I have to show integrity and loyalty to my trade idea and target;

* I don't follow the position tick for tick. Either the trade will hit my target or it will hit my stop. I make a conscious effort to let go and not micromanage the trade;

* I keep myself calm and clearly focused by purposely getting up from my chair, doing some stretches, breathing deeply, and getting away from the screen. I keep myself in a state that is incompatible with anxiety;

* I rehearse constructive self-talk during the trade. I tell myself that I've done my preparation and established my edge. Any individual trade can go against me, but if I take all the good trades I can, eventually I'll benefit from good odds and a good risk-reward ratio. If I lose money on the trade, I'll figure out why and what that might be telling me about the current market.

All of these steps, taken together, form a template for how I manage to hold onto positions to maximize profits. Now the key is to turn this template into a habit pattern. I want it to become automatic--an internalized part of me.

To accomplish this, I wear my heart monitor and go out for a morning jog prior to the market open. I use the monitor to ensure that I maintain an elevated heart rate and a good jogging pace. While I'm running, I'm mentally rehearsing each aspect of my template. I'm imagining my trades, and I'm imagining what I'll do if they move in my favor. I rehearse the proper self-talk, and I imagine getting away from the screen and staying loose. I also imagine, with plenty of emotion, how happy I'll be sticking to my ideas and reaping enhanced profits. In short, I'm getting physically *and* emotionally pumped up during the jog.

This becomes a routine every morning. Repetition and powerful emotion are the keys to turning patterns into routines and setting new spots on our radio dial of consciousness. After a while, those thoughts, images, and feelings from my jogs begin to appear on their own, as they increasingly become familiar parts of me. Then, during my break from the screen while I'm letting a trade run, I go on my treadmill for a few minutes or simply jog in place. I get myself back into the pumped up state and recruit everything I've rehearsed. Instead of feeling anxious while riding the trade, I'm feeling energized.

Again and again, during each trading day.

Notice that you could substitute any desired behavior for the holding onto trades and make this technique work for you. It does take practice and repetition, but once you have a positive habit pattern, you have it potentially for life. The key is focusing on your strengths and turning those into patterns that can be triggered when you enter into associated states of mind and body. In my example, I used jogging to create the unique state. I could have just as easily chosen meditation or self-hypnosis.

Once you grasp this method and become good at it, there are many positive patterns you can program--in your work, relationships, and trading. There is no need to become bogged down in problems when you can build upon your own solutions.

Source: http://www.rockwelltrading.com/blog/let-your-profits-run
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In our Simple Day Trading Strategy I use a stop loss and a profit target based on the volatility of the markets. This means that I am using a larger stop loss and profit target in more volatile markets and a smaller stop loss and profit target in quiet markets.

This morning I received an email from a trader asking me:

"Why do you use profit targets? I heard that you should let your profits run."

Using a profit target will help you controlling your emotions. Just think about it: When you exit a trade, it is usually too early or too late. You won't be able to pick tops and bottoms, at least not consistently.

So if you get out too early and you see that the market continues to move in your direction, you might be tempted to re-enter. You might get angry at yourself for getting our too early and want revenge. So you enter again, but it's too late and the trend is already exhausted. As soon as you enter prices move against you and you might realize a loss.

Getting out too late can also trigger certain emotions. Let's assume you were right about the direction of the market and saw $500 in profits. You haven't taken any, since you want to let your profits run and now the market retraces and your unrealized profits decrease to $400.

You now say to yourself: "That's a normal retracement. The market will continue in my direction shortly".

But it doesn't. Your unrealized profits shrink to $300, and now you have a plan: "As soon as the market recovers and I see $500 in profits again, I exit". And it really happens: The market bounces back and you see $400 in unrealized profits. But then the market retraces again, and your profits shrink to $200. You wonder if this is a "normal" retracement or if the trend is exhausted. At this point you are uncertain when you exit, and this indecision paralyses you. You sit and wait, hoping that the market moves again in your direction.

But it never happens. Prices are now hovering around your entry price, but since you've already seen $500 in (unrealized) profits, you now don't want to exit at break-even. You say to yourself: "The market will come back, the trend looks still strong", and you start justifying your position. You are desperately looking for clues that the market will continue to move in the right direction and you might plot more indicators on the chart or even change to a different time frame.

With all these additional information you know feel more confident that this is only a retracement, and that the market will bounce back shortly. But there's still some doubt, and you decide to take profits as soon as you see $250 in unrealized profits. You are so focused on "being right" that you don't realize that you are fooling yourself.

And the market continues to go against you.

So instead of getting out of this trade you look at more indicators, more timeframes, more information.... and let a winning trade turn into a losing trade.

Don't let THIS happen to you!

Use a profit target and a stop loss and put the trade on autopilot. And if the market moves beyond your profit target, don't bother! Be happy and contend with your profits. After all, you realized profits.

The key to trading success is to be right about the direction of the market ... and then realize the profits. Paper-profits are not worth anything. Take your money off the table as long as it is there!

There's always something new to discover about yourself, so they say.

At 29.5 years old, I finally realized and consciously, full-heartedly accept the fact that I am an intensely goal-oriented person.

L O S S
by Sasha Xarrian

There are many in America right now that are losing their homes.

My children and I lost our home shortly after my divorce. Losing your home, a loved one, a business, a job, or any other significant thing or person in our lives brings forth vast and unsettling emotions.

Our sense of security, identity, and safety is threatened.

We wonder if we will survive. We wonder how we will survive. We feel pain, anger and a sense of tremendous loss.

At one time or another we will all experience this in our journey through life.

Sometimes we merely survive the upset.

Sometimes we are left with unresolved anger and a lingering or lifelong feeling of unjustness and unfairness.

Sometimes we experience a greater sense of ourselves and our abilities. We realize that we can not only survive but that we have intelligence, instincts, and strengths beyond what we previously believed.

Sometimes we experience a peace that is more profound than we ever imagined. Sometimes our self-confidence expands. Many times we learn the power of letting go. And many times we learn that we are not the things we own or we are not the other half of another person.

What is life about?

Why do these “calamities” befall us?

Why are we here?

I believe that we are here to learn who we really are. I believe that we are here to grow in our power, love, intelligence and sense of self.

I believe we are here to demonstrate to ourselves that we can survive and that after and through survival we rise to higher levels of spiritual and internal power. When I use the word power, I mean the ability, capacity and action of generating – of creating – this divine power within that many times has lain dormant waiting to be awakened.

Are you experiencing a wakeup call right now?

Are you being challenged beyond reason?

Are you unsure of your ability to survive or cope?

Know that you are more than this experience.

Know that you are divine.

Know that, on some level, you may even have created this event for your own growth or wakeup call.

Know that this may be a turning point in your life.

Know that you may discover a part of yourself that you never knew existed.

Know that – in time – you may look back on this experience and call it the best thing that could have happened to you.

Know that it is not “bad” and neither are you.

Know that you are a creator.

Know that life is with you – whether you feel it now or not.

Know that you have the ability to look at what occurred or is occurring and figure out what you could have done differently to have prevented this. Know that it really is okay that you didn’t prevent it. Learn from this experience.

As you have read in Outrageous Mastery®, I figured out how to get a home for my children and myself. It was a wreck and it made me angry but once my children and I accepted it as a challenge – we rose to the occasion.

The pride that we all felt a year later went soul-deep. A neighbor just shook her head and said, “You are superwoman!”

And I felt like superwoman.

Know that everything passes.

Know that life goes on.

Know that you are more than this experience.

Know there is a reason for it.

Know it may turn into a gift.

Know that you are incredibly special.

Know that you are loved.

Know that it doesn’t mean you are a failure.

Know that it doesn’t mean anything negative about you.

It is a life experience. That is all.

And it is an opportunity to be stretched, to go beyond your comfort zone, to find out how tough you really are. It is your challenge.

Rise to the occasion and show yourself who you are.

Look for and find the opportunity that is awaiting you. It is there.

Know you are more important and worth more than what is happening.

Know, as time passes, everything will be fine.

Know that you are the one that can make it fine.

With Love and Mastery,
Sasha Xarrian
www.OutrageousMastery.com

Perez Hilton is right. Miss USA should represent every American regardless of their beliefs, religions and for sure, sexual preferences. I think Ms California Carrie Prejean wasn't thinking clearly under the intense pressure when asked the question and so, she gave the "wrong", non "World Peace" type of answer.

However, what irritated me the most was the fact that after the contest, she said that she stood by her answer and insisted that even though she was politically incorrect, she was "biblically correct". Apparently she's a "conservative" Christian. *puts head in pail and puke*

Woah! Tell me now, will a true "conservative Christian" parade her fake boobs in bikini in front of millions worldwide to be judged? (Hell yeah they're fake. Shouldn't the good Christian be thankful of whatever God gave her??) What's so conservative about that, huh? And since she's such a goody Christian, as trumpeted by her suppoters, does anyone believe that she's a virgin? Hah.

I had read the comments and responses of many Americans online, and it's very obvious that the majority supported Ms California for "standing up to what she believes in", and more ridiculously, "standing up for Christianity". In fact, an online poll showed that 83% of the voters were in favour of Ms California's opnion. So here's another reason why I'm so irritated -- millions and millions of y'all Americans seem to have sky high moral standards, but according to divorcerate.org --

I first came here in 2004 when everything was perfectly flawless, clean and in tip top condition. There were far less people back then and the services much more warm and personal, unlike now. But the worst offender of all gotta be Royal Bay Beach Club: slooooooooooow inattentive service, foods took1.5 hours to arrive and tons of flies everywhere. Disgusting!

However, the Hill Villas were still as comfortable as ever. Plants and landscapes were also well maintained. But will I come back for the third time? Gee, I don't think so. Next up: Disneyland! (yeah, right)

Hey Sooyen,

Hope all is well with you!

Remember we talked about 'how to live on purpose' last time?

The point of view we tried to get across was the one in which you bring meaning to life YOURSELF by 'living on purpose'.

The place to start would be here:

* Step 1: Decide what you want
* Step 2: Set a goal for that

And so you've got a goal, a purpose... That's all there's to it!
Well, kind of...

Anyway, that was just a quick heads-up on what we discussed last time, when we first got into the whole 'living on purpose' thing.

Now, the first step is usually the hardest part for most people, although it seems so simple...

And actually it IS simple, but most people are just afraid to admit what they really want.

Still, if this is hard for you, you can always start with something simple or small and get into the more general themes of your life when you get the hang of this process.

But this was the reason why we left it at this last time. We wanted to give you some time to think about what you really wanted...

However, today we want to take this to the next level, to some more advanced steps to really make things happen!

***************************************
So let's pull this to the next level...
***************************************

Okay, so we mentioned setting a "goal" as a 'concrete purpose' to direct yourself at (maybe even just temporarily)...

Goals have been dubbed 'dreams with a deadline'. But actually, there are roughly 2 kinds of goals:

1. The kind of goals about which you know exactly how to achieve them.

2. The kind of goals about which you haven't got the slightest idea about how to achieve them.

Deadlines are nice, but if you've got no idea about how on earth you're going to achieve what you want, you're only putting unwanted pressure on a creative process.

That's especially true if you set unrealistic deadlines...

So that's why deadlines are mostly suitable for the first kind of goal, the one in which you already know the steps to take...

Those are also the 'simpler' kind of goals that you can use to get a feel for this process...

So just set realistic time frames and deadlines for the steps that you know to take, and just do it. It's as simple as that.

** But we know you're probably more interested in the second kind of goal, which usually have more to do with the overall themes of your life... **

(for example, you want more "wealth" and "success" (whatever that is for you), or you want to "attract your perfect partner", things like that...)

So let's get into that a bit more...

*************************************************************
Now let's pull it up another level: How to achieve the more 'untangible', 'general theme of life' goals/purpose that you don't know how to achieve (yet)...
*************************************************************

First of all, once again, you need to have an image of what you want.

There's a very profound statement by Cheshire Cat in Lewis Caroll's 'Alice in Wonderland':

"If you don't know where you're going, any road will take you there."

So you need to have some image of what you want to move towards, and preferably an extremely clear one. AND you need to include some detail, and preferably a lot.

(You've probably already done this to an extent in step 1, but include some more detail here...)

But anyway, that's one thing, but it doesn't stop with that...

You also need to consider your 'deeper values' and 'emotional triggers' associated with your goal.

What's that?

It's the underlying drive that explains why you want what you want in the first place.

And there's a very simple way to find it:

* Keep asking why. WHY do you want that? And WHY do you want THAT? WHY? WHY? WHY?

Keep asking why. And eventually you'll get to your personal core values, the things YOU really deem to be important and actually drive you, such as:

Love, health, personal freedom, peace of mind, balance, career, integrity, adventure, fun (joy), fulfillment, financial independence, growth, loyalty, family, friends, solitude, contribution, comfort, passion, etc.

It doesn't matter what it is... What matters is what moves YOU!

So that's step 3 and 4:

* Step 3: Create a more detailed image of what you want.
* Step 4: Include your emotional triggers and core values in that image, by keeping asking "Why do I want that? Why? Why?".

You must identify what moves you, Sooyen...

You must find your emotional drive...

And after that, the real fun is going to start...

*********************************************************
Listen up, because there's much more than what we've been discussing so far...
*********************************************************

Okay, we're going to leave it at this for now, Sooyen...

But there's much more!

Next time, we'll get into some other concepts, among which creative visualization (but not just that).

And we've got a pretty original method in stock for you that we think you may like very much...

But you first need to do the things we've been discussing today to make that work.

So do the work for now, Sooyen, and keep an eye on your e-mail!

We'll get back to you real soon!

Take care,

Henk and Nicholas

Hi Sooyen,

• A return ticket is cheaper by RM10+, and it doesn't charge 3% administrative fees like Aeroline.

• Every seat comes with personal entertainment set; movies and cartoons on demand, plus video games.

• It doesn't have some stupid luggage tagging system like Aeroline. If you're bringing a stroller and a luggage bag, you'll have to pay to buy extra tags!

• You get to choose your seats at no extra charge when you buy tickets online. You don't get to choose Aeroline seats online.

• They serve Subway sandwiches for tea time (from KL) and from Singapore, the hot meals for lunch and dinner came from the kitchen of Copthorne  Orchid, a 4-star hotel. I don't know what Aeroline serves onboard, but I heard McD's???!

• They have Wi-Fi onboard, so that you can Facebook during the journey (though I spied that it took a long time to load the page)

• They have very good customer service! When we arrived in Mont Kiara it was raining heavily but thankfully a staff volunteered to stand in the rain by the pavement to hail down a taxi for us. Thanks Odyssey!
  

On 22nd March 2009 I discovered that there was a little kid in my heart after all. The experience at Disney on Ice, Princess Wishes was like.....WOOOOOOOWWWW!! When the light dimmed and Tinkerbell skated out, it was surreal...and when Mickey and Minnie came out, it was (almost) as good as meeting Brangelina! Everything was so extravagant...so over the top...so DISNEY.

They sure know how to put on a good show. It made me feel like I MUST visit Disneyland (the one in Orlando Florida obviously... sorry, the HK's or the Jap's can't entice me) at least once in my lifetime before I sign off.