Checklist

Since the great majority of my trades are intraday, I wipe the mental slate clean each morning to ensure I maintain a uniformity of attitude throughout the next session. The goal: consistent minimization of the unexpected through the complement of adopting an open attitude towards any and all possible outcomes. My greatest weakness as a trader is the sudden deterioration of a sound and patient mindset that can occur at any moment throughout the trading day, so here is my checklist that I use to remind myself each morning of the elements most important for my performance.

1. Attitude: Are you optimistically patient? Can you picture yourself not trading at all today if no opportunities arise? Are you Little Orphan Annie or Agent Jack Bauer when it comes to the word Tomorrow?

2. Preparation: System implementation and account management. Have you noted any possible setups forthcoming for optimal entry and the actions entailed? Have you noted your max drawdown limit for the day and the willingness to honor it?

3. Balance of Concentration: Trading is as much anticipation of changes in your mentality as it is the market. Don't let yourself get completely absorbed by the "flickering ticks" and stay equally grounded on both sides of the monitor.

4. Equanimity: Concentrate on staying collected under fire, no matter how wild the market or how quickly losses come in succession -- keep the ship upright.

5. Visualization: Visualize each of the following:
-- Seeing a system signal, and entering the trade without further thought
-- A stop-loss triggered almost instantly, and just as quickly forgotten.
-- Waiting for the market to come to you before entering.
-- Adding to a trade that goes your way immediately, pushing when odds are in your favor.
-- Shutting down without hesitation when maximum daily limits are reached.

In each of these there's a keyword or image that literally rings a bell in my mind that helps to crystallize the intent behind that particular checkpoint and provides a mental shortcut. I think this helps in eventually making the run-through of the entire checklist an automatic process, a routine that hopefully embeds certain actions and attitudes within that same part of the brain that operates other habitual motor processes such as typing or driving.