The Ujjayi Breath

Yoga Breathing or Pranayama, is the foundation of your yoga practice.  This deepening of your breathing helps you stay focused and calm while doing yoga poses, especially difficult ones.  You will find "breathing" is the foundation for many sports and exercises, allowing to push yourself, and really enjoy your work out.

I was introduced Ujjayi Breath in Phuket at the Traditional Ashtanga Yoga Shala in Phuket when I first got into Ashtanga Yoga.   The instructors, a Russian couple were simply great and I really advanced my Yoga skills.  Ujjayi btw means victorious.

Breathing especially helped me advance my practice, it's funny how some of the most important fundamentals, that we do without thinking, are often overlooked, never mind improved or perfected. 

 

Lately I have been finding myself applying breathing exercises when I hit the gym.  I have been bulking up a little, following the "Body for Life" plan that I followed back in the day, alternating days of cardio and weight training with a simple meal plan.

 

So circling back like a Seinfeld episode, what does Ujjayi Breath have to do with Forex?  Well if you want to be "victorious" in trading you need to have to be calm and focused. While breathing can help here too, it can go "deeper".  A set of systems, safeguards, and standard operating procedures. And a lot of analysis.   What exactly depends on you.  Just stay calm, and keep trading ;)

 

Stop the Insanity

Yesterday I wrote about Insanity being a full time job.  Today I'm going to give you some tips in the event you have gotten of course and are struggling with trading or perhaps in life in general.

• Change is the only constant.  First and foremost realize you have the ability to change.  When you want to change the outcome of your trading or life, you need to change your approach.   Is that Starbuck's employee constantly in a bad mood?  Smile at them first.  It's sometimes hard to be friendly first but when you are then others will usually return the favor.  By changing your approach you are changing your outcome.  Having a bad trade?  Stop, think back, and analyze what you did wrong.  And perhaps it's time for a new strategy.  (new approach)
• Short Term = Tactics.  Don't think just short term.  Even if you are a scalper or prefer short term (day) trades.   You need to think like the general and plan ahead.  You don't want to be the foot soldier in the trenches.  You want to think strategy. Long term.  What is the trend.   Today, this week, this month, this year.   Where is the market moving to. From. How long has it been moving in this direction.  What has, historically, happened in the past (think major trend lines).  Sometimes it's as simple as thinking when do the bullets stop coming, I'll take a break then, or in Forex terms, when does the market volatility (news) stop and I can ride the remaining wave.  Just like in surfing, you want to catch a good wave.   But when the waters aren't choppy and too intense.
• Long Term = Peace of Mind.  If you are constantly thinking short term and trading on a whim, on the seat of your pants, or better put, you are "gambling" and "making quick decisions" then you need to stop the insanity and calm your mind.  It's all fine if you make a good short term trade. (Catch a good wave)  But when you make a bad trade,  and you end up in a dangerous wave then the undercurrents pull you down, you will panic and regret that decision.  So instead of making quick decisions, make smart decisions.  Think ahead.  Analyze the trend. Analyze the market.  Analyze the news.  And like a trip to the mountains, plan ahead, what will you take with you, how long will it be, if it rains what is your alternate plan.  When do you return, etc.

You need to set S.M.A.R.T. Goals!  More on that tomorrow :)

Passion

When it comes to life, to relationships, business, and yes, surprise surprise, the Forex Market and Day Trading you need passion.  You need drive.  If you don't have it, you better get it back, quickly.

A lot of traders and wanna-be-traders fail because they lose their passion.  They start throwing up their hands, look to lay blame saying "It's not working".   When in fact the only thing that changed is the passion.  The passion to learn the market, understand the market, and the passion to fine tune your strategy or look for a new strategy all together. 

If you have lost the passion then you better sit back and analyze what happened.  Why were you passionate before?  What has changed?  Go back to the roots and start reviving that passion.  In relationships you can seek counseling or start by dating again.   In the forex market you either find someone that can help and coach you through it or you figure it out on your own and retrace your steps.

The Trend is not your friend

Speaking of the weather.   You know the saying "The Trend Is Your Friend"?   Well not exactly.

The Trend Is Your Fair-Weather Friend

The trend of course is very important when it comes to your trading analysis.  You don't want to swim against the current, however the trend is your Fair-Weather Friend, it can change, currents can change and pull you under.  

In other words, look a little deeper, perform more analysis and be prepared for the trend to change.    The trend might be up but are there major trendlines in sight?  For how long has the trend been up?   Are you approaching fresh monthly, yearly highs?  Is major economic news (think FOMC, ECB, NFP) on the horizon?   All sunny days come to an end.  All rainy seasons dry up.