Have you ever watched an elite athlete play their game and thought about how they are a model for traders and trading psychology? Fluid motions, always seeming to be at the right spot at the right time, rarely flustered or visibly upset, and more often than not, making winning plays. How do they develop these skills and can traders use this information? Here are three characteristics of the elite athlete and how they apply to trading:

Characteristic #1 – They prepare. Not only do they prepare, but they prepare very well before ever setting foot on the court or field to play. Elite athletes spend hours before every game studying their play book, videos of their opponents, and working through a game plan. They not only know their own play, but the play of their opponent – how they strike the ball, their strengths and weaknesses, and even their tendencies in key situations.

What Traders Can Do: Prepare well. Review charts, know key levels of support and resistance, and be familiar with how the market has been trading. Then do more. Review periods when the market has traded in similar conditions. Look for tendencies and also for signs when the market doesn’t follow its normal course. Learn to recognize changes from the norm. These often present the greatest profit opportunities.

Characteristic #2 – They Execute. In the game, elite athletes are executing their game plan. Their focus is on making the plays they have prepared in their pre-game preparation and interpreting the play of their opponent. Their expectations coming into the game are guidelines only. They are integrating the play of their opponents into their game plan and are adjusting to it.

What Traders Can Do: Complete your homework before stepping in to trade. During trading is not the time to be finding out whether there is news today or where support and resistance are located. This is done in preparation. Now the task is to focus on the unfolding market. The plan you created when preparing for today is a guideline, not a prediction. Seek to anticipate how the market will evolve, always adjusting with alternate scenarios.

Characteristic #3 – They Review. When the game is over elite athletes study their performance. They review game films, identify the plays they executed well and where they fell short. Review isn’t about getting down on themselves but used as a way to learn and improve their game.

What Traders Can Do: Make it a part of your routine to review the day. Assess not only market action but your trading performance as well. Areas that can be improved now become part of your preparation. This is how to gain competence and greatness.