Yukoner:
Good job following the plan. Baseline discipline is necessary for us to move forward. Continue with the existing plan for Friday (tomorrow).
Incorporate what follows from Monday -- this is the step of incorporating awareness.
So far, we have been using the words emotions and thoughts almost interchangeably. For this post (and only for this post
), I am going to uses those two words precisely. The easiest way to define these two words is by understanding the workings of the mind-body complex. Roughly this is how this complex works (as applicable to trading):
(a) We see a visual though our eyes;
(b) The electrical signals are intercepted by our mental models;
(c) The mental models generate a mental state;
(d) The metal state generates (i) physiological reaction (emotion -- e-motion -- energy in motion!); and, (ii) thought;
(e) The physiological reaction strengthens the thought;
(f) The strengthened though starts chaining.
(g) Chained thought produces more physiological reaction, and the cycle (e)-(g) continues.
With respect to thought, (a)-(f) occurs in our sub-conscious mind. By the time we are conscious of our thought we are most likely well into chaining it. Now you can see the difficulty of becoming aware of one's thought. By the time we realize our thought we are way too deep into it and our emotions are super high.
What we would ideally like to do is to get to the thought in our sub-conscious (step d). Actually, ideally we would like to be aware of our mental state (step c) -- especially our negative mental state and our positive mental state -- so that we can stop the thoughts from being generated in the first place. When we trade, we don't want to be in either mental states. We want to be in a neutral mental state. However, becoming aware of one's mental state requires a lot of practice and hard work.
An easier alternative for you is to become aware of the physiological reaction that occurs in our body. Since physiological reaction reaches the consciousness much faster than thought, this is a good place to start. Pay attention to your body at all times, and as soon as you detect any of the following (only this nothing more):
Once you have noted down the result of your body's physiological reaction, ask the question "why is my <result of physiological reaction>". E.g. ask, "why is my heart beating fast?". Write down the first answer that comes to mind. Don't dwell on the answer or try to get the "correct" answer. Just write down the first answer that comes to mind.
There are two types of answer you will get. An illustration will help us discuss this a little more clearly. Lets say, you ask the question, "why is my heart beating fast". One possible answer (lets call this answer P-One) could be: "because I thought my stop was going to be hit". Another possible answer (lets call this answer P-Two) could be: "because I saw price reverse".
When your answer is P-One, you are extracting the thought from your sub-conscious before the thought bubbles into your consciousness and starts chaining. When your answer is P-Two, you have stopped the thought even before it is well formed in your sub-conscious mind. This is the power of becoming aware of your physiological change. Both answers are powerful and equally good. By doing this we have achieved our sub-goal: stop chaining of thoughts, which will help us stop escalating our emotions.
Incorporate: (a) becoming aware of your physiological change; (b) writing it down; (c) asking the question; and, (d) writing down the first answer that comes to mind; as part of Step 1 and Step 3 in your process.
We will talk about a tool to tackle and diffuse the recognized emotion after you have had an opportunity to pay attention to your body for a week. Now you have two tools: a tool to redirect your mind back to its task when distracted; and a tool to stop chaining of thoughts and stop emotions from escalating. Once you have the third tool: tool to diffuse and neutralize the recognized emotions, you will have in your possession the tool set required to acquire the trader's mindset you seek -- practice alone will help you reach it. There is no need to analyze your thoughts.
Note: Paying attention to your body's physiological change can be done anywhere -- when someone cuts you off on the road, when some one flips the bird, when you enter into an argument, etc. Whenever you feel that feeling in your body, pay attention to it. This is a useful tool, and so practice it whenever you get a change.
All the best. Rooting for you.
Regards,
Monoid.
Good job following the plan. Baseline discipline is necessary for us to move forward. Continue with the existing plan for Friday (tomorrow).
Incorporate what follows from Monday -- this is the step of incorporating awareness.
So far, we have been using the words emotions and thoughts almost interchangeably. For this post (and only for this post
), I am going to uses those two words precisely. The easiest way to define these two words is by understanding the workings of the mind-body complex. Roughly this is how this complex works (as applicable to trading):(a) We see a visual though our eyes;
(b) The electrical signals are intercepted by our mental models;
(c) The mental models generate a mental state;
(d) The metal state generates (i) physiological reaction (emotion -- e-motion -- energy in motion!); and, (ii) thought;
(e) The physiological reaction strengthens the thought;
(f) The strengthened though starts chaining.
(g) Chained thought produces more physiological reaction, and the cycle (e)-(g) continues.
With respect to thought, (a)-(f) occurs in our sub-conscious mind. By the time we are conscious of our thought we are most likely well into chaining it. Now you can see the difficulty of becoming aware of one's thought. By the time we realize our thought we are way too deep into it and our emotions are super high.
What we would ideally like to do is to get to the thought in our sub-conscious (step d). Actually, ideally we would like to be aware of our mental state (step c) -- especially our negative mental state and our positive mental state -- so that we can stop the thoughts from being generated in the first place. When we trade, we don't want to be in either mental states. We want to be in a neutral mental state. However, becoming aware of one's mental state requires a lot of practice and hard work.
An easier alternative for you is to become aware of the physiological reaction that occurs in our body. Since physiological reaction reaches the consciousness much faster than thought, this is a good place to start. Pay attention to your body at all times, and as soon as you detect any of the following (only this nothing more):
- the slightest change your heartbeat rate;
- shallow or fast breathing;
- tightness in chest;
- queasy feeling in stomach; or
- uncalled for smile or joyous mood
Once you have noted down the result of your body's physiological reaction, ask the question "why is my <result of physiological reaction>". E.g. ask, "why is my heart beating fast?". Write down the first answer that comes to mind. Don't dwell on the answer or try to get the "correct" answer. Just write down the first answer that comes to mind.
There are two types of answer you will get. An illustration will help us discuss this a little more clearly. Lets say, you ask the question, "why is my heart beating fast". One possible answer (lets call this answer P-One) could be: "because I thought my stop was going to be hit". Another possible answer (lets call this answer P-Two) could be: "because I saw price reverse".
When your answer is P-One, you are extracting the thought from your sub-conscious before the thought bubbles into your consciousness and starts chaining. When your answer is P-Two, you have stopped the thought even before it is well formed in your sub-conscious mind. This is the power of becoming aware of your physiological change. Both answers are powerful and equally good. By doing this we have achieved our sub-goal: stop chaining of thoughts, which will help us stop escalating our emotions.
Incorporate: (a) becoming aware of your physiological change; (b) writing it down; (c) asking the question; and, (d) writing down the first answer that comes to mind; as part of Step 1 and Step 3 in your process.
We will talk about a tool to tackle and diffuse the recognized emotion after you have had an opportunity to pay attention to your body for a week. Now you have two tools: a tool to redirect your mind back to its task when distracted; and a tool to stop chaining of thoughts and stop emotions from escalating. Once you have the third tool: tool to diffuse and neutralize the recognized emotions, you will have in your possession the tool set required to acquire the trader's mindset you seek -- practice alone will help you reach it. There is no need to analyze your thoughts.
Note: Paying attention to your body's physiological change can be done anywhere -- when someone cuts you off on the road, when some one flips the bird, when you enter into an argument, etc. Whenever you feel that feeling in your body, pay attention to it. This is a useful tool, and so practice it whenever you get a change.
All the best. Rooting for you.
Regards,
Monoid.
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So many wrong-turns, so much misinterpretation, but in the end .... at least Yukoner has access to fruits of experience from multiple sources. I would have died to be in his position. I really hope he uses it to the fullest!
