Traders tend to work with great leverage and recognize the need to be on top of the crowd. They are well aware of how emotional interference may create gaps in the discipline and the distortion of perception, leading to substantial loss in trading. For this reason, many traders are interested in psychology and methods of self-improvement and personal growth that can assist them in maintaining their concentration, attention and emotional stability.
Sure, there are a lot of self-help methods that can be a useful addition to the arsenal of tools a trader. But in terms of approach to the solution concentration, the traditional methods of self-improvement often make difficult trade even worse, not better. Let's see why this is happening.
Let's take the example of the kind of trader John, who is concerned about his lack of sleep and its impact on trade. The psychologist recommends that the relaxation exercises before bedtime. Perhaps, the psychologist will prescribe a short course of care, to help John to return to its normal cycle of sleep. Although this current methods, they often have unpleasant consequences. John returns to his psychologist with an even stronger feeling that he had a serious problem.
The fact that the more psychologists speak of his "sleep problem", the more they reinforce his opinion that this is indeed a real problem that exists independent of consciousness, John. This is particularly problematic in the long-term therapies, where exhaustive discussion of past human conflicts, help cement the idea that man is, indeed, is in conflict and worried. In fact, what the therapist would have treated you from your problems, if you have it not be?
Let's take an example closer to the trade. For example, a mentor to trade offers help for the "unsuccessful bands of their customers." A mentor can give advice about the unique strategies of money management, protective stop orders, sales techniques or methods of self-help to cope with these bands. But all this aid simply strengthens the basic idea that these bands are that they are the problem and the need to adjust the trade for these bands. Like the trader who goes out of long positions too early after a few bars of adverse, the trader who experiences several successive losses are likely to leave a worthwhile trade system in the worst possible time. In terms of method, the concentration on the solution, any help that you are looking for a solution to the problem, tends to reinforce this issue in your mind, adding to it. Many problems start quite by accident, but, ironically, supported the efforts we are taking to get rid of them.
So what's a trader, trading coach or therapist to do? Example with strips of trade offers perhaps the most clear illustration of an additional strategy. Rather than refer to the "string of bad luck," a mentor could help a trader to test his methods of trading. It identified a band of the expected losses, based on real market data. Armed with a specific set of expectations for a normal recession, periods of calm, and consecutive losses in the market, the trader would get "vaccinated" against the tendency to over-interpret the events. Unfavorable results are not randomly attached to a larger value than it actually is.
Sure, there are a lot of self-help methods that can be a useful addition to the arsenal of tools a trader. But in terms of approach to the solution concentration, the traditional methods of self-improvement often make difficult trade even worse, not better. Let's see why this is happening.
Let's take the example of the kind of trader John, who is concerned about his lack of sleep and its impact on trade. The psychologist recommends that the relaxation exercises before bedtime. Perhaps, the psychologist will prescribe a short course of care, to help John to return to its normal cycle of sleep. Although this current methods, they often have unpleasant consequences. John returns to his psychologist with an even stronger feeling that he had a serious problem.
The fact that the more psychologists speak of his "sleep problem", the more they reinforce his opinion that this is indeed a real problem that exists independent of consciousness, John. This is particularly problematic in the long-term therapies, where exhaustive discussion of past human conflicts, help cement the idea that man is, indeed, is in conflict and worried. In fact, what the therapist would have treated you from your problems, if you have it not be?
Let's take an example closer to the trade. For example, a mentor to trade offers help for the "unsuccessful bands of their customers." A mentor can give advice about the unique strategies of money management, protective stop orders, sales techniques or methods of self-help to cope with these bands. But all this aid simply strengthens the basic idea that these bands are that they are the problem and the need to adjust the trade for these bands. Like the trader who goes out of long positions too early after a few bars of adverse, the trader who experiences several successive losses are likely to leave a worthwhile trade system in the worst possible time. In terms of method, the concentration on the solution, any help that you are looking for a solution to the problem, tends to reinforce this issue in your mind, adding to it. Many problems start quite by accident, but, ironically, supported the efforts we are taking to get rid of them.
So what's a trader, trading coach or therapist to do? Example with strips of trade offers perhaps the most clear illustration of an additional strategy. Rather than refer to the "string of bad luck," a mentor could help a trader to test his methods of trading. It identified a band of the expected losses, based on real market data. Armed with a specific set of expectations for a normal recession, periods of calm, and consecutive losses in the market, the trader would get "vaccinated" against the tendency to over-interpret the events. Unfavorable results are not randomly attached to a larger value than it actually is.
