How to Break Negative Trading Patterns

Our psychology interferes with our trading when patterns we have learned--and overlearned--are triggered by events and play themselves out without our full awareness. These can be behavior patterns, patterns of thinking, emotional patterns, or--as is often the case--an amalgam of all of these. Very often, the triggering of these patterns is state-dependent and situation-dependent. Most of the time, we exercise a reasonable degree of free will. It's under conditions of frustration, loss, fear, or greed that we find ourselves behaving in ways that are contrary to all our plans and best intentions.

The first step in changing any pattern is becoming a good self-observer and recognizing when the pattern is starting to play itself out. Often, we can become aware of common triggers to our patterns, so that we can respond more mindfully to challenging situations. For example, if I recognize that certain topics tend to lead to arguments at home, I can quickly recognize myself become tense when one of those topics is raised and take a short break. It's when we can observe patterns beginning to unfold that we become able to short-circuit the process and interrupt the negative cycles.

This is why keeping a psychological journal can be very useful in making changes. We can use the journal as a tool for self-observation, writing in real time what is happening, how we're feeling, and how we'd like to respond. It's at those times we can remind ourselves of the consequences of the negative pattern and the benefits of responding more constructively. Such a journal becomes a mindfulness tool.

Here are common patterns impacting traders:

* Negative thought patterns--worry and self blame--following losses;
* Overtrading out of frustration following losses;
* Becoming paralyzed and unable to act on opportunity out of fear of loss;
* Becoming overconfident and overtrading after wins;
* Procrastination and failure to prepare properly for the day;
* Trading too small due to lack of confidence;
* Trading impulsively out of a lack of patience.

The common element among these patterns is that emotional, physical, and cognitive states lead to suboptimal decision-making. It's when we can recognize these patterns in real time that we can interrupt them, shift our states, and return to best trading practices. In becoming observers of our patterns, we distance ourselves from them, and gain potential control over them. Good psychological trading is staying fully conscious and self-aware, even during challenging situations.

Further Reading: Core Ideas in Trading Psychology
.

Benefits Of Healthy eating Turmeric every day for the body

One teaspoon of turmeric a day to prevent inflammation, accumulation of toxins, pain, and the outbreak of cancer. Yes, turmeric has been known since 2.5 centuries ago in India, as a plant anti-inflammatory / inflammatory, anti-bacterial, and also have a good detox properties, now proven to prevent Alzheimer's disease and cancer. Turmeric prevents inflammation: For people who

Women and children overboard

It's the Catch-22 of clinical trials: to protect pregnant women and children from the risks of untested drugs....we don't test drugs adequately for them. In the last few decades , we've been more concerned about the harms of research than of inadequately tested treatments for everyone, in fact. But for "vulnerable populations," like pregnant women and children, the default was to exclude them. And just in case any women might be, or might become, pregnant, it was often easier just to exclude us all from trials. It got so bad, that by the late 1990s, the FDA realized regulations and more for pregnant women - and women generally - had to change. The NIH (National Institutes of Health) took action too. And so few drugs had enough safety and efficacy information for children that, even in official circles, children were being called "therapeutic orphans." Action began on that, too. There is still a long way to go. But this month there was a sign that

Not a word was spoken (but many were learned)

Video is often used in the EFL classroom for listening comprehension activities, facilitating discussions and, of course, language work. But how can you exploit silent films without any language in them? Since developing learners' linguistic resources should be our primary goal (well, at least the blogger behind the blog thinks so), here are four suggestions on how language (grammar and vocabulary) can be generated from silent clips. Split-viewing Split-viewing is an information gap activity where the class is split into groups with one group facing the screen and the other with their back to the screen. The ones facing the screen than report on what they have seen - this can be done WHILE as well as AFTER they watch. Alternatively, students who are not watching (the ones sitting with their backs to the screen) can be send out of the classroom and come up with a list of the questions to ask the 'watching group'. This works particularly well with action or crime scenes with

Humor4u

Search This Blog