As somebody who plant amongst traders across a diversity of settings, I've learned to last sensitive to their self-talk: how they procedure markets together with peculiarly their ain performance. We practise non sense the footing directly; rather, nosotros actively translate events together with react to those interpretations. Our self-talk--how nosotros reverberate on the events of our lives--is the production of this interpretive process.
Our self-talk, similar our behavior, tends to last patterned. Patterns of negative self-talk lead keep been associated amongst depression; worry is mutual amid anxiety problems. Traders, equally a group, are a highly achievement-oriented group. They practise non accept losses easily. Very often, their self-talk reflects their intolerance of shortcomings.
This intolerance takes the flat of second-guessing trading decisions; the subject of traders' thinking is "should have": I should lead keep taken profits earlier; I should lead keep entered the merchandise earlier; I should lead keep traded larger; I should lead keep traded smaller. Each "should have" is an implicit self-criticism. Over time, this minute guessing takes its cost on self-confidence.
There are times when nosotros pause rules of prudent trading, together with and then it makes sense to reverberate on our mistakes together with larn from them. The "should-have syndrome", however, is oft non a sober reflection on genuine error. Rather, it is a second-guessing from a perspective of omniscience: alone an omniscient trader would lead keep known to purchase the low, sell the high, size the winners large, together with size the losers small. The second-guessing is non run of a constructive, problem-solving process. Rather, it is an aspect of frustration.
As I review the mag entries of many traders, I read i "should have" afterward another. Ironically, those traders would never desire to last second-guessed yesteryear somebody else: they would thought the "should haves" equally backseat driving at its worst. Driven yesteryear perfectionism, however, nosotros tin flame undercut our ain judgment together with lose sight of our successes.
How practise you lot translate your trading results? What is the musical note of your self-talk? Is it a musical note that builds motivation together with confidence, or i that destroys those? Much of success inwards trading lies inwards the interpretation of marketplace patterns. All of that is imperiled, however, if nosotros cannot accurately translate the results of our ain decisions.
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