Info!! Trading Psychology Challenges - 9: Pessimism Too Negativity

Interesting research suggests that people are less able to intend inwards creative ways when they are inwards negative mood states.  People are besides less productive when they are downwardly inwards the dumps.  When nosotros acquire negative inwards the seem upwards of disappointing returns, nosotros tin flaming unwittingly practise a downward spiral, where nosotros throttle our insight together with productivity but when nosotros withdraw them most.

Cognitive psychologists emphasize that it is our agency of thinking nearly events, together with non entirely events themselves, that shape our emotional responses.  (See Chapter vi of The Daily Trading Coach for a position out of cognitive techniques used to reshape our emotional responses.)  When nosotros abide by ourselves mired inwards pessimism, really oftentimes it is because nosotros are telling ourselves that nosotros cannot win, that nosotros are sabotaging our ain success, etc.  Such self-talk is non constructive; past times it's nature, it can't Pb us to a solution.

As the Ward quote suggests, the respond to our challenges is non to complain or to passively promise that things volition blow over.  Our chore is to conform our sails when weather condition change.  When nosotros merchandise poorly, perchance nosotros receive got shifted inwards our ways of trading, becoming overconfident or fearful.  Alternatively, perchance we're trading inwards our commons ways, but markets themselves receive got shifted.  As we've seen inwards the final duo of years, approaches to trading that receive got worked inwards the past times (short term momentum/breakout trading, for example) tin flaming dramatically neglect when the surroundings changes radically.  Either way, when winds blow against us, nosotros withdraw to either conform ourselves or conform our trading--and sometimes both.

A helpful stride inwards breaking negativity together with pessimism is to intend of your self-talk every bit self-coaching.  We are e'er talking to ourselves nearly performance, opportunity, mistakes, together with risks.  If nosotros thought that self-talk every bit self-coaching, nosotros tin flaming inquire the questions, "How good am I coaching myself?  Would I jitney soul else inwards this way?  Would I desire an actual trading jitney talking to me the agency I'm speaking to myself?  Is this coaching actually going to displace me forward?"

The essence of cognitive hold upwards is thinking nearly our thinking.  When nosotros focus on learning together with improvement, nosotros displace ourselves forward--in trading together with inwards our psychology.

Further Reading:  Coaching Yourself for a Better Psychology

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