What you need to know about emotions and Trade
In the course of evolution, each dealer (if they are honest with themselves) experienced the fear of incapacitate. How it happened – and what continues to happen – often remain a mystery to the merchant. Before the operator knows, this has been kidnapped and fear takes its toll on the state of the trader’s mind, his ability to operate effectively, and ultimately, your trading account.
For the merchant, it often seems that the fear came from nothing. Otherwise the problem of the merchant with fear (or its cousin, greed) would be easy to solve. If not addressed, the fear remains in place and constrains the ability of merchants to negotiate effectively. However, there is an emotional process in question (common to all emotional states), with training, could have been interrupted. Unfortunately, the trader has no knowledge of this process of emotional hijacking. The excitement and seized him and he is in doubt, distraction, trade retaliation, or impulsivity. And he begins to doubt that the trade court.
The good news is that there is a defined process for an emotional assault. Any emotional process has a signature that is associated with it. There would have been telltale signs of emotional hijacking, and a way to break, if the dealer knew what to look for and had developed an awareness of being aware of how fear triggered, speeds up and overwhelms the mind quiet discipline required to trade effectively. You can not get rid of emotions, but can be trained to better understand and manage. It is from this training effective spring trade.
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Case report:
Jim has been negotiating for seven years. He has learned the methodology and traded well until about two years ago. Since then, trade has been problematic. Fear began to emerge as traded and found hesitation when evaluating productions until the accumulated emotional pressure. Then jump in a trade impulsively. This flip-flop behavior continued until Jim decided to return to trading of paper – to reorient their trade and get his edge back. Of course, paper trading, the risk is removed from the equation of its edge.
Jim explains: “The challenge is that I have not been able to simulate the same emotional feelings when paper trading like when I’m live trading. I can not seem to create the fear you experience when direct trade. But, you know, something strange happened when I recently went to a casino with my wife. I sat at a slot machine next to him and fell at $ 20. I thought it was just me and not entertaining game. After a couple of minutes of play the team could feel the feeling exactly the same happens when I’m evaluating assemblies. My heart rate began to rise, my hands began to sweat and I could feel droplets of sweat dripped slowly below the armpits! There I was, has shot back to my room looking in assembly operations and trying to pull the trigger. I was frozen. This is exactly the same emotional feeling which has been plagued by my trade in recent months.
The first time was launched (7 years) never did. Then about 2 years ago I lost a chunk of my capital and wiped basically until I had the opportunity to build my trading account again. And I’ve had a couple of losses many children in the last 6 months as well. I started to go downhill after that. Now I have no doubt. I do not understand why I can not get back my trade advantage. I see a connection between the experience I had in the slot machine and what is happening in my trade – but I do not understand.
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Threat, Brain, Mind and meet in the operating room
Jim just had a conditioned response that has spread from one domain of experience to a broader context. He had been trading successfully for several years until they experienced a sudden loss of a major capital while trading two years ago. It is this sudden loss and pain in the memory of that loss Jim’s brain is programmed to avoid them. For the survival brain, this sudden loss of capital represented a threat to the existence of the merchant. And the mandate of the brain is the construction of a pattern of evasion of the pain associated with loss of capital. This part of the brain of the trader does not distinguish between the loss of life and loss of capital. For him, all the painful emotional loss as a threat to life.
Then, the brain develops a fear response to threat – a significant loss of capital – as a way to avoid losses in the future. This is the basis of the traumatic memory and adaptation as part of a conditioned response. At this point the problem is both a biological problem, since it is a psychological problem. And they must be treated together. It’s the same process that a child experiences when you learn to never touch a hot stove again … after the traumatic pain. And Jim’s sudden loss of an important capital was traumatic for him. Imagine having to tell his wife about the loss and negative impact on their ability to survive in the world of no money. This is the implementation of an automated response, stress reactive.
Then, the brain constructs a neural pattern of avoidance as a solution to this problem. That is embedded in the development of patterns and pattern recognition mechanisms of the brain. This is the conditioned response and recognition of patterns that the brain organizes. And Jim does not help your cause. After the traumatic loss of capital and the fear response, Jim tries to ignore the fear-based emotional pain and to boost the response to deep-seated fear of the threat by the sheer brute force – not a good idea. This only exaggerates the strength of the embedded pattern. As exposure is kept to a perceived threat, the survival brain fear response generalized specific environment where the pain really happened to any stimulus that risked capital. This is how it has skyrocketed to the fear response in the casino, while risking only $ 20. In his unconsciousness, he saw this as a form of entertainment. That is not how your brain is conditioned to react survival when capital and risk incurring the emotional pain.
Significant pain has been wired to be associated with the risk now – and hijack the state of mind if not interrupted. Not knowing how else to deal with him because he does not understand how the emotional brain and mind are intertwined psychological, activation of fear is so great that Jim has to retreat back to paper trading in an attempt to “redirect” their mind. Unfortunately, the brain was never designed to distinguish between biological fear and uncertainty management. And Jim, like many dealers, has no idea about how to deal with that. To Jim incurred a capital loss traumatic never activated the level of primal fear that overwhelms the rational mind. But as a person develops an irrational fear of all dogs after being bitten by a dangerous dog, now the mind of Jim has developed a self-limited fear of loss that taints the edge used to have on trade. This is where neural circuits meets-mind.
Calming the raging sea of emotion
Before you get to change their fear of a new type of loss that now corrupts it used to commercial advantage, Jim will have to learn to handle the excitement of the emotion of fear and avoidance response to the threat. Fortunately you have an idea how to do this.
In the casino actually becomes a witness to the excitement of fear. This is a part of the emotion of fear that can be trained to stop within the framework of emotional regulation. Excitation occurs before the emotion of fear takes over the mind of the operator. This is Jim’s description of the excitation of the emotion of fear: “After a couple of minutes of play equipment that could feel the feeling exactly the same happens to me when evaluating productions. My heart rate began to rise, my hands began to sweat and I could feel droplets of sweat dripped slowly below the armpits! “
What I did not mention is that your breathing becomes shallow and rapid. Breathing actually started before the rest of the excitement of fear. This is important because respiration can be used to regulate the activation of an emotion – not control it, but working from overwhelming merchant’s account. This is because breathing is a tool that can cool the escalating excitement of the body’s fear response to a threat. Remember that your capital loss is associated with large loss of life in primitive emotional brain. Since fear is a sign of breathing that is part of the excitement, breathing can also be used to manage and alter the power of the fear response.
Through the development of bellows breathing as part of the management of your fear, Jim is able to calm his fear down. It is still there, but now it is viable and a very different mentality now possible for him. It is through the calming effect of breathing and relaxation that Jim started working with this traumatic built self-limiting beliefs embedded in their fear of loss. Now you can do the emotional work needed to rebuild self-limiting beliefs that have taken over their trade in the last 2 years and claim their belief in their commercial advantage. Emotional regulation is not the Holy Grail that changes in self-limiting patterns and beliefs. What training do you give encouragement tool that allows you to calm the fury of an emotional hijacking down, so you can begin to develop the psychology of peak performance. Before that fear is tamed and re-understanding, it will block their potential as a trader.
Once that fear does not sweep your mind away, a whole new world opens. You can actually begin developing the mind for peak performance trading. In the same way that the consciousness of his tune on the fear was fear-based thought, conscience can be adjusted in the most powerful emotional state of the discipline, patience, courage and fairness. Out of these emotional states is a very different mood of fear-based perception and thought – this way of thinking is beyond doubt and momentum, but opens the possibility of negotiating maximum performance.
The market uncertainty continues, but the mentality is very different. Instead of hiring the uncertainty of thinking based on fear, uncertainty is approached from a sense of calm authority. Each state of mind opens and closes the possibilities of performance. One reduces the chance of success, while the other increases the likelihood of success.
The Take
The purpose of this article is to show how fear creates predictable patterns that govern the emotional nature of a trader (and therefore their performances). And understand that the trader learns to handle the fear response. Now he has begun to develop valuable tools and skills to change your relationship with fear and uncertainty. Learn this is an important step toward mastering your emotions and the inner game of negotiation. You have to be equipped to build a peak performance state of mind. The first step in this process is the management of emotional state. Only then can access the mind. It is in the mind that beliefs and self-limiting patterns of permanence. This is also where many traders fail because they lack the tools and skills to work with their emotional turmoil and kidnappings. Effective negotiation is worth it. Developing the skills and tools is the emotional work that will have to invest to achieve this goal.
