6/4 – Psychology – quick step back for a bit more of an overview

Good work done on Friday – lots of thought/study/detail.  Today I am going to have a look through some of Chapter 2. But I am also going back over the overview-diagram to see where/how it all fits together.

Psych Overview Update

Questions I need to answer:

  • Typically, what are the emotional states that I am in most of the time?  During trading sessions, when I am actually trading? What emotional state(s) am I when I am working on the structure of the trading operation as a whole e.g. working on strategy development or working on psychology, or on tools development such as MT4 dashboards or checklists?  What emotional state(s) am I in when I am with friends, at the cinema, doing sport, drinking beers, chatting over coffee?
  • What behavioral patterns are linked to which emotional state(s)? Which emotional state(s) trigger what behavioral patterns?
  • Which behavioral patterns trigger the Proficient Trader to take control? Which behavioral patterns awake the Destructive Trader?
  • Can the emotional states and/or behavioral patterns be easily categorised/matched to my different trader personalities? Most likely yes.
  • What are examples of emotional states? I guess the list is endless.  How can I determine/assess my emotional state at any point in time?
  • Will thinking about myself in this manner ultimately crack me up or make me crazy?
  • Maybe the concept of a documented/structured trading strategy is a hoax.  Maybe it’s more about being fluid, reading the market, being adaptable and flexible?

I don’t know the answer to all of these questions (at this point) – however it’s good that I have realized that I need to answer them.  The fact that I have raised them makes it more likely that I will be able to answer them at some point.

Developing an image of the Trader Personalities…..

How do I want to “feel” when I am trading? => Further ways to describe the Proficient Trader

  • Calm
  • In Control
  • Alert
  • Focused
  • Fresh
  • Smart & Intelligent
  • Aggressive but not overly so
  • Disciplined
  • Confident
  • Ready
  • Analytical & Observant (added 9/4)

What feelings do I NOT want to have when trading? => Further ways to describe the Destructive Trader

  • Tiredness
  • Fear
  • Anger
  • Frustration
  • Hopelessness

I just realized that, without thinking about it, I listed the desired feelings as verbs, but I listed the negative ones as nouns.  It’s like I am saying “I want to BE like this, and I don’t want to HAVE any of that”.  I am trying to digest the positive things and make it part of me, and I want to disassociate myself from the negative ones.  Hmmmm, very interesting observation.

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One Response to 6/4 – Psychology – quick step back for a bit more of an overview

  1. Pingback: April’15 Trading Psychology Wrap & Blue Print for this month! | George's FX trading blog

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