Trading is one of those activities that's "state dependent".
That is, if you are frustrated, angry and/or find a way to trigger the blood flows away from your brain's pre-frontal cortex, then you are not going to be able to "see" clearly. Rich perceptions available to you when relaxed can vanish remarkably quickly -- with stealth.
Having read
The Psychology of Trading by Dr. Steenbarger at least 5 times over the last 4 years or so, I've had the concept of state dependent perception at my mind's forefront for quite awhile.
To be a functional observer of myself and articulate "Hum, I'm frustrated now and I need to watch out for a mental lack of clarity" has not easy at all. In fact, it's been impossible over the years as I've done so much damage to myself and my trading account simply because I've NOT BEEN ABLE to observe my state shifts.
It was so embarrassing this weekend... I went to go see family over at the beach. We were late. I did not know the area well. I was frustrated. I saw the "no parking" sign and immediately went into the script of being fearful about getting a ticket. I looked at the sign numerous times but still decided to find another parking place due to the conclusion that we could not park here.
I totally missed that the sign also said Saturdays and Sundays only.
And we were there on a Tuesday.
When my sister later on candidly pointed out what the sign said, and I looked at the sign while in a relaxed state, I wanted to crawl into a hole.
Just like, so many times, how I've looked back at a trading day where loss limits were breached due to frustration -- and how much I wanted to crawl into a hole. The person who traded so destructively was "not me".
Becoming aware of the dynamics underlying why I did not see this parking sign clearly is a prolific conquest in my personal development.
Anytime now frustrated talk enters the picture during my trading, it's time to take a break : ) I value my implicte knowlege accumulated over the years and no longer want to trade without that edge!
