Sunday, December 11, 2011
A Brain Easily Swayed
Here is a pretty basic checklist that I now use as my process for leaving the house. Go ahead and laugh if you want.
I don't have any severe mental disorders and am reasonably intelligent. I even remember all of the items about 85% of the time.
So why have I resorted to the list? What does this have to do with trading?
Lots!
I've been monitoring myself to see if there are certain patterns when I'm most likely to get in the car and not be able to start it or get to the store and not be able to buy anything without my wallet. Most every single time it is the result of leaving the house in a state of mild frustration. Usually because I am running late or have a lot on my mind. Just a mild shift in my mental state has a profound impact on my ability to execute even very simple, basic tasks.
Now think about how frustrating trading can be. And how often we trade in various states of emotional arousal. With a slight shift in mental state, it's just as easy to enter a bonehead trade as it is to walk to your car without the key.
And then think about just how easy it is for your mental state to stray from its optimal state of functioning. Without you even knowing it!
And how difficult it can be to effectively self-observe vs. getting lost in feelings and emotions.
And think about how the majority of people go through life not even knowing that they make their decisions in various states of consciousness, each with its own parameters and consequences.
And people think that trading is easy.
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