Anyone can probably guess that I love this topic and any related to the mental side of trading and performance.
The mind is the same as a muscle, if we do not exercise it we will forget to do certain things, or even how to do certain things.
When we workout for a long period of time, over many months or years, we see the results physically with changes to our body. When we workout the mind over time, we start to see changes in how we respond to things or interpret them, thus affecting the reaction we have and the result.
By regularly meditating, focusing on our mind and making a conscious decision to exercise it, the results will compound over time and the things that used to be difficult now come much easier.
I do believe that yes, under many different circumstances we need to change our trading strategy and how we execute it, but the mind piece stays the same.
We still have to be patient, yet execute at different speeds depending on the market.
We still need to remain objective, but experience situations that are more difficult than others to execute decisively.
We still need to allow the market to give us constructive criticism, sometimes more often than usual.
The ability to maintain the core practices on the mental side will always, in my opinion, remain the highest priority. I know that if I rely on that process I’m smart enough to properly adjust my risk in volatile markets or adjust stops and take profits.
It is very easy to be in a flow then have the market change, which could be the worst environment for your style, and miss that the market changed or you’re trading outside of your optimal times. When that happens, often we fall back into negative dialogue or feeling defeated when we are doing the exact same thing as before.
Instead, if we stop and ask things like:
Is the market trading in a way that is conducive to my style of trading?
Am I following my system or did I fall off the wagon at some point today?
Based on what I’m seeing, removing yourself from trading and just observing the market, would I advise myself to be trading now?
When it comes to psychological case studies on things like priming, associations, beliefs, this is where I’m so intrigued. I’m no expert by any means and am constantly searching for things like this to improve my cognitive thinking and awareness.
I’ll post some brief examples of how I think real-world case studies can be applied to us.