Self Analysis of One Personality - Who Am I?

Finding the answer to this question is important to determining and evaluating variety of trading challenges. Being honest about ones short coming allows for solutions that create different results as they trade.

The power is in knowing a trader can admit to their weaknesses and be totally honest about, who they are. Unfortunately we all have our weaknesses and in other occupations it is easier to adjust them or cover them over.

Let’s say you have an anxious personality and that things have to be done right away. You are “quick minded” and learn very quickly. Well, this may come up now and than and even be an asset in another work environment but in trading it WILL have a direct impact on your trading entries. Rushing in and out of trades can seem almost impossible to control if anxiety pops up as an emotion. Slowing down and logically thinking about what to do verses being impulsive creates an atmosphere of being out of control.

So what’s a trader to do once they identify their shortcomings?

Firstly, new traders lack the experience and are aware that trading brings to the surface ALL their emotional baggage whether they want it or nor not. Second they’re unaware it’s having a direct effect on their trading and third they have no idea how to fix it.

Even though it is more prevalent with those starting a trading career even seasoned traders have emotional challenges they have yet to address. So here’s the key, be totally honest with, who you are, by noticing what’s happening and taking responsibility for it. Having a weakness is OK but the important part is to find a solution and work on what needs to be changed as soon as it’s uncovered.

Let’s go back to the anxious trader example. Most likely this past asset is causing entries that are too soon or entering not at the best price point, subsequently this will have an effect on the profitability of the trade. The feelings of frustration take over and this trader will need to work on patience in the moment when placing the trade right when it is time of the entry. So how can controlling the trade replace the anxiousness?

Remember there is always power in a question, especially when solving a challenge like this. Once you know the problem working it through to a solution is the primary goal.

So here are the questions that can help to uncover and solve the problems that the trader can take control and be more patient; Asking the questions as soon as they are in the precise moment anxiety is occurring, helps.

First begin by asking:

Am I being anxious?

Am I rushing into this trade?

Am out of control?

If all the answers are “YES” than begin the process of solving them coming up with answers. Here are a few examples:

Possible Answers:

1) Create a new “set up” of the entry indicators so it will uncover a more precise price point to enter the trade – this creates and confirms more emotional “certainty”. Also by looking into the details your mind is occupied with finding an answer and doesn’t have time to slip into anxiousness.

2) Place the entry of the trade in the system based on the results of the evaluation of the indicators. Place the entry at a specific price point BEFORE it happens. This will keep your mind disciplined to your trading strategy and keep you from rushing into a price you really don’t want. Let it execute automatically take the baseball approach to trading. “Wait for the right pitch” verses swinging before the ball comes over the plate.

This way keep all emotions are in check, certainty will flourish and your thinking is “in the moment” of the trade. The mind is answering exactly what’s really happening in the reality of the trade. This also takes the guess-work out and doesn’t give the mind any chance to let emotions a time to take hold, forcing a bad reaction.

Attacking the trade this way is what we all are searching for and “automatic” precise reaction verses a knee jerk reaction from an emotion. This is the primary reason so many traders gravitate to automated systems to use as they don’t give way to emotions and incorrect actions.

So bottom line is: questions can be your best friend because they temporarily put a stop to mind creating unwanted emotions. The basic reason is simple. When you ask your brain a question it has to stop and search around for the answer. Use questions, in your trading to stop emotions and also work each challenge through to a solution.

You will find this can have a dramatic effect on your trading. Work and control of the mind is our greatest power, use it to work in your favor.

….and great trading!

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