Today I am Sharing a Case Study on One of My Student during our 1×1 Coaching How we undestood his Trading problem controlling His emotions .I decided to highlight these specifically, as I’ve found there are a number of common themes amongst struggling traders who I’ve worked with. Hopefully, by detailing their challenges and offering some action points, you too can take something away from this article to help you Decide
Bramesh : I have noticed that you have trouble controlling your emotions.
Sahil : I do and i have tried a lot but unable to improve.
Bramesh: Ok, let’s work on this. For the next three days, keep a list in your trading journal of all the things that set you off. Send me that list and then we will discuss it
I can’t tell you how many times I have had a conversation similar to the one above. Active traders deal with rejection as there trades get Stopped out. More you trade more, Rejection will come . If a losing trade sets you off, then this can affect your trades going forward.
You are in an temporary emotional state where you are not thinking as clearly as you can. You are angry, or frustrated, or disappointed. And then you make decisions that you normally would not. And take a big loss as result.
In short, you manifest trading data that does not reflect your ability.
Sahui , sent me his list of things that set him off. They were a typical list.
One of them was getting upset when he exited for a loss greater than he expected.
I suggested Sahil to work on Visualization. But What is Visualization ?
Visualization is a kind of mental rehearsal. Typically, traders will perform visualization exercises as part of their market preparation either before trading begins or during a break during trading.
Visualization is very effective. Your more likely to succeed if you have the right mindset. Having t
his enables you to view the market in a better state, no fear, greed, etc. All those emotions gone as you keep your plan in focus throughout the day.
One of the best ways to increase profits is to do goal setting and Visualizations in order to align the conscious and subconscious with making profits – Ed Seykota
Athletes, Entertainers, and elite traders use affirmations and visualization techniques for boosting performance and increasing success. There is scientific evidence that has documented the usefulness of affirmation and visualization techniques in improving performance.
Visualization is using our brain to create images of who we want to be, or act in real life or in live trading situations. With mental repetitions of the images, we reinforces the neural networks in our brain to create new pathways enabling us to make quick decisions in all situations and get a mastery over our trading.
Our brains are designed to deliver large amounts of pain when we experience loss, leading to discouragement and self-doubt This visualization techniques gives you the experience of intense loss and then, intentionally, to step into your Winning mindset.
Guided imagery
This technique can help you visualize positive scenes and images, which can help you relax, cope with stress or fear, and feel more at peace. It’s also a great way to boost your mood or unwind before bed.
How to do it
- Find a quiet area.
- Breathe deeply in and out for a few minutes until you are calm.
- Then visualize not getting out of a stock where you expected. In as much detail as possible, remember the last trade like this that set you off.
- Then expose the logic of getting upset. Something like if I let this upset me, then I will miss easy trades in this stock about to come.
- Then breathe in and out deeply again until you are calm.
- Repeat this process a few times
Goals visualization
Here’s a little secret about your brain: It can’t always tell the difference between something you’ve imagined and something that’s actually happened.
That’s partially why visualization works. When you visualize yourself achieving goals, you brain may eventually believe you’ve already done those things. This can help you feel more confident and make it easier to achieve those goals in reality.
How to do it
- Hold your goal firmly in your thoughts.Your goal centers on Following your trading plan, Exit when Stops get triggred, Booking at the target.
- Imagine yourself succeeding at this goal. Focus on your feelings in the moment. Add as much detail as possible to make the scene vivid and realistic.
- If doubts come up, such as “I can’t do this,” or “This just won’t work,” combat them with a positive mantra. “I can do this,” “I have faith in myself,” or “I have the strength to keep trying.”
- Focus on your breathing and your mantra as you visualize the scene of your success.
Controlling your emotions is necessary to recognize your trading potential. We spend 15 minutes every day working on omental weaknesses utilizing visualization exercises. You will not rid these
issues in one session. It takes weeks of repeated practice. But you can be better at it.
Below are few more Case Studies we have shared, Go Through them and Improve your Trading
Trading Student Case Study: “I am a loser!”
Case Study:How to Improve Trading Behavior
Case Study II :How to Improve Trading Behavior
Case Study: How Emotion affect Trading
How to Improve Trading Behavior