1. Mindsets-
Decisions are taken by either the Higher mind (Frontal lobe) or the Fear based mind .
When decisions are informed by our higher mind, they are more likely to lead to positive outcomes. decisions driven by survival instincts from the past can hold us back.
Primitive mindsets are characterized by a feeling of urgency, high stakes, rigidity, and repetitiveness.
The moment that real capital is put at risk in trading, everything changes ,Trading goes from a logical exercise to a game of emotions.
And after you experience a loss, your brain will start anticipating potential losses instead of gains.
Ever experienced fear of entry in a trade when you had a streak of losses previously, then you have experienced the power of Emotional mind over the rational mind.
2. Emotional Hijacking -
Emotions are not psychological they are biological in nature, that’s why they take over your logical ability and you cant control them even when you want.
Your brain’s prime directive is self-preservation – keeping you alive.
It will do anything to accomplish this mission, including lying to and deceiving itself.
Because of our ancestors we also have a caveman brain.
As a trader you experience this problem every day when emotion runs over logical thinking in the heat of a trade.
This development became wired into the emotional brain as pattern,
so as soon as cues from the environment demonstrated threat to life the brain fired up the emotion as precursor to taking action instinctually.
So How this work is that the information first filter from the Emotional brain, Here it is evaluated by the hippocampus.
If it sees the information vulnerable then it is immediately sent to amygdala the Fear center of the brain,
without sending to the thinking center of the brain and that’s why you feel all the emotions even physically in your body like faster breath, sweat.
This is called an emotional hijacking.
3. How to correct this problem-
As long as you risk capital, your brain will view uncertainty as a dangerous occurrence in your environment.
Because emotions are biological, they also have a signature that includes breathing style and muscular tension.
So the best thing to do when you see emotions evolving is to not
resist the emotion, or using positive affirmations to control the unwanted emotion.
We have to accept that we are feeling an emotional surge, take deep breath and relax.
When the emotion is confronted by a change in breathing style and muscle tension, the emotions of fear and anger cannot maintain themselves. You are literally cutting off their fuel.
And, We have to change the self sabotaging beliefs that we obtain throughout our life.
Trading is a demanding endeavor. It is the most powerful self-development venue that you will ever find.
Your weaknesses and your fears will be revealed.
Lastly, You have no control over whether you will win or lose – but you have enormous influence over the beliefs that drive the performance of your trading process.
Thanks for reading till here.
