Trading psychology: We are what we repeat in our lives

We are what we repeat in our lives. Perfection is not a one-time achievement, but a habit.” – Aristotle

In one of the översättade articles by Nial Fuller (the Importance of regularity in the professional trading), we learn that the key to success in handelsvanor is correct habits. The systematic way to train this is shown as a great force. This is the power that can flow in each one of us. But only a few can fully use it. He suggests in this text how to do it. Today I would like to complement this article with a psychological background and offer further solutions.

In psychology is said that repeated thought or behavior takes perseverance and is permanently rooted in the repertoire of human function. Some of these common reactions is positive (t.ex.. Regular rhythm of sleep and wakefulness, healthy eating, physical activity, systematic ”good” relationships with others), and some unfortunately not (t. ex. avoid or try to distance themselves from the problems of everyday life, for example, by drinking alcohol).

You can think of why a man in general support the negative habits if he does not earn anything on it. Well, many habits are formed of consciousness, often in a very early age. Then, they can be a way to deal with the current difficulties. The problem is, that in our life is being used these mechanisms automatically, even if the situation is completely different.

These habits require that we first recognize them and then overloading them. On the conscious level, it is a bit easier to distinguish them – they contain thoughts such as ”I am who I am”, ”it’s fine with me” ”what good things can happen in my life”, etc., Such thoughts often have negative beliefs about the lack of our lives. Such common thinking leads to frustration, anger, decreased self-esteem, depression. But you may think differently. Optimism is that habits can be changed and developed to become more adaptable. However, this requires effort, determination, consequences …

How to change habits

To change habits is a bold commitment. It takes effort and goes out of his ”comfort zone”, that is to say, safe space even if it is limited by the negative thoughts and habits.

There are many ways to change your habits. Without a doubt, the first step is to identify them. There are various tools that are available to identify different patterns of behavior, thoughts, and experiences. One of them is Maxie DISC. This is a test me 28 questions, which take approximately 20 minutes and can be performed on any device at any time. The conclusions of the report (the dominant pattern of behaviour, response to stress, the difficulties, the preferred method of communication) are then discussed with the consultant in order to facilitate the understanding and application of new solutions in life.

At a more advanced level, we have the behavior of (t.ex. Control of negative automatic thoughts and modifying beliefs, beteendeexperiment.). The actual psychotherapy allows a lot more – t.ex to understand why I act in the same way or to commit the same mistakes, and thus allows the only permanent changes (not just the conscious level). We are also aware of the small step approach called the Kaizen method – useful and encouraging to work with little success at a time.

It is good to practice positive habits, as they facilitate the concentration and to achieve an optimal state of mind. When it comes to Forex, you may think that the implementation of the positive habits supports the consequences, and those are important if you want to earn systematically.

Where should I start with?

First, look carefully at yourself. Try to write down your own habits, break them up into two categories (positive and negative), and then steadfastly hold onto them desirable. When it comes to destructive habits so I urge you to reflect on this if you can find another way to meet this need, which currently meets this habit … When it comes to trade and the opening up of positions that are not worth to be opened for the trader are bored, the best solution to be a deviation from the computer and you will try to do everything else, which can angagera you.

It is important to remember that a habit is a process, not a jumping change and it takes time to create a new habit. It seems obvious that the simpler habits develop faster. For a long time was considered that the time to develop a new habit is about 21 days. We can believe that the time needed to change is only three weeks … the Reality however is a bit different. Researchers at University college in London conducted a 12-week study with 96 students.

The students chose a new habit that they want to educate and report on a daily basis if they had done their job and how much their automation was (when time passed). Habit is defined as ”behavior manifested by reflex” – I understand that there is a certain degree of automation.

Based on the results estimated that the average time spent to develop the new habit is 66 days, but the spread covers a range of 18 to 254 days. For more information on this study, check out http://onlinelibrary.wiley.com/doi/10.1002/ejsp.674/abstract. The most important thing that will help you develop a new habit is in my opinion, motivation and to a large extent, it is precisely this factor that plays the biggest role in the automation of activities and the sustainability of this process.

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