Thursday, March 12, 2009

Managing emotions


«Anyone can get angry - it's easy. But to be wrathful at the right person, at the desired degree, at the right time, for a particular purpose, and relevant way - that's the difficulty ».
Aristotle

Really. And the same can be said about the fear and anxiety, repentance and hope, greed and delight, and all the other emotions that are inherent in trading.

Traders often say that they do not want to have any emotions when trading. They say they want to be perfectly calm, like a machine. Fortunately or unfortunately, the traders, as any drugoye, not machines. Clear all emotions - would destroy the soul and destroy intuition and sixth sense as to eliminate all feelings of joy and laughter. If you could remove their emotions from the knowledge, you just put them, driven deep inside, where they will manage you without your knowledge. You would be amazed to see how you do things that are not going to do.

Are we hopeless in front of their emotions?

Of course not. Emotions give us information. We can obtain this information and make necessary changes or to take the desired action. We can interpret the emotions in ways that help us. We can reduce the intensity of emotions. We can change one emotion to another.

I like to think of emotions as the energy for movement. Conscious and not conscious thoughts energized. This energy affects our internal and external world. As Carl Jang said: «There can be no transforming of darkness into light and of apathy into movement without emotion». We can use our emotions as a means to advance our trade process. But we must learn to interpret them, guide them and reduce them.

There are three basic ways to change emotions:

First, we can change our emotions by changing the object of our concentration. This brings great results. What we focus, it becomes our reality. We are considering taking the loss, or we see the chance of taking profits?

Second, we can change our emotions by changing our beliefs. Our beliefs act as filters that we see, thus influencing the information that we admit to consciousness. Our beliefs influence the interpretation that we give the facts and events. If we are confident that we will lay down the likelihood in our favor, we will not go mad because of the individual losses, because we are confident that we will make money over time.

Third, we can change our emotions by changing our physiology. This is generally true that breathing, facial expression, body position, tone and pace of voice impact on thoughts and emotions. What is usually not understood - is that the physiology creates thoughts and emotions. If you are trading sitting at the edge of a chair, shoulders ssutuliv, szhav jaw with one's lips, seized a hand in the mouse, and stifling breath, you'll worry about what should happen.

The importance of concentration

As mentioned above, on which we concentrate, is extremely important for our emotional state. So, what do you concentrate during a trade is not only the object of your reality, but also your understanding of the actual reality, and therefore affects your interpretation of events and, of course, your emotional state. This in turn affects your behavior. The decisions have an emotional component.
What do you think? You are looking at the possibility of loss? You see the chance of profit?

Those who look only to the possibility of loss, or will hesitate too long at the entrance to the market or pass the deal. If they did enter the market, they take away their profits too quickly.
Those who look only at the probability of profit, can not protect themselves from losses.

You told a story about this deal? You told me a story about trade in general? Your story will affect your concentration. You will look for evidence of the truth of your history. You will have a tendency to underestimate or miss all the contrary evidence.

A particularly effective way to direct your focus is on task. When you ask a question, you set the perception of an object that requires a response and takes the truth question.

You ask, «What if I lose? What if I'm wrong? What if the transaction does not work? »Now see where your imagination should go. It should go to the effects of the loss. You'll be a bad feeling. You lose your courage. You will fluctuate.

You ask, «that if this deal will bring more profit? What if this deal actually goes to my goal? What if the market will do what I expect? »You make a deal, and will feel confident.

The truth is, a small but: just thinking about winning is not enough. You can exceed the allowable size of the transaction. You can not put the protective stop order. Instead, you should focus on probabilities. Ask yourself, «what is the likelihood? With my methods say I do? »It will keep you up to start ringing. This will force you to act when receiving a signal.

Trade - this balancing act between the extremes. We must focus on profit and loss and balance between them. We must focus on the probability of our methods. We must focus on information that enables us to market. And the only completely reliable information that we receive - it is price action.

Yet, having said all that, really important to look optimistically to the future, even if we accept the validity of current news and market action. What if you could learn to control your concentration, so that your emotional state supports your actions in the trade?

The importance of physiology

The thought affects the body - this is true. More surprisingly, that the body affects the mind. The quickest and most straightforward way to change your emotional state is to change your physiology. Under the physiology I mean the body position, breathing, facial expression, as well as the tone and pace of voice.

We all know that when we are happy, we smile. But how many people understand that when they smile, they are happy? Actors are amazing because of Physiology. Simuliruya sobbing, very soon they find that they actually feel emotions, accompanied by weeping.

People experiencing depression prescribe smiling half an hour a day during their depressive phase. Approximately 80 persons muscles drive the blood into the brain, and the smile it increases blood circulation. Ulybka also alters the level of oxygen and the level of excitation of nerve endings.

What is your physiology when you sell? You sit on the edge of a chair? You are looking askance and compress their jaws? You are a nation seized in the mouse? Does your body tense? As a result of this emotional state will be increased tension and nervousness. Or your shoulders and chest sognulis, you interrupted breathing and your mouth a little bit slightly? This physiology would lead to depression, despondency or despair.

If you find yourself in a negative mental and emotional state during a trade, stand up and change their physiology. Lift the shoulders, raspravte chest, deep breath and talk with them in confidence and a calm tone.

Each of us has the superiority of physiology - physiology, which is associated with creativity and flexibility. This physiology may change due to the situation, and it can also affect the situation.

Think of something that you do easily and confidently. Imagine yourself in this situation. Put yourself in the physiology of the situation. Pay attention to your position, facial expression, breathing, and your voice tone and tempo. Now imagine yourself in the trade and suggest that this is the same physiology.

In the midst of trading, you no doubt will return to its old, sometimes harmful physiology. Once you find it, change it to your physiology superiority. The more you do this, the sooner it will become a habit and your natural physiology.

A simple physiological manipulation is an effective tool to manage its internal state. As a trader your physiology to determine the effect on you. This is not just some lengthy reflection - an important part of your general condition, which affects your thoughts, feelings and actions. Use it for your own success as a trader.



Ras Roosevelt

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