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they also believe that hard work is required for success and their methodology (which took a lot of hard work) is creating losses, it represents not only a threat against their approach and their equity, but also a threat against the belief that hard work brings success. |
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This leads us to the third most common reason that traders get angrytheir beliefs are being violated or not being met. When a methodology that works on paper fails in practice, traders experience ever-increasing levels of anger and fear. This is because not only are their expectations of profit and their highly valued methodology being violated, but the underlying beliefs that their methodology is based upon are also being trashed. How could such an approach be so successful when back-tested and yet such a loser in real time? As their level of confusion and fear increases, the intensity of their anger will also increase as they unconsciously try to control the situation and reduce the fear. Unfortunately, the market doesn't care and is immune to human anger and any efforts to control it. |
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In short, traders experience ever-increasing levels of anger because their level of understanding is insufficient to comprehend the demands of the market. They do not understand how to control their beliefs or how to increase their virtues. As the intensity of their anger increases, it further diminishes their ability to accurately perceive the market. |
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Whenever you get angry, you are remembering past references where by getting angry you were able to control (or at least influence) the outcome. In all probability you attached a certain amount of significance to being angry that helped you favorably affect the outcome. The only problem is that when you are trading and you get angry, instead of gaining some control, you lose all control. The market doesn't care if you are seething with anger or totally joyous. |
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When you are angry, you lose any semblance of objectivity regarding the market. Consequently, as the intensity of anger increases, the level of objectivity decreases. What causes this decrease in objectivity? What controls your perceptions? That's right, beliefs. Can you remember a time when you were very angry about either the market or something else altogether? What were you focusing on? What beliefs were you linking to being angry? Why did it feel like you were justified? |
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In order for you to experience anger with less frequency and intensity, you must change the beliefs that you have about anger and the beliefs that you link to anger. As you know by now, the way to do so is to ask questions to create doubt about the validity of your original belief, then decide to (1) keep the belief as it is, (2) modify it, or (3) discard it and adopt a new belief that empowers you. Many traders have linked a belief regarding |
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