Introduction
Louise Bedford and Jordon M. are back with another exciting episode of Mind Over Markets. In this episode, they dive deep into the topic of self-talk and how it affects our trading performance. Self-talk refers to the internal dialogue we have with ourselves, which can either be positive or negative. Louise and Jordon discuss the different components of self-talk and provide practical tips for overcoming negative self-talk to improve trading results.
The Power of Self-Talk
Self-talk plays a significant role in shaping our mindset and ultimately our trading performance. It’s the voice inside our heads that tells us whether we’re doing the right thing, doubts our abilities, or even boosts our ego. For some, self-talk is experienced as words, while others think in symbols or images. Regardless of how it manifests, self-talk influences our thoughts, emotions, and actions.
The Three Components of Self-Talk
According to Louise, there are three components of self-talk: personalization, pervasiveness, and permanence. Personalization refers to the tendency to blame oneself for mistakes and failures, using harsh and negative language. Pervasiveness is the belief that one failure or mistake extends to all aspects of life, leading to a sense of social humiliation. Permanence, on the other hand, is the belief that one’s failures are permanent and define their overall worth and abilities.
Personalization
Personalization involves using negative self-talk and self-abuse. Louise shares her personal experience of sometimes saying random negative things to herself, even when she’s alone. She emphasizes that we should treat ourselves with the same kindness and compassion we show to our friends, rather than being overly critical and harsh.
Pervasiveness
Pervasiveness refers to the belief that one failure or mistake affects all areas of life. Louise uses the example of thinking, “I fail at everything,” which can be debilitating and difficult to break out of. It’s important to recognize this thought pattern and challenge it by focusing on specific areas of improvement rather than generalizing failures.
Permanence
The third component of self-talk is permanence, which involves believing that failures are permanent and defining of one’s abilities. This negative self-talk can create a self-fulfilling prophecy and hinder growth and progress. Louise suggests adopting a growth mindset and understanding that failures are part of the learning process, not permanent character flaws.
Overcoming Negative Self-Talk
Louise and Jordon provide practical strategies for overcoming negative self-talk and improving mental clarity for better trading results.
The One-Word Mantra
One effective strategy is using a one-word mantra. This technique is derived from the weightlifting industry, where athletes use a single word to focus their mind and increase their strength. For trading, a mantra like “calm,” “consistent,” or “objective” can help block out negative self-talk and create a clear and focused mindset before making trading decisions.
Summoning a Mentor
Another strategy is to imagine yourself as your trading mentor or someone you admire in the field. By summoning their mindset and qualities, you can inspire and motivate yourself to make better trading decisions. This technique allows you to tap into their wisdom and experience, even if they are not directly related to trading.
Comparing Techniques with Successful Traders
Comparing techniques with a group of successful traders can provide valuable feedback and insights. By sharing trading strategies and discussing different approaches, you can refine your own trading plan and ensure it is robust and effective. Feedback from experienced traders can help identify blind spots and improve overall performance.
Awareness and Mindfulness
One crucial aspect of overcoming negative self-talk is being aware of it in the first place. Louise and Jordan encourage traders to pay attention to their internal dialogue and identify any negative patterns or inherited beliefs. By recognizing the source of negative self-talk, be it from previous generations or societal influences, traders can begin to challenge and reshape their mindset.
Don’t Compare Yourself in Terms of Popularity or Material Assets
Comparing oneself to others in terms of popularity or material possessions can trigger negative self-talk. It’s essential to remember that everyone’s journey is unique, and external factors do not determine one’s worth or trading abilities. Focusing on specific goals, values, and personal growth can help alleviate the negative effects of comparison.
Avoid Upward and Downward Comparison
Both upward and downward comparisons can impact self-talk. Upward comparison, where one compares themselves to someone they perceive as more successful, can lead to feelings of inadequacy and self-doubt. Downward comparison, where one compares themselves to someone they perceive as less successful, can lead to inflated ego and complacency. It’s important to strike a balance and focus on personal growth rather than constantly comparing oneself to others.
Conclusion
Overcoming negative self-talk is a crucial aspect of achieving mental clarity and improving trading performance. By understanding the components of self-talk and implementing practical strategies, traders can develop a positive mindset and enhance their decision-making abilities. It’s essential to be mindful of one’s internal dialogue and challenge negative beliefs that may hinder progress. By adopting a growth mindset and seeking feedback from experienced traders, traders can overcome self-doubt and unleash their full potential.
