Summary
In this episode of the Mind Over Market segment, the hosts discuss the concept of the “seven reasons why” and share their own personal motivations for trading. They also explore various psychological research findings that can be applied to improve trading performance. The hosts touch on the premortem method, self-worth psychology, and the role of hope in trading. They emphasize the importance of understanding oneself and implementing strategies that work best for individual traders.
The Seven Reasons Why
The “seven reasons why” is a concept that encourages individuals to reflect on their true motivations for their actions. In the context of trading, it prompts traders to ask themselves why they are trading and to delve deep into their reasons. By repeatedly asking “why” at least seven times, traders can uncover their ultimate motivation or “reason why.” The hosts share their own reasons why – Jordan’s reason is power and control over his life, while Louise’s reason is to be a role model and have the freedom to live life on her terms.
The Premortem Method
The premortem method is a technique that involves imagining a future scenario where a project or endeavor has failed miserably. The goal is to identify potential reasons for failure and develop strategies to prevent them from happening. Louise shares an example of how she used this method when starting her podcast. By anticipating potential challenges and developing an action plan, she was able to navigate those challenges and achieve success. The hosts discuss how traders can apply the premortem method to identify potential pitfalls and develop risk management strategies.
Self-Worth Psychology
A study conducted by Harbor and other researchers found that individuals with higher levels of self-worth were better able to evaluate threats objectively. They perceived threats as being further away, allowing them to approach them with clarity and confidence. The hosts discuss the importance of boosting self-worth in trading to help traders evaluate risks more effectively. They suggest strategies such as regular communication with a spouse or trading partner, setting clear trading plans, and establishing accountability measures to prevent excessive losses.
The Controversy of Meditation
The hosts address the popular belief that meditation is a cure-all for various aspects of life, including trading. However, they highlight that around 17% of individuals may respond negatively to meditation, experiencing heightened anxiety and depression. They emphasize that meditation is not a mandatory practice for successful trading and that traders should explore different techniques to find what works best for them. Jordan shares his personal experience with meditation and how it did not significantly impact his trading performance.
The Role of Hope in Trading
The hosts discuss an experiment involving rats that highlights the importance of hope in overcoming challenges. Rats that were given a glimpse of hope, even after experiencing adversity, were able to persevere for an extended period compared to those without hope. They emphasize the need for traders to generate hope by envisioning their future success and using it as a driving force during difficult times. Jordan shares his own motivation of envisioning a perfect day in the future to keep him motivated and resilient.
Conclusion
The hosts conclude the episode by highlighting the value of understanding oneself and implementing strategies that align with individual preferences and motivations. They emphasize the need for traders to explore different techniques and find what works best for them. By incorporating psychological research findings into trading practices, traders can improve their performance and navigate the challenges of the market more effectively.
Want to see more from Louise Bedford?: Mind Over Markets: Defeating Negative Self-Talk
Want to watch the video?: https://youtu.be/ICLW2hclMdM
