Chapter 5 - Reinventing the Self: Creating a Trader's State of Mind
This bundle of beliefs, perceptions & biases we call conversations in the mind are what determine how we trade. These elements must be brought into awareness, examined & reorganized.
The key is to move from a belief system that is galvanized on not losing to a mindset that is focused on managing risk so that the probability of success is in your favor.
Changing beliefs is not a mechanical process where you can take part off and add a new one...you have to grasp that you have to disrupt the biology of pattern or the old historical belief will reclaim perception - IE why diets fail - overeating is merely a symptom not the problem.
Cannot focus on "not losing" rather on "maximizing profit"
To master the market; you will have to master yourself. You cannot control the market, but you can learn to control yourself.
As with the saying it is not what happens to us (as this is often out of our control), but how we react to what happens to us ....in trading it is not what the market throws at us, but how we can react to what we are being thrown...
All emotions, including our most primitive emotion which is fear, have a particular breathing style attached to them. Most people hold their breath or start breathing faster... yogis & Buddists were able to reduce stress levels (even blood pressure & other measurable traits) through breathwork. This is the 1st step for the trader - the breath work. You can begin when you "notice" a change in breathing, but as you move further along as the "observer of self" you will get to know your triggers & can implement a bellow breathing framework to begin when you are about to engage on one of your triggers. IE - you hold your breath when you enter....if you know this - start breath work when getting ready to confirm entry and continue until "out of the weeds" with this trigger. Beliefs will also need work, but breath work is a very powerful step 1.
If breath not managed under stress - air supply needed by brain is compromised and this leads to a fight/flight response.
80% of illness is related to stress. Vast amount of people (including traders) breath in a way that supports stress.
Diaphragmatic/bellow breathing - rote training - 10 breath per session and keep increasing it... practice multiple times per day throughout the day - you will see results quickly...practice when trading so your brain starts building the habit, but also practice outside of trading.
Safe Place - explain what it is and examples... utilize 5 senses