Key Points:

1. Distinguish between compassion and self-compassion.
2. The importance of separating behavior from identity.
3. Self-compassion is a crucial element for success in trading and life.

Summary:

In the seventh session of our group coaching series, Sean Sawyer focuses on the significance of self-compassion, especially for traders and investors. He begins by differentiating between compassion for others and self-compassion, highlighting the familiar struggle people face in extending the same kindness to themselves that they freely offer to others. This session encourages participants to reflect on who they have compassion for and challenges them to extend that compassion inward.

Sean shares personal anecdotes and examples from the SPP community to illustrate the impact of self-compassion on performance. He emphasizes the importance of distinguishing behavior from identity, using scenarios to show how negative self-talk and harsh self-judgment can harm one’s mental state and trading performance. An impactful quote from Sean sums up the session: “When it comes to self-compassion, a lot of times we’re the person we don’t like.”

The session also explores the psychological barriers to self-compassion, such as perfectionism and the fear of becoming too lenient with oneself. Sean reassures the group that true self-compassion involves accountability and acknowledging mistakes, not self-indulgence or pity. He stresses that practicing self-compassion can prevent destructive patterns like self-sabotage and help traders maintain a balanced mindset, which is essential for making sound decisions.

C.L.E.A.R. Mindset Connections:

Connect to the present moment and enhance your self-awareness with practical techniques.

• Use mindfulness exercises to identify moments when self-compassion is lacking and bring awareness to these instances.

Loosen your attachment to thoughts and emotions, and cultivate mental clarity and resilience.

• Separate your identity from your behaviors to reduce negative self-judgment.

Embody your core values and align them with your actions to foster authenticity and purpose.

• Regularly engage in self-compassionate practices that align with your values and goals.

Accept all the present moment offers, whether wanted or not, and find peace and strength.

• Recognize and accept your mistakes as part of your growth journey without harsh self-criticism.

Respond with decisive, informed action, transforming challenges into opportunities for growth.

• Use self-compassion to maintain a clear and balanced mindset, allowing for better decision-making in trading and life.

Actionable Strategies:

1. Practice Daily Self-Compassionate Reflection: Set aside a few minutes at the end of each day to reflect on how you treated yourself. Did you extend kindness and understanding to yourself, especially during stressful moments? If not, consider what you can do differently tomorrow to be more self-compassionate.

2. Separate Behavior from Identity: When reviewing your trading performance, remember the empowering principle of focusing on the actions and decisions rather than labeling yourself. For instance, instead of saying, ‘I’m a bad trader,’ reframe it as, ‘I made a mistake in this trade, and here’s what I can learn from it.’ This approach puts you in control and empowers you to learn and grow from your experiences.

3. Incorporate Mindfulness into Your Routine: Recognize the profound significance of using short mindfulness exercises to stay present and aware of when you’re too hard on yourself. A simple technique like deep breathing can help you pause, notice self-critical thoughts, and shift toward a more compassionate response, enlightening you about your mental processes and fostering a deeper self-awareness.

1. Set Self-Compassionate Goals: As you plan your trading or investment goals, include self-compassionate objectives. For example, set a goal to acknowledge at least one thing you did well each day, even if the trading day wasn’t profitable. This reinforces a balanced and resilient mindset.

Act Accordingly:

This session underscores the necessity of self-compassion for traders and investors, connecting it to better performance and overall well-being. By understanding and practicing self-compassion, participants can foster a healthier mindset essential for trading. Sean’s personal stories and practical advice make the concept relatable and actionable, encouraging everyone to start this transformative practice.