Key Points:
- Recognize the Influence of Trauma
- Implement Mindfulness Practices
- Understand the Importance of Value-Based Decisions
Summary:
In this session, Sean Sawyer leads a comprehensive discussion on managing the psychological challenges that traders face, particularly emphasizing the impact of trauma and life transitions. He addresses an SPP Community member’s questions about breaking bad habits, especially those reinforced by occasionally profitable outcomes.
Sean highlights the importance of self-awareness and understanding the underlying values that drive our decisions. The conversation then shifts to the broader topic of trauma, especially the lingering effects of the COVID-19 lockdown and how it has shaped our trading behaviors. An SPP Community member shares her experience of feeling lost and unsatisfied post-lockdown, compounded by her children moving out. Sean connects these feelings to the concept of inescapability, a critical factor in trauma, explaining how the prolonged lockdown has created a sense of entrapment for many.
Sean emphasizes the significance of habituation in trading, pointing out that while it can help us become better traders, it can also lead to complacency and avoidance of deeper issues. He suggests using the four steps and mindfulness practices to counteract these tendencies and maintain a healthy trading mindset. Sean also touches on the importance of addressing shame and compassionately understanding our behaviors to foster personal growth.
“Your brain is bullshitting you right now… Your brain is taking a dump. You’re turning around in the toilet, picking it up, scooping it out, and sticking it in your pockets. And you’ve come to this session with stinky ass pockets, and you’re asking me why you stink.”
– Sean Sawyer
C.L.E.A.R. Mindset Connections
Connect to the present moment and enhance your self-awareness with practical techniques.
- Sean emphasized the importance of using mindfulness and self-awareness to recognize and address the psychological challenges in trading.
Loosen your attachment to thoughts and emotions and cultivate mental clarity and resilience.
- By understanding the impact of trauma and habituation, traders can develop resilience and mental clarity, making more informed decisions.
Embody your core values and align them with your actions to foster authenticity and purpose.
- Sean stressed the importance of value-based decisions in trading, urging traders to align their actions with their core values for better outcomes.
Accept all the present moment offers, whether wanted or not, and find peace and strength.
- The session highlighted the need to accept the psychological impact of past events, like the COVID-19 lockdown, and work through them to find peace in trading.
Respond with decisive, informed action, transforming challenges into opportunities for growth.
- Sean encouraged using structured approaches, such as the four steps, to address and overcome trading challenges and turn them into growth opportunities.
Actionable Strategies:
- Regularly practice the four steps to maintain psychological health in trading.
- Engage in mindfulness and self-awareness exercises to stay present and grounded.
- Align trading decisions with core values to ensure authenticity and purpose.
- Address underlying trauma and psychological issues to improve overall trading performance.
- Use public platforms like Twitter to share and process trading experiences, fostering transparency and accountability.
Act Accordingly:
After a deep dive into the psychological aspects of trading, the author emphasizes the importance of self-awareness, value-based decisions, and addressing underlying trauma. By implementing these strategies, traders can improve their mental resilience and make more informed, authentic decisions in their trading journey.