Every decision we make is informed by emotions, whether we acknowledge it or not. Emotions act as guides, nudging us to pay attention to certain aspects of a situation. For example, excitement may drive us toward opportunities, while fear can warn us of potential risks. Research by Antonio Damasio demonstrates that individuals with impaired emotional processing struggle with decisions—not due to a lack of logic but because emotions are critical for prioritizing options.
ACCEPT all the present moment offers, whether wanted or not and find peace and strength.
The Discipline of Value-Driven Action
Discipline is about making value-driven choices, even when you are in discomfort. It is a practice of committed action that aligns daily decisions with deeper values and long-term goals. Psychological flexibility allows you to navigate challenging emotions without being controlled by them.
Discipline is often misunderstood as rigid control or suppression of emotions. Instead, think of it as the empowering ability to align actions with your core values, even when your emotions or impulses threaten to derail you. This reframing emphasizes action and intentionality, instilling a sense of personal integrity and resilience, and empowering you to take charge of your life.
Overcoming Strategy Hopping in Trading
If you are reading this, you’re likely familiar with the frustrating cycle of strategy hopping—switching from one trading strategy to another and never settling into a consistent approach. Many traders face a common issue, but what drives this behavior, and how can you break the cycle? In this guide, we’ll explore the underlying causes of strategy hopping, why it’s so tempting, and actionable steps to help you develop a disciplined approach to trading.
Is There an Upside to Avoidance?
Avoidance deservedly has a bad reputation and is a barrier to personal growth and success. However, there’s another side: when used intentionally, avoidance—what we’ll call “Stress Pivoting”—can be a powerful tool for regulating emotions, conserving energy, and maintaining focus.
Why a Trading Psychology Plan is Essential
Mastering trading requires a robust trading psychology plan beyond technical skills and market analysis. This plan tackles the mental aspects of trading, equipping you with strategies to regulate emotions, maintain consistency, and improve performance in unpredictable environments. While market fluctuations may be uncertain, your mental preparation doesn’t have to be. Explore why a trading psychology plan is crucial and how it can anchor your mindset.
Leveraging Contextual Trading Psychology Pt. 2
Retail trading offers flexibility, yet it brings distinct challenges that differ from those institutional traders encounter. Lacking the organized and resource-abundant settings available to institutional traders, retail traders frequently find themselves in unpredictable circumstances. The Sound Psych Process introduces a novel strategy by merging principles of functional contextualism, enabling traders to enhance their environments and cultivate a mindset that promotes resilience and performance.
State Dependant Learning Matters
Real-world trading conditions can involve high market volatility, sudden price fluctuations, or unexpected news affecting the market. Learning strategies or practicing trading in a calm environment is helpful, but it doesn’t translate effectively when faced with these high-stress conditions. The Sound Psych Process leverages real-time trading to improve self-awareness and decision making.
Performance Killers Pt. 4: Overcompensation
In my years of experience as a trauma therapist and performance coach, I’ve observed that overcompensation is a common, yet often overlooked, coping strategy—especially in high-pressure fields like trading. Overcompensation, like avoidance, is a response to discomfort, but instead of retreating from uncomfortable emotions, individuals attempt to overcorrect by doubling down on behaviors that mask their perceived weaknesses. For traders, this can manifest as taking more significant risks to recover losses quickly or making impulsive decisions to assert control. Unfortunately, overcompensation creates instability and reinforces the very patterns it attempts to counteract.
Performance Killers Pt. 3: Avoidance
Avoidance is a natural but often unhelpful response to difficult emotions or situations. Initially, it may seem like a quick fix—allowing us to dodge discomfort and protect ourselves from stress. However, avoidance can become a deeply ingrained behavior that limits growth, traps us in negative emotional cycles, and undermines our ability to perform effectively in various areas of life. Today, we explore the roots of avoidance, its long-term effects, and how overcoming it can lead to improved performance.
Performance Killers Pt. 2: The Weight of Guilt
Guilt is an emotion many traders face, often surfacing after a significant mistake or missed opportunity. It’s not just a fleeting feeling but is deeply ingrained, usually rooted in early life experiences where personal responsibility and self-sacrifice were overemphasized. Traders with a strong sense of guilt may feel they’ve let themselves or others down, fueling a cycle of overcompensation that, although productive in the short term, eventually leads to burnout and impaired decision-making.
Sean Sawyer, MS
Author | Performance Coach
Sean Sawyer, a psychotherapist since 2003 and full-time trader since 2017. Sean uniquely blends psychology and trading, offering insights from both worlds. His experience in psychological trauma and performance psychology helps individuals master decision-making and resilience in high-pressure situations.