Performance Killers Pt. 3: Avoidance

Key Points:

1. Avoidance, while providing temporary relief, often perpetuates long-term emotional struggles and hinders personal growth.
2. Traders frequently avoid admitting mistakes and seeking feedback, which leads to repeated errors and emotional strain.
3. Confronting uncomfortable emotions and practicing psychological flexibility allows for authentic growth and emotional resilience.

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 leads to improved performance.

For traders, avoidance manifests in subtle but damaging ways. Instead of acknowledging mistakes or seeking feedback for improvement, they bury their errors, allowing these unresolved issues to fester until they erupt in emotional outbursts or irrational decision-making—what we often refer to as ‘tilt.’ Tilt is that emotionally charged state where impulsive decisions take over, sabotaging disciplined performance. Avoiding discomfort at the moment—whether it’s owning up to an error, facing constructive criticism, or simply sitting with the emotional fallout of a bad trade—leads to a breakdown in the values-based (disciplined) trading process, reinforcing unprofessional trading behaviors (UTB’s) over time.

Avoidance as a Barrier to Effective Performance

Avoidance negatively affects emotional well-being and undermines the core principles of performance psychology by causing traders to engage in self-sabotaging behaviors. Traders often change their positions, move their stop-loss orders, or alter their strategies to avoid feeling anxious, impatient, or inadequate. Instead of following their carefully devised plans, they abandon their strategy to avoid the emotional discomfort of making mistakes.

The behavior can be challenging as it often originates from deeper issues. These could include long-standing patterns of avoiding failure or feeling like an imposter. However, it doesn’t have to be that deep; it can simply be a low level of distress tolerance, a common side effect of misguided stoicism. These avoidance patterns can lead traders to make reactive decisions, such as adding to losing positions in the hope of a turnaround or shifting targets to avoid admitting they were wrong. These actions, driven by emotional discomfort, ultimately hinder long-term success. Reacting based on avoidance perpetuates poor performance, keeping traders trapped in cycles of fear, impulsivity, and repeated mistakes.

The Self-Perpetuating Cycle of Avoidance

Avoidance is a self-reinforcing cycle. Every time a trader avoids discomfort—admitting they made a bad trade or facing the anxiety of an uncertain outcome—they strengthen the belief that these emotions are too overwhelming to handle consciously or not. While avoidance might seem protective in the short term, it leads to a breakdown in emotional discipline and locks traders into patterns of fear, hesitation, or impulsivity. Over time, this avoidance can escalate into more profound emotional struggles, including heightened anxiety or persistent feelings of inadequacy, which further impede effective performance.

Breaking Free from Avoidance in Trading

Overcoming avoidance requires willingness—accepting discomfort and uncertainty without letting them steer your actions. But how do you practice willingness? Start by leaning into the discomfort: acknowledge difficult emotions without rushing to fix or avoid them. Reduce trade size, stick to your stop-loss, and observe your emotional reactions instead of reacting impulsively.

This process becomes more manageable when built on a foundation of mindfulness. Regular mindfulness practice helps you develop the skills to stay present, grounded, and aware of your thoughts and emotions without being controlled by them. You create space to act intentionally, even under pressure, by cultivating these habits. Practice mindfulness daily and let it guide your willingness to embrace challenges.

“When we are no longer able to change a situation, we are challenged to change ourselves.” – Viktor Frankl

By consistently confronting discomfort rather than avoiding it, traders regain control over their actions and prevent impulsivity from undermining their strategies. This process is not just about managing discomfort but about embracing the growth potential of facing it. For traders, avoidance often blocks these necessary changes, but facing discomfort head-on allows for emotional transformation and improved trading performance.

CLEAR Mindset Connections:

Connect: Traders must connect to the present moment and their immediate emotions rather than avoid them. This awareness can prevent impulsive decisions and promote clarity.

Embody: By facing discomfort and mistakes, traders can embody their core values—such as integrity and discipline—and ensure that their actions align with their long-term goals.

Act Accordingly:

Avoidance can be a significant barrier to trading success, but it’s not insurmountable. By developing psychological flexibility and confronting discomfort, traders can break free from avoidance patterns and improve their performance. I encourage you to apply the strategies discussed in this article and start your journey toward greater emotional resilience and trading success.

Actionable Strategies:

1. Identify Avoidance Triggers: Reflect on the thoughts, emotions, or situations you tend to avoid in your trading. Awareness is the first step toward breaking avoidance patterns.
2. Take Small Steps Toward Discomfort: Gradually expose yourself to the uncomfortable aspects of trading. Whether you’re reviewing a losing trade or experiencing post-trade anxiety, face these challenges head-on.
3. Focus on Process, Not Outcome: Stick to your trading plan, even when potential losses or mistakes cause emotional discomfort. Prioritize process over short-term relief.
4. Practice Patience: Commit to staying present and patient in your trades, even when the market challenges your resolve. Avoid impulsive actions based on emotional discomfort.
5. Seeking feedback is crucial to breaking free from avoidance. Actively seek constructive feedback from mentors or peers. Rather than avoiding criticism, use it as an opportunity for growth and improvement. This approach fosters a culture of continuous learning and improvement, helping traders overcome avoidance and reach their full potential.