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with Sean Sawyer, MS

Session: #049 | Guilt: The Performance Saboteur

September 25, 2024

Key Points:

  1. Guilt can sabotage trading by undermining decision-making and increasing emotional exhaustion.
  2. It’s often hard to detect guilt because it can be deeply ingrained or manifest in subtle ways.
  3. Addressing guilt requires self-awareness, emotional intelligence, and a clear understanding of personal values.

In this engaging and raw session, Sean and the SPP community dive into the complex topic of guilt, labeling it as a hidden saboteur of trading performance. Guilt is a sneaky, powerful force that can creep into traders’ minds without realizing it, affecting decision-making, self-confidence, and performance. What makes guilt particularly dangerous is its subtlety—it can disguise itself as other emotions like anger or stress, making it hard to identify. Sean shares a personal analogy comparing guilt to wearing colored contact lenses from birth—completely distorting your perception of reality without you even knowing.

The conversation takes many turns, with community members reflecting on their experiences. From the feelings of guilt tied to familial expectations to the hidden burdens that come with being a perfectionist trader, guilt was revealed as a common yet often unspoken struggle. One community member, Caesar, openly discussed the pressures of being the oldest child in an immigrant family, highlighting how deeply guilt can be tied to family dynamics. This leads Sean to explore how guilt can drain energy, cause overtrading, and even manifest as revenge trading—when traders, driven by a subconscious need to alleviate their guilt, take unnecessary risks.

“Guilt wears people down because it’s often not seen as a problem until it’s too late,” Sean said, emphasizing how it chips away at mental resilience.

Sean underscores that guilt, if left unchecked, can lead to poor boundary setting in relationships and trading. This weakens a trader’s ability to make clear, decisive decisions, ultimately affecting their ability to cut losses or follow through on their trading plans.

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

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

  • Identify subtle cues of guilt in your thoughts and physical sensations, like tension or the urge to justify actions after a loss.

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

  • Practice defusion from guilt-driven thoughts by acknowledging them without letting them dictate impulsive trading decisions.

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

  • Revisit your reasons for trading, ensuring your actions are rooted in long-term goals rather than a need to alleviate guilt.

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

  • Embrace the discomfort of guilt without rushing into trades to mask it, recognizing that trading well means not always trading.

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

  • Set firm boundaries in your trading—whether that means sticking to your strategy or limiting the number of trades, even if guilt tries to convince you otherwise.

Actionable Strategies:

  • Regularly check in with yourself emotionally to catch guilt before it affects decision-making.
  • Set clear limits on when to stop trading to prevent guilt-driven overtrading.
  • Use a post-trade journal to identify any emotional triggers, especially guilt that may influence your trades.
  • Discuss trading goals with loved ones to align their support with your trading journey, reducing external guilt.

Act Accordingly

Guilt, often unrecognized and unaddressed, can erode a trader’s confidence and effectiveness. However, by identifying its subtle manifestations, traders can shift from reacting impulsively to acting intentionally. Whether setting better boundaries or reevaluating what drives your trading, understanding guilt’s role is critical to becoming a more resilient and successful trader.

Sean Sawyer, MS

Psychotherapist | 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.