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with Sean Sawyer, MS

Session: #072 | Navigating Schema Triggers on Deep Seek Day

January 27, 2025

  1. Schemas, deeply ingrained patterns from early life, shape how we react to market volatility and stress.
  2. Abandonment, mistrust, vulnerability to harm, and failure schemas are mainly activated by days like today.
  3. Grounding and defusion practices prevent emotional responses from leading to destructive trading decisions.

Summary:

When the markets experience significant volatility, as on “Deep Seek Day,” stress can awaken deeply embedded schemas—core beliefs and patterns rooted in childhood experiences. Sean explained how these schemas, like mistrust, abandonment, and vulnerability to harm, can distort a trader’s decision-making by amplifying emotional responses and creating harmful thought spirals. He emphasized the importance of understanding these schemas and maintaining perspective during volatile events.

For traders, today was particularly triggering because the sudden downturn challenged stability and certainty, feeding schemas like mistrust (“the market can’t be trusted”) or failure (“I’m not good enough to succeed”). Sean highlighted the dangers of fusing with these schemas—believing them as absolute truths—and discussed how they could cloud judgment, leading to destructive trading behaviors such as impulsive selling or emotional overcompensation.

Sean reminded participants that volatility is short-term, but schemas persist. This is why awareness and reflection are key. He encouraged traders to document their emotional states, notice thought patterns, and resist overcompensation or knee-jerk actions, such as revenge trading or abandoning a sound strategy.

One takeaway resonated deeply: “Short-term market volatility activates long-term emotional patterns. You must step back and recognize that what feels true at the moment is often just your schemas shouting louder than usual.”

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

Connect to the present moment and enhance your self-awareness with clarity and purpose.

  • Grounding techniques were emphasized as essential for avoiding impulsive reactions to stress and remaining connected to market events rather than reacting based on emotion.

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

  • Sean explained how defusion practices—such as noticing thoughts like “I’m a failure” without judgment—can prevent traders from letting schemas take control of their decisions.

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

  • Participants were encouraged to pause and reflect on their trading goals and values, ensuring their decisions aligned with long-term objectives rather than short-term fears or impulses.

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

  • Acceptance was described as critical: “Volatility happens, and resisting reality only intensifies emotional pain. Accepting the situation allows you to act more rationally.”

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

  • Sean advised using the day as a learning opportunity, journaling reactions, and studying patterns to identify growth areas while avoiding impulsive decision-making.

Actionable Strategies

  • Reflect on how today’s market moves triggered specific schemas (e.g., mistrust, failure) and write your emotional reactions for future reference.
  • Use grounding exercises (e.g., deep breathing, noticing sensations) to stay present and avoid being swept away by emotional responses.
  • Engage in defusion by labeling thoughts as “stories” (e.g., “I’m a failure” becomes “I’m having the thought that I’m a failure”).
  • Avoid overcompensating for losses or making revenge trades; focus on your long-term strategy.
  • If you struggle to stay objective, step away from the screens, journal your thoughts, and return with a clearer mind.

Act Accordingly

Days like “Deep Seek Day” test your trading skills, emotional resilience, and self-awareness. Sean’s insights remind us that volatility is temporary, but how we react to it can have lasting consequences. By understanding your schemas and practicing tools like grounding, defusion, and acceptance, you can respond to stress with clarity and purpose, transforming challenges into opportunities for growth. Remember: your thoughts and emotions are not facts but fleeting experiences. Stay present, stay aware, and trust the process.

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.