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with Sean Sawyer, MS

Session: Embracing Trading Setbacks as Steps to Growth

October 31, 2024

Key Points:

  1. Self-reflection deepens trading resilience, helping overcome the fear of missed gains.
  2. Addressing past experiences aids in trusting personal instincts and system rules.
  3. Artistic and technical skills combined foster a stronger trading mindset and adaptability.

Summary:

In this engaging session, SPP members and Sean discuss the complexities of trading psychology, honing in on challenges like the impulse to self-sabotage after profitable trades and the struggle to follow back-tested systems. The discussion opens with reflections on a recent guest lecture, leading to profound insights about navigating trading in a way that aligns with each trader’s values and emotional landscape. “When you recognize trading is as much about psychology as technique, you can trade smarter, not just harder,” one participant noted.

As Sean addresses, many traders face a crucial issue: the “money left on the table” mentality, where regret over missed potential profits can quickly cloud judgment and trigger emotional decision-making. In an impactful moment, Sean describes the importance of stepping back to examine underlying beliefs: does self-worth, perhaps stemming from formative experiences, impact a trader’s ability to trust their system fully? This self-examination can be uncomfortable but crucial to resolving these deeply rooted obstacles.

Later, the conversation shifts to the artistic side of trading, highlighting how creativity can renew a trader’s approach, whether through coding custom indicators or expressing individuality in trade strategies. Participants shared that integrating creative processes can help traders feel more connected to their craft while supporting resilience and clarity. Sean emphasizes that being a skilled trader means balancing methodical technique with adaptability, a mindset that values personal and financial growth.

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

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

  • Practicing acceptance in trading creates space to observe without judgment, freeing up mental energy for informed decision-making rather than emotional reactions.

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

  • Addressing beliefs about worth and success can lessen the grip of self-doubt, making it easier to stick to pre-planned trading strategies.

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

  • When traders embrace technical skill and values-driven decisions, they align each trade with their overarching life goals, not just short-term gains.

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

  • Recognizing that missed profits are part of the trading landscape enables participants to view perceived losses as educational rather than defeating.

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

  • Integrating self-awareness and system trust in trades allows for more precise and more confident market responses, reducing the likelihood of revenge trading.

Actionable Strategies

  • Take time for self-assessment after trades to identify emotional triggers and reframe negative thoughts.
  • Incorporate creative processes, like coding or journaling, to deepen connection and adaptability in your trading approach.
  • Develop rituals to separate emotional responses from trading decisions, like a brief pause before each entry or exit.
  • Embrace mindfulness practices to enhance awareness of your beliefs about worth, success, and risk, and recognize how they influence your trading patterns.

Act Accordingly

By accepting the ups and downs inherent in trading, members can deepen their resilience and keep their focus on continuous improvement. This session emphasized the importance of developing a mindful trading approach, where the artistic side of trading aligns with solid psychological foundations, and each trade becomes an opportunity to learn and grow.

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.