Key Points:

1. Replace “ego” with “schema self” to develop a more practical mindset.
2. Identify and differentiate between schema-driven and trader-driven behaviors.
3. Use the observing self to gain perspective and improve decision-making.

Summary:

In this session, Sean dives deep into the concept of ego, arguing for its replacement with the more clinically practical term “schema self.” While the ego is deeply ingrained in popular culture, Sean believes it to be a weak concept in psychology, advocating instead for a focus on the observing self. This concept stems from mindfulness practices.

Sean discusses the historical context of ego, highlighting Freud’s contributions and the limitations of viewing ego in isolation without considering the id and superego. He emphasizes the need to take thoughts, beliefs, emotions, and sensations less seriously, suggesting that we should view ourselves as vessels through which these experiences pass. This approach, he argues, is more applicable and practical in a clinical setting and, by extension, in trading.

One key point is the differentiation between schema-driven behaviors (influenced by past experiences and emotional baggage) and trader-driven behaviors (focused, professional decision-making). Sean encourages participants to cultivate their observing self to recognize when operating from a schema rather than their rational trader self. This awareness helps them make better trading decisions and avoid impulsive actions driven by past emotional states.

Sean also introduces the concept of life history behaviors versus trading behaviors. He stresses the importance of identifying whether a decision is influenced by past experiences (schemas) or by present, rational thinking aligned with trading goals. By continually questioning whether a behavior is schema-driven or trader-driven, participants can ensure they make decisions that align with their values and long-term objectives.

“Taking your thoughts less seriously is a process that leads to mental clarity and better decision-making.”

– Sean Sawyer

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

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

• Observe when your thoughts and feelings arise and let them pass without attachment during trading.

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

• Recognize when schema-driven thoughts influence your decisions and consciously shift to trader-driven actions.

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

• Evaluate if your trading decisions are moving you closer to your values and long-term goals.

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

• Acknowledge your emotional states without judgment and allow them to be part of your trading experience without dictating your actions.

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

• Act from a place of clarity and purpose, ensuring your trading decisions are informed and aligned with your professional self.

Actionable Strategies:

• Practice mindfulness to enhance your ability to observe yourself and differentiate between schema-driven and trader-driven behaviors.
• Use values-based decision-making to align your trading actions with your long-term goals.
• Regularly reflect on your emotional states and their influence on trading to maintain clarity and focus.
• Implement techniques to reduce attachment to fleeting thoughts and emotions, fostering a more stable trading mindset.
• Develop a routine that includes checking your emotional and mental state before making trading decisions.

By consistently applying these strategies, traders can cultivate a mindset that supports informed, value-aligned decisions, ultimately leading to better trading outcomes and personal growth.