How to Break Negative Trading Patterns
Noticing a problem is necessary to solving it, but not sufficient. We need to address the factors that are causing and/or triggering the problem.
That requires real reflection. Very often, when we experience a psychological challenge in trading, there is a problematic situation that brings an emotional response, which in turn triggers a poor trading behavior.
That situation can trigger feelings of frustration and internal dialogue of self-criticism, which then trigger taking a marginal trade to make up for the initial situation. The problem is not just taking the marginal trade; the problem lies with the entire sequence.
When we chart the situations, thoughts, and emotions leading to episodes of poor trading, we become increasingly aware of our own patterns. Very often, it's a handful of triggering situations that lead us to make our behavioral mistakes in markets.