For many traders, the negative emotions of anxiety, fear and even anger elicited by either trade uncertainty or outcomes is real. For some, these morph into panic or paralysis. Regardless of how this condition manifests itself, it has a detrimental effect on our psychological well-being and to our trading P & L. These emotions do not lend themselves well to someone aspiring to be a long-time market participant. It’s just not sustainable.
I have a powerful way to deal with these emotions that I’d like to share. As you’ll soon discover, this technique works both inside and outside the markets.
Back in the day, there was a person close to me that used to know how to push all the right buttons to upset me. I am quite sure that the behavior that elicited my response was not intentional, but never the less, it really bothered me. Encounters with this person left me feeling angry and upset. It got to the point of me being angry and upset BEFORE I ever saw the person. Many times, I literally felt sick.
Solve the Problem: Employ and Develop your Inner Observer
George, my counselor at the time, introduced me to a powerful technique to solve my issue. Visualize yourself as a scientist / observer hovering above yourself and the situation…. anticipating, thinking ahead, watching, jotting down notes but not personally involved. When the barbs from the other person come, they are directed to a third person……not you the scientist / observer. Because you have extracted your emotional body from the situation, it takes all the energy and resultant negative response / reactivity away. When I practiced this technique, I found myself able to interact with this problematic person very effectively……he no longer bothers me. Doesn’t mean we’re all buddy- buddy now, but I no longer let his actions throw me into a tail spin the way it did before.
Now, when I am in any situation that is causing me to feel anger, stress, resentment or any other unwanted emotion to take hold, I activate my inner observer. I remove my emotional self from the situation and let my inner observer take charge.
Now let's consider the situation many of we traders find ourselves. Becoming emotionally attached to stocks and trades. Attaching our moxy as traders to outcomes either good or bad. Experiencing that roller-coaster of fear, elation, depression, anxiety, insert your emotion here. Not a great place to be.
When you've had enough of the pain and suffering that comes with this trading lifestyle, read further.
How to use your Inner Observer in Trading
How can we use this in trading? Remember, you are an observer of yourself, the trader. Hovering over your right shoulder watching, taking notes, giving advice from a third - party perspective. Your new-found observer friend might make some comments like this…..
Become friends with your Inner Observer
Your inner observer will help keep you on the path of becoming the calm and confident trader you want to be.
I talk to my inner observer all day long. My inner observer looks at my trades. He reminds me not to get married to trades, to honor my stops, to fill out my trade plan. We talk about all kinds of stuff. When I get mad at a losing trade he asks if I would get mad at a mouse for turning right instead of left. He encourages me to follow my process and to develop new ones that are even better. Yeah, your inner observer can be a real help. With some development and nurturing, your inner observer will likely become one of the best friends you ever had. One who keeps your feet on the ground and eye on the prize, especially during rough patches. I encourage you to make your inner observer part of your winning team.
For Further Study
8 minute Video with simple ideas HERE
Inner Observer Practice HERE
What are Self-Observation and the Inner Observer HERE
The Inner Observer HERE
Let me know how it works for you. Drop me note and share your story at email@example.com
Thank you for spending time here; hope it helps!!