You probably have not made the connection: Few traders and investors have, but happiness and your trading strategy and investment decisions are inextricably linked. In this article I am going to explain to you why the happiness factor is a much overlooked foundational piece of trading psychology.
It all begins with the issue of expansion. Happiness is an expansive energy and this means when you are in a happy state your are able to take in more information, a vital factor for making good trading decisions
Happiness also harmonises the body and mind. Many trading problems arise through lack of cohesion. The four parts of the brain are not working in harmony with each other, causing stress, fatigue and unhappy emotions.
Research has shown that happiness makes for better relationships, better health and better careers and fewer crimes. Happy people live longer, have fewer illness and make more money.
I am sure that you can see how the happiness factor is a vital part of your trading psychology and the pursuit of it could vastly improve your trading results.
Happiness as a state is totally misunderstood
It is not about suppressing your feelings of anger, frustration, or your desire for a better life, better trading, or improved relationships. Most people believe that in order to be happy you need to be in a blissed out state of giddy joy. This is actually not so and also impossible to do, since we are living in a dualistic world and it is duality that allows us to experience our reality. Rather, happiness is a state of equanimity and harmony which enables you to flow with life and roll with the punches while maintaining your equilibrium. Equanimity is an elementary characteristic of good trading psychology, which every trader should strive for.
When you are happy your brain releases endorphins, feel good hormone, and reduces cortisol output, stress hormones. Your energy levels rise and your ability to focus increases. In other words: Life becomes easier and those difficult trading decisions all of a sudden don’t seem to be that challenging any more.
You will notice how you spot those trading set ups which until now where hard to see, and you will act on investment opportunities which might have passed you by in the past. Your capacity to take on risk, a pre-requisite to trading and investing, increases. No, you won’t be reckless, don’t worry. The happiness factor creates harmony and this means that the urge for reckless trading behavior falls away.
Happiness can be learned
Like everything in life, you can learn to activate the happiness factor within you. Granted, this is not a one day wonder. It requires a little effort and perseverance. Imagine though how much more satisfaction you might experience from your trading if you would incorporate the happiness factor in your trading strategy.
I believe we owe it to ourselves to make our trading as much fun as possible and thus give ourselves permission to rise beyond our self imposed limitations to new levels of achievement and success while enjoying the journey.
