There is no denying that we are in the middle of some massive changes of cosmic proportion which affect every activity we pursue. The entire socio-economic system is shaking at its foundations.
Trading is a pursuit that gets you in close proximity with the pulse of the collective consciousness; hence traders will feel the effects of these shifts more than other professions. This perspective however is overlooked and much misunderstood by the average trader.
Yet, once you become aware of this fact and know techniques to use this awareness in practical terms in your daily trading, you will find that you are coping with the ever-changing markets much better.
Get Comfortable With Change
- One thing every trader has to become comfortable with is change.
Constant transition of some form is the pulse of the universe, because without it, the universe and every individualised expression within would simply die. Transition periods in your trading career, as in the markets, are normal. To get the deepest meaning of this is huge – the orthodox view has been to strive for stability, come what may.
I would argue the case that good trading is actually about exactly the opposite. In striving for stability, you are going against the evolutionary cycles and also against market forces. Just as it is with life, the market, whether it goes up, down or side ways, represents an aspect of universal-evolutionary cycles. The constant interplay of these cycles plays out in ever repeating fractals of time, form and motion, the elements that allow humans to make sense of what is playing out in the theatre of life (trading).
If you have studied the basics of quantum theory, something I strongly recommend, you will know that the works of the fathers of quantum physics, David Bohm, John Wheeler, Niels Bohr (just to mention a small number of those eminent physicists), explained the world as an interplay of many fractals overlaid on top of each other. These fractals appear static and separate to the human eye. Yet things are not separate, and they are constantly changing.
Here Is The Rub
- The human mind insists on seeing everything separate and static.
With the advent of science some 250 years ago, the human mind has developed a methodology of “logical” thinking that compartmentalised everything. For instance, a trader might observe a trend following strategy as a good trading method. Typically, a trend following system is deemed to be less risky than a contrarian approach.
Most traders view the transition periods from one cycle to another as difficult to trade, and they lose money during those times because they lack the ability to identify and align with the volatility during these periods. However, the real problem is not the change of cycles; rather it is traders inappropriate reaction to them, which causes resistance and anxiousness, which then prevents them from to trading what they see then adjusting their trading strategies accordingly.
Traders Detest Change
Change is seen as detrimental to our existence and not in line with our superficial, false idea of how the world actually operates underneath the veil of illusion. Upholding this purely ego based notion has no foundation of truth and makes you feel worse then you already feel because of the dichotomy between what the ego mind insists on as right and actual truth.
I have worked with many traders who had to make the transition from floor trading to electronic trading. I hardly need to tell you how a trader who has done well using open cry-outs in pit trading, placing hundreds of trades in very short succession, is challenged to make the transition to electronic trading, which requires a very different set of skills.
The Biggest Hurdle By Far
The process of having to relearn an approach is viewed by the mind as threatening to the trader’s survival. Consequently, the mind begins to employ learned “safety mechanisms” (ill placed and cause further stress) when the entire situation could be handled with much more elegance. Fear, anxiety, stress, over focus, working too many hours, over trading, impulse trading, anger, self-criticism all are typical symptoms of resistance to change.
This kind of thinking has its roots in Newtonian physics. The mind goes linear, expecting to produce a new outcome employing the linear model of going from A to B.
Going back to quantum physics, Heisenberg’s model of uncertainty demonstrates that a particle does not behave in a predictable fashion. Without going too deep into the science of quantum physics here, let’s just say that your mind thinks it can maneuver transition more safely by predicting how the change is going to unfold.
Not Quite
I don’t care if you are a new trader, perhaps coming from a different profession wanting to learn to trade, or, whether you are a professional trader moving to a new company, learning a different trading style, or a trader dealing with life changes such as divorce, parenthood, moving, etc. I am sure you are getting the picture.
The point is this – as long as you are mentally stuck in the idea that by “planning” the future, you are making the transition period easier and safer, you are mistaken.
The Big Challenge
In order to change with more ease and elegance you have to learn to think in the quantum realm, meaning you have to learn to think in terms of unpredictability and let go of the idea that things evolve in a straight line of predictable order.
Put as simply, I am asking you to depart from the perceived safety of the logical mind and start to open your mind to the fact that the world simply does not work in a linear and predictable order. The “flatlander” model you are still employing in your trading life is fast becoming so outdated that before long it simply will stop working.
- Traders have to learn to “go with the flow.”
Whenever we enter a period of chaos, which basically is the essence of transition, we have to stand back and allow a new order to appear. You cannot forecast how this is going to happen, since the universe unfolds in infinite possibilities and your conditioned mind only knows the past consciously. It is the only aspect of life (trading) it recognizes.
- Cycles are stronger than anything else. You cannot stand in the way of a freight train. If you do, you will die.
Kicking against the traces might have been fun as a young teenager, but, in the face of the ever-quickening huge paradigm shift occurring now, kicking against the traces as a trader is downright stupid. The old survival mechanisms that used to work to keep us in the illusion of safety are simply ceasing to work. I cannot give you an explanation why this is so.
However, I can certainly give you an explanation of what is happening from the perspective of quantum physics and evolutionary development about why the old-world models and the old-trading models are not working so well any more.
How To Manage Transition
The formula is actually very simple.
- Educate yourself on how the universe works.
- Learn techniques to help you “think correctly” in line with the new paradigm that is emerging.
- Seek out mentors who understand what is happening right now and who have been through the process and can help you to with practical steps to make transition easier and more elegant in your trading.
Always remember this: If you make a significant change in one area of life, that will have a positive impact on other areas of your life as well.
That is the wonderful side effect of working on your development as a trader. It is all inclusive. Welcome to oneness as applied in real life!
