Quite a number of TraderPlanet readers downloaded my Brain Type Self-Assessment last week, which may have made some of you feel worse about your trading, even though it included some tips on ways to make things better.
The reason it could feel like “bad news” is that Brain Type issues are by definition long-standing, so they are difficult to change, even if we want to change.
One’s current neurological balance, which, like the alignment in one’s spine, is subject to torque from various life traumas, largely determines our baseline level of discipline or lack thereof, as well as our ability to be flexible in the face of challenges.
Neurotransmitter set points largely determine our basic mood, whether it’s one of positive expectancy or a more risk averse feeling of anxiety or skepticism. And genetics largely determine our ability to tolerate stress.
The really good news, however, is that you can change your brain if you work at it. In fact, just a small shift in one’s attitude can make a really big difference in one’s results and I’m living proof
My Story
You see, I had the Addicted Brain Type, which is the worst kind of brain you can have. It’s a combination of Compulsive and Impulsive, so it’s like having a bipolar disorder. Because one cycles through so many different states of mind (greed and fear flashing by), it’s difficult to keep track of the issues, let alone fix them.
I remember the day, however, the exact moment, when I realized that I was over-focused on the market and was ignoring the only variable that really mattered: my own state of mind. It was like I suddenly knew that the ladder I was so diligently and desperately climbing was leaning up against the wrong wall.
In a flash, I realized that unless I changed so that I was aware of my mental/emotional state while trading, I had no chance of making money consistently. Zero. Zip.
Frankly, I’ll probably never be a great trader; I don’t really aspire to it. But I do trade futures every day for an hour or so and for me, these days, consistency is what matters the most. These were my trading results yesterday. It’s not that I had no losers; losers happen regardless. It’s the steady slope of the equity curve that means the most to me, and the fact that I didn’t overtrade.
So don’t give up. If I can do it, you can do it.
