A while back, I posted on the topic of "brief therapy for the mentally well". Brief therapies are collections of methods designed to promote rapid changes in patterns of thinking, feeling, and acting. Much of what I do as a psychologist is help traders become their own trading coaches by applying brief techniques to their own situations. Some resources for learning brief change techniques can be found in this post and in my two trading books.
People who write about psychology (but who aren't psychologists) often assert that behaviors change through positive thinking, goal setting, and the like. One would think that the annual experience of broken New Years' resolutions would put an end to such fantasies, but apparently not. The idea that we can shape ourselves by willing self-improvement seems unusually impervious to lack of research evidence and much personal experience to the contrary.
So how do people control their behavior and sustain the motivation to change themselves?
Let's look at a very unusual example: the anorexic patient. Anorexic people greatly restrict their food intake, sometimes to the point of death. They frequently have a distorted body image and believe themselves to be overweight, even as they are literally wasting away.
Clearly anorexia is a serious psychiatric disorder, but it is an interesting motivational phenomenon. Here is an inborn, hard-wired behavior pattern--eating--that is overridden by a social motivation: the desire to not be fat. So all-encompassing is this motivation that it often proves to be resistant to efforts at treatment, medical as well as psychological.
What is the basis for the anorexic person's motivation? Not positive self-statements and goal-setting, that's for sure! Rather, the anorexic individual is motivated by disgust. Quite literally, the patient is disgusted by anything that feels or looks overweight--and that disgust is so strong that it keeps food at bay.
Daniel Nettle's recent book Happiness: The Science Behind Your Smile makes the important point that disgust is a much stronger emotion than happiness. We tend to habituate to happiness: what makes us happy (a new car, seeing an old friend), after a while loses its ability to bring overt joy. Disgust, however, such as the sensation of eating food that has gone bad, stays with us for quite a while. What disgusts us now--for instance, sitting on a bus next to a person who hasn't bathed in weeks--will most likely produce equal disgust should it happen in the future. Indeed, like the anorexic, we might even avoid buses altogether just to prevent a repeat experience of disgust.
There are solid evolutionary reasons for this, Nettle notes. The things that would disgust primitive man--tainted food, unsanitary conditions--are directly related to his survival. If it took many learning trials to become averse to such situations, humans might not have survived their learning curves. By hard-wiring disgust, learning, and motivation, nature provided the opportunity for one-trial learning: the briefest of all therapies.
When we examine many of the most dramatic examples of personal change, we find disgust as a common element. What gets a person to finally stick with a diet is reaching the point of disgust with his or her appearance, energy level, etc. Similarly, smokers and alcoholics reach the point where the consequences of their behaviors disgust them, whether those consequences are smelling bad, becoming short of breath, or losing jobs or driver's licenses. "I can't stand living this way," is a frequent refrain among therapy clients who are ready for change.
I personally reached the point of sticking with my stop loss levels when I became disgusted by large losses that ate into days' and weeks' worth of profits. Similarly, I became better at defining and acting upon my profit targets when I became disgusted with situations in which I had a nice profit in hand and let it completely reverse to breakeven. And letting winners turn into losers? That became *so* disgusting for me that I set my exits to ensure it won't happen again.
Want a reliable behavioral method for ensuring that you follow your trading plans? Simple! Hook up your trade station to an IV drip going into your arm. Whenever you violate your plans, the drip would release a small amount of ipecac extract to induce violent nausea. Very quickly, the association between the trading behavior and the nausea would lead you to anticipate negative consequences any time you broke your rules. An anticipatory disgust response, like that of primitive man and tainted meat, would keep you from doing the wrong thing. Permanently.
There actually is a treatment similar to the imaginary example above, and it's called aversion therapy. Taking a drug that makes an alcoholic person sick whenever they drink ends up being one of the most effective ways of dealing with the addiction. Positive intentions and self-help exercises don't nearly possess the force of gut physical disgust.
If disgust can turn eating into a behavior to be avoided and an alcoholic's drinking into a thing of the past, perhaps it can be leveraged into a brief treatment for trading problems. The key is turning common wisdom on its head. Instead of trying to *make* yourself do the right things, fill your mind with thoughts and images of how disgusting you are when you do the wrong things. Just as anorexics spend hours in front of mirrors berating themselves for their looks, you can create your own metaphorical mirrors and become emotionally connected to the wasted effort and lost money from poor trading practices.
We are most apt to change a pattern once we become truly disgusted by it. Would you continue to do business with someone who violated your contract with him and took your money? No, you'd become so disgusted with such a dishonest individual that you'd shun him altogether.
Well, that person is you when your own patterns violate your contract with yourself and cause you to lose money. Once you become truly disgusted with your own patterns, you'll shun them altogether. And that's the briefest--and most effective--of therapies.
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15 comments:
Excellent.
Bravo Dr. Brett!
A fine and interesting post. I laughed at the "Clockwork Orange" scenario...within a trading framework of course.
Marc
Wow. I became quite disgusted just reading it. Seriously. I think this emotion can be a great tool and I like how your approach uses emotions to work for the trader instead of just trying to shut them down.
BW
Thanks for the comments. It takes a certain amount of self esteem to be disgusted with your own actions. As Nietzsche pointed out, the person who hates himself esteems the self that does the hating.
Brett
Once the initial disgust has been used to initiate change, how do you then continue your motivation to complete the actions?
e.g. If I use disgust to finally begin losing needed weight, how do I continue to use disgust as the motivator once the original condition that started the process has changed?
A hypothetical – Say I weigh 300lbs. Clearly I need to change. I should weigh 180. I use disgust as my motivator to change my behaviors and I lose 50 pounds. Now I look better than I did and the original level of disgust at my 300lb aesthetics is gone. But I still haven’t achieved my 180lb goal. Do I reset my disgust level at 250 and keep doing that until I reach 180lbs?
Or when I’m 300lbs, is anything heavier than 180lbs the continued sole disgust motivation until I reach my goal weight? Wouldn’t beating up oneself for the time necessary to lose such a large amount of weight be potentially very damaging to one’s self?
Hi Steve,
You raise a great question; thanks for the opportunity to elaborate. You'd want to focus your disgust upon process, not outcome. Hence, your disgust might be with your way of eating or your lack of exercise, not with your absolute weight level.
Similarly, as a trader, you'd focus your disgust on the process of trading (letting winners turn into losers), not your absolute P/L level.
Brett
Brilliant post and a most brilliant idea!
The big question, IMHO, is can a self administered "filling of our mind with thoughts and images" deliver a sufficient or behavioral impact, equivalent to that of "the force of gut physical disgust" that is required to modify a behavior, as you so wisely explained.
Hi Jeff,
I do think that such imagery work requires some repetition and effort, but can be quite effective. Thanks for the comment!
Brett
Nice post Dr.B
The same disgust occurs with bodybuilders afflected with bigorexia. I had it badly as a teenager, and it is truly a never ending addiction that you think about constantly. It can screw up your life, but to you, it is the only thing that matters. For some individuals it takes an extreme mind set to be the best at something. You can call it bigorexia, but I still see that I'm small when there is someone more muscular than me at the gym or as long as Ronnie Coleman is alive I will never big enough.(Visually seeing more muscular people than you makes you jealous and disgusted and makes you more determined and motivated to eat more and lift harder). As a trader, I'm still not good enough if I lost money today or someone made more money than me today, I could have made more, I did something wrong and I need to put in the time to learn and correct what I did wrong. With trading, the gym is reviewing your charts and recorded videos of the trading day.
As far as the IV drip induced naseua idea goes, I have a problem everyday. I experience the flight or fight response everyday during my trading, most of the time I get the adrenaline rush before I even enter the trade. My heart rate increases, I sweat, and the most annoying thing of all is having to piss 3 times in an hour. My adrenal glands are going to be wasted in a few years if I keep this up. When I first started trading over a year ago I never had this problem, but now my trading has become a fight everyday, where I worry about even a few ticks that go against me. It isn't a matter of position sizing either, because I get the same response trading 1 contract or even trading on the simulator. It's going to take time and practice to build up my confidence to correct this. I wish I had a mentor like you. Thanks for another great post.
Hi LifePost,
That's one of the most insightful comments I've seen in a long time. Many thanks. Your insight into "bigorexia" and the similarity to the stress many traders face is right on the money. The common thread is that we attach self esteem to the outcomes of what we do, whether it's bodybuilding or trading. I've found cognitive approaches to change to be especially helpful in dealing with such patterns. If any readers are interested in such methods and would like a professional counseling referral in their geographic area, feel free to email me and I'll do my best. One of the final chapters in my recent book has some self-help cognitive methods as well.
Brett
An excellent article that I just discovered. Often wondered about that, why when I am pissed or disgusted with myself and much more apt to trade to my fullest capabilites rather than when I have a nice winner and just sit watching the market.
Thanks for a most interesting post
Thanks, Wyn, I've experienced the same thing: disgust can be quite a motivator!
Brett
...a great quote from Othello about how thoughts can control emotion...
Othello, consumed by jealousy, questions his wife's maid, who knows Othello's wife is innocent and responds to his questions: "...amend thy thought, it doth abuse thy bosom."
Hi English Teach,
Great quote; thanks. There are many abused bosoms among traders!
Brett
Great post.
A real pity it would not work on Wall Street for some urgently needed behavioural changes, for obvious reasons...
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