Wednesday, December 16, 2009

Gaining Self-Control Through Biofeedback

A while back, I described three uses of biofeedback for traders. The reason biofeedback can be so helpful is that it provides real-time information about a trader's state of mind and body.

Ultimately, the goal of this work is to cultivate a quiet mind. Only when people are focused and alert can they pick up the sometimes very subtle cues that come from recognizing a market pattern. That "gut feel" that traders often talk about is easily lost among P/L concerns, frustrations, and distractions.

Biofeedback exercises can interrupt the negative self talk that often disrupts concentration. By stilling mind and body, a trader can prevent his or her internal dialogue from activating flight and fight reactions that tend to accompany overtrading.

In my next post, I'll outline a simple biofeedback routine that can benefit traders in just minutes per day. It's part of that goal of setting ourselves up for success, even as we search for market setups.



Radek Dobias, H.B.Sc., M.W.S., B.Ed. said...

Meditation achieves the same purpose, Brett. You can go on a 10 day free retreat to ground yourself in the practice.

Curtis said...

Do you have a "radio"?
There is a parable about a top winning trader who had a radio that he listened too that he claimed he would get "signals" from. But when others checked it was just playing static. The story goes he was successful not because he had any signals but because he rode the trend.

I find there is another interesting lesson in this story that may go unnoticed. He was listening to the market. Listening for something out there.