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.