A point that I brought up is that, often, it's not emotion itself that is the problem for traders but an absence of focus. In other words, if we're operating in the flow state--in the zone--we are absorbed in market action and understanding what markets are doing. It's the presence of focus that provides us with emotional distance. For example, when I am working with someone as a psychologist and intently listening to what they're saying, I'm not thinking about myself, how much money I'll make from the meeting, how I feel about what they're saying, etc. Being in the zone naturally takes us out of our own heads and away from our own emotional reactions.
As the quote above indicates, what we focus on expands. When we focus on something, we reinforce it. If we focus on our shortcomings, we diminish our self esteem. If we focus on losing money, we reinforce our insecurities. When we focus on mastery and understanding, we expand our sense of competence.
I mentioned in the webinar that many people try out meditation as a way of building focus, but they don't go about it the right way. They meditate long enough to relax, not long enough to enter the zone. This is why I like biofeedback devices that give immediate feedback as to whether or not you're in the zone. Simply trying to dampen negative emotions doesn't work. We need to get ourselves into a quiet, focused state and then sustain that state for increasing periods of time.
What we focus on expands. But if we focus on focusing--if we practice intensive focus each day--then our capacity for focus expands. Without focus, we lose free will. We lose our ability to determine our future. There is little sense spending our time setting goals if we lack the focus to sustain their achievement.
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