OK all you amateur psychologists, here is a question for you to ponder. "Why do people engage in self destructive behaviors?" What makes someone do something they KNOW is destructive to them. Addiction is the first thing that comes to mind. Alcoholism, drug addiction, smoking. Why do individuals engage in these behaviors when it is proven that there are severe negative consequences to their health? Before you argue that addiction is physical, think again. Not all addictions are physical. How about those who purposely eat too much or to little. Or those that cheat on their spouses, or those who gamble?
Now before you start to click the delete button on this subject, think for a minute, this has a direct effect on your trading. What causes you to break you discipline when you KNOW it will not turn out well? What is it inside of us that says, "...well maybe THIS time it will work...I don't do it all the time." It is the same justification I hear being used in other self destructive behaviors. "This one cigarette won't cause cancer." "I won't get diabetes from this super size." "I just drink when I'm out with friends." "I know this trade isn't according to my strategy, but I think it will work out this time."
I am as guilty as anyone of the above statements (accept smoking). But what happens inside the human mind when this occurs? What is it inside of each of us that causes this? I ask this because I think that for me, (and I'm willing to bet, most of us), that discipline is a significant key to success in trading, and life for that matter. Understanding and correcting this seemingly small flaw could go a long way to improving just about everything life throws at us.
Is there some bio-chemical reaction that occurs at the synapse level that causes this kind of thinking? Is it just a human propensity to "sin" and therefore self destruct? Are there "treatments" for improving or preventing these types of behaviors? Or are we just victims of our own biology...those that have better discipline are born with it.
Any thoughts? Please keep comments constructive. Lets turn our analysis inward for a while and see what happens. Lets apply the same process we use in markets to analyze and evaluate ourselves...I think THIS is the area where this type of process will produce higher results.
Anyone?
Now before you start to click the delete button on this subject, think for a minute, this has a direct effect on your trading. What causes you to break you discipline when you KNOW it will not turn out well? What is it inside of us that says, "...well maybe THIS time it will work...I don't do it all the time." It is the same justification I hear being used in other self destructive behaviors. "This one cigarette won't cause cancer." "I won't get diabetes from this super size." "I just drink when I'm out with friends." "I know this trade isn't according to my strategy, but I think it will work out this time."
I am as guilty as anyone of the above statements (accept smoking). But what happens inside the human mind when this occurs? What is it inside of each of us that causes this? I ask this because I think that for me, (and I'm willing to bet, most of us), that discipline is a significant key to success in trading, and life for that matter. Understanding and correcting this seemingly small flaw could go a long way to improving just about everything life throws at us.
Is there some bio-chemical reaction that occurs at the synapse level that causes this kind of thinking? Is it just a human propensity to "sin" and therefore self destruct? Are there "treatments" for improving or preventing these types of behaviors? Or are we just victims of our own biology...those that have better discipline are born with it.
Any thoughts? Please keep comments constructive. Lets turn our analysis inward for a while and see what happens. Lets apply the same process we use in markets to analyze and evaluate ourselves...I think THIS is the area where this type of process will produce higher results.
Anyone?