In last week blog post, I mention “How we approach our trades is our Mental Mindset.”  What does that mean?  Webster’s Dictionary defines it as 1) a mental attitude or inclination; 2) A fixed state of mind.  How do we develop a ‘fixed state of mind?”  Through our programming.  From birth to about six years of age, our conscious brains are not fully formed.  That is why you can play peek-a-boo with a toddler and they actually are surprised when you remove your hands from your face and they see you are there.  At those formative years, you are operating from your subconscious mind.  This is the part of the brain that keeps us alive, beats our heart while we walk, tells us when we need food so we don’t starve, allows us to drive and keeps us safe from harm, or at least what it remembers as possibly being harmful to us.  When we do something that it views as a threat, it reacts by having us feel fear or a number of other emotions that it hopes will get our attention and get us to stop the offending activity. Emotional responses are one of the ways our subconscious mind communicates with us.

While we are learning all these new and fascinating things about the world, we form automatic responses so we don’t have to re-learn these things over and over again but can go on to learn new things.  These automatic responses are stored in our subconscious mind and are triggered whenever something happens in the world that matches the criteria for that response.  Much like a computer program or our trading plans.  Now, do you think the way you need to react to an event is the same now as when you were six?  I should say not!  Yet many of you find that you are doing some trading based on emotions that you are feeling at that time.  Maybe you move your stop to ‘give the trade some breathing room to work out,’ or you close out your trade before it reaches its target to preserve some green in your account balance only to have it go to your target.  All this is based on emotions and programming that was put in place before you were six years old!  Can it be changed?  The answer is a resounding YES!!!

Until next week…Green Trades Everyone!