[Rande Howell]

"There seems to be an invisible hand that is guiding my trading, and I don't seem to have much say-so in the matter," a trader laments to me. She continues, "I'm buying your book because I do not understand why I keep on doing the things that I do, when I know what I am supposed to do. But it is not what I'm supposed to do that I do. Rather it is what I'm NOT supposed to be doing that I do.

I hold on to trades too long in both directions. I know what my rules say about my stops and my targets. But I'll be there one second, then my evil twin takes over my mind. And I do things that I know are not good trading. It's almost like I get possessed, and when I wake up from the trance, all I can do is kick myself for not following my plan.

What's going on? Don't lecture me about discipline and putting my emotions down at the door of my trading room. I've heard all that, but this invisible hand seems to creep in and all the discipline I have in other areas of my life seems to vanish in the mist."

The Elephant in the Living Room

Have you ever experienced what this trader is describing? She knows how to trade. She has a deep background in finance and accounting. She doesn't experience debilitating fear in her trading. And she is a moderately successful trader. She makes money. But she recognizes that she is hitting an invisible glass ceiling that is stopping her from moving to the next level. And she can't see what she can't see. She suspects that there is an elephant in her living room, that if she only had the eyes to see, she would be able to see what is limiting her and her trading.

Trading, History, Biology, and Mind

Taking a step beyond quick fix, short term, solutions to self limiting patterns is the first step. Understanding emotion as far more than feelings is the head knowledge that you will need to cultivate. Fundamentally emotion is about the way the organism you are builds predictable responses to the uncertainty of adapting to the circumstances of life.

The brain is what directs this process of adaptation and it is emotion driven. Feeling is merely the subjective experience of an emotion. It is like seeing an iceberg -- the vast majority of it is below the surface. Feeling is the tip of the iceberg. If you remain ignorant of the power of emotion, then you put yourself in the same situation that the Titanic found itself.

It is the genesis and stability of neurally wired patterns of responding to environmental cues that is at the crux of understanding (and managing) emotion. In essence, your brain is a pattern-making machine that is mandated to avoid threat. And your brain cannot separate uncertainty, worry, and fear from one another. This is exactly what the trader quoted above is stuck in.

Now, let's add one more element to our trader's dilemma of her invisible hand guiding her trading. She's right. She was born (actually her brain) into a soup of beliefs, biases, and perceptions (called her family circumstance) and her brain incorporated these "stories" into a narrative that became "her". This is the environment into which her brain adapted her. And it happened long before she could think or question the assumptions that organized the way she perceived her environment. This became her "invisible hand".

In her world, she organized herself into a narrative that avoided uncertainty. It was what her family did and "what monkey see, monkey do". The assumptions became her beliefs. Until she got into trading, there was no reason to question these assumptions turned beliefs in her brain/mind. Life was pretty good.

Her trading has forced her to bump up against her comfort zone (known as a perceptual map to the neuro-science minded). Now the internal guidance system that was so successful in producing adaptive survival is no longer functioning effectively in this new environment called trading where working with uncertainty is a required operational skill.

Now her job is to de-construct the old money/risk narrative that she was born into and adapted to (her invisible hand). And she will need to construct a new narrative where the brain adapts to uncertainty as an element of her environment to be embraced. And mastered.

Biology Meets Mind
Our family histories get embedded into our belief systems in the organic substrate called your brain. Your job as a trader is to become the designer of the beliefs that drive your trading. Otherwise you will stay stuck in the self limiting beliefs that your brain adapted you to -- designed for a different environment and a different time. The Invisible Hand will remain a force that drives your trading until you develop the mindfulness and the skills to "re-develop" the narrative that you confuse with "your thoughts".

Those thoughts are not yours. They own you. They are the histories of family narratives getting wired into your brain. They become your blinders. You see only what they allow you to see. Breaking out of this invisible prison opens you to see a new kind of freedom. A freedom to " become". A freedom to become the beliefs that drive peak performance trading.

With this in mind, what were the stories and narratives about uncertainty, risk, worry, and fear that you were born into? How did they shape your world? And how are these long hidden narratives embedded in the neural pathways of your brain impacting your trading today?

Rande Howell

[TheBigMan]

Sounds to me like you have demons. Try an exorcism. LOL

Originally Posted by Rande Howell »

"There seems to be an invisible hand that is guiding my trading, and I don't seem to have much say-so in the matter," a trader laments to me. She continues, "I'm buying your book because I do not understand why I keep on doing the things that I do, when I know what I am supposed to do. But it is not what I'm supposed to do that I do. Rather it is what I'm NOT supposed to be doing that I do.

I hold on to trades too long in both directions. I know what my rules say about my stops and my targets. But I'll be there one second, then my evil twin takes over my mind. And I do things that I know are not good trading. It's almost like I get possessed, and when I wake up from the trance, all I can do is kick myself for not following my plan.

What's going on? Don't lecture me about discipline and putting my emotions down at the door of my trading room. I've heard all that, but this invisible hand seems to creep in and all the discipline I have in other areas of my life seems to vanish in the mist."

The Elephant in the Living Room

Have you ever experienced what this trader is describing? She knows how to trade. She has a deep background in finance and accounting. She doesn't experience debilitating fear in her trading. And she is a moderately successful trader. She makes money. But she recognizes that she is hitting an invisible glass ceiling that is stopping her from moving to the next level. And she can't see what she can't see. She suspects that there is an elephant in her living room, that if she only had the eyes to see, she would be able to see what is limiting her and her trading.

Trading, History, Biology, and Mind

Taking a step beyond quick fix, short term, solutions to self limiting patterns is the first step. Understanding emotion as far more than feelings is the head knowledge that you will need to cultivate. Fundamentally emotion is about the way the organism you are builds predictable responses to the uncertainty of adapting to the circumstances of life.

The brain is what directs this process of adaptation and it is emotion driven. Feeling is merely the subjective experience of an emotion. It is like seeing an iceberg -- the vast majority of it is below the surface. Feeling is the tip of the iceberg. If you remain ignorant of the power of emotion, then you put yourself in the same situation that the Titanic found itself.

It is the genesis and stability of neurally wired patterns of responding to environmental cues that is at the crux of understanding (and managing) emotion. In essence, your brain is a pattern-making machine that is mandated to avoid threat. And your brain cannot separate uncertainty, worry, and fear from one another. This is exactly what the trader quoted above is stuck in.

Now, let's add one more element to our trader's dilemma of her invisible hand guiding her trading. She's right. She was born (actually her brain) into a soup of beliefs, biases, and perceptions (called her family circumstance) and her brain incorporated these "stories" into a narrative that became "her". This is the environment into which her brain adapted her. And it happened long before she could think or question the assumptions that organized the way she perceived her environment. This became her "invisible hand".

In her world, she organized herself into a narrative that avoided uncertainty. It was what her family did and "what monkey see, monkey do". The assumptions became her beliefs. Until she got into trading, there was no reason to question these assumptions turned beliefs in her brain/mind. Life was pretty good.

Her trading has forced her to bump up against her comfort zone (known as a perceptual map to the neuro-science minded). Now the internal guidance system that was so successful in producing adaptive survival is no longer functioning effectively in this new environment called trading where working with uncertainty is a required operational skill.

Now her job is to de-construct the old money/risk narrative that she was born into and adapted to (her invisible hand). And she will need to construct a new narrative where the brain adapts to uncertainty as an element of her environment to be embraced. And mastered.

Biology Meets Mind
Our family histories get embedded into our belief systems in the organic substrate called your brain. Your job as a trader is to become the designer of the beliefs that drive your trading. Otherwise you will stay stuck in the self limiting beliefs that your brain adapted you to -- designed for a different environment and a different time. The Invisible Hand will remain a force that drives your trading until you develop the mindfulness and the skills to "re-develop" the narrative that you confuse with "your thoughts".

Those thoughts are not yours. They own you. They are the histories of family narratives getting wired into your brain. They become your blinders. You see only what they allow you to see. Breaking out of this invisible prison opens you to see a new kind of freedom. A freedom to " become". A freedom to become the beliefs that drive peak performance trading.

With this in mind, what were the stories and narratives about uncertainty, risk, worry, and fear that you were born into? How did they shape your world? And how are these long hidden narratives embedded in the neural pathways of your brain impacting your trading today?

Rande Howell

[Rande Howell]

Originally Posted by TheBigMan »

Sounds to me like you have demons. Try an exorcism. LOL

All of us have psychological demons that block our potential. If you want to experience yours, and you have fear of pulling the trigger, listen to the internal conflict that occurs in your mind and freezes your capacity to act. If you have probability on your side, what is the force inside you that stops you from pulling the trigger? That is what I call a psychological demon. I know few traders who don't wrestle with theirs.

Rande Howell

[ahimsa]

Originally Posted by Rande Howell »

"There seems to be an invisible hand that is guiding my trading, and I don't seem to have much say-so in the matter," a trader laments to me. She continues, "I'm buying your book because I do not understand why I keep on doing the things that I do, when I know what I am supposed to do. But it is not what I'm supposed to do that I do. Rather it is what I'm NOT supposed to be doing that I do.

I hold on to trades too long in both directions. I know what my rules say about my stops and my targets. But I'll be there one second, then my evil twin takes over my mind. And I do things that I know are not good trading. It's almost like I get possessed, and when I wake up from the trance, all I can do is kick myself for not following my plan.

What's going on? Don't lecture me about discipline and putting my emotions down at the door of my trading room. I've heard all that, but this invisible hand seems to creep in and all the discipline I have in other areas of my life seems to vanish in the mist."

The Elephant in the Living Room

Have you ever experienced what this trader is describing? She knows how to trade. She has a deep background in finance and accounting. She doesn't experience debilitating fear in her trading. And she is a moderately successful trader. She makes money. But she recognizes that she is hitting an invisible glass ceiling that is stopping her from moving to the next level. And she can't see what she can't see. She suspects that there is an elephant in her living room, that if she only had the eyes to see, she would be able to see what is limiting her and her trading.

Trading, History, Biology, and Mind

Taking a step beyond quick fix, short term, solutions to self limiting patterns is the first step. Understanding emotion as far more than feelings is the head knowledge that you will need to cultivate. Fundamentally emotion is about the way the organism you are builds predictable responses to the uncertainty of adapting to the circumstances of life.

The brain is what directs this process of adaptation and it is emotion driven. Feeling is merely the subjective experience of an emotion. It is like seeing an iceberg -- the vast majority of it is below the surface. Feeling is the tip of the iceberg. If you remain ignorant of the power of emotion, then you put yourself in the same situation that the Titanic found itself.

It is the genesis and stability of neurally wired patterns of responding to environmental cues that is at the crux of understanding (and managing) emotion. In essence, your brain is a pattern-making machine that is mandated to avoid threat. And your brain cannot separate uncertainty, worry, and fear from one another. This is exactly what the trader quoted above is stuck in.

Now, let's add one more element to our trader's dilemma of her invisible hand guiding her trading. She's right. She was born (actually her brain) into a soup of beliefs, biases, and perceptions (called her family circumstance) and her brain incorporated these "stories" into a narrative that became "her". This is the environment into which her brain adapted her. And it happened long before she could think or question the assumptions that organized the way she perceived her environment. This became her "invisible hand".

In her world, she organized herself into a narrative that avoided uncertainty. It was what her family did and "what monkey see, monkey do". The assumptions became her beliefs. Until she got into trading, there was no reason to question these assumptions turned beliefs in her brain/mind. Life was pretty good.

Her trading has forced her to bump up against her comfort zone (known as a perceptual map to the neuro-science minded). Now the internal guidance system that was so successful in producing adaptive survival is no longer functioning effectively in this new environment called trading where working with uncertainty is a required operational skill.

Now her job is to de-construct the old money/risk narrative that she was born into and adapted to (her invisible hand). And she will need to construct a new narrative where the brain adapts to uncertainty as an element of her environment to be embraced. And mastered.

Biology Meets Mind
Our family histories get embedded into our belief systems in the organic substrate called your brain. Your job as a trader is to become the designer of the beliefs that drive your trading. Otherwise you will stay stuck in the self limiting beliefs that your brain adapted you to -- designed for a different environment and a different time. The Invisible Hand will remain a force that drives your trading until you develop the mindfulness and the skills to "re-develop" the narrative that you confuse with "your thoughts".

Those thoughts are not yours. They own you. They are the histories of family narratives getting wired into your brain. They become your blinders. You see only what they allow you to see. Breaking out of this invisible prison opens you to see a new kind of freedom. A freedom to " become". A freedom to become the beliefs that drive peak performance trading.

With this in mind, what were the stories and narratives about uncertainty, risk, worry, and fear that you were born into? How did they shape your world? And how are these long hidden narratives embedded in the neural pathways of your brain impacting your trading today?

Rande Howell

hello Rande,sorry but talking about the" thoughts are not yours,...they become your blinders....ecc.maybe, you take like example a sartre's thinking.?...when he said that it's all,inuseful,free,non-sense..and the freedom is'nt more a privilege but a sentence?and we needed a new kind of freedom!sorry maybe i'm wrong but maybe i realized this,because i'm reading now this...? thanks in advance..

certenotti

[Tradewinds]

The issue of doing what you know you shouldn't do, is not just a trading issue. It's a basic human flaw that plays itself out in every aspect of life. Typically, traders talk about the fear and greed problem. But how do we stop the fear, greed or any other emotional, or automatic response that causes a bad decision?
In order to deal with this problem in real time, we must recognize the thoughts and feelings that trigger the break down of our rational thought, and the recognition needs to be instantaneous, . . . as it is happening. Then you must intentionally go against the influences that you know are wrong. Think of what it must be like for a bird to jump out of the nest and fly for the first time. So you must intentionally step into the fear, and depend upon your strengths. It's all about where your focus is. Don't deny your fear, greed or any other feelings or issues; but don't focus on them and give them your energy. We must practice where we are going to put our energy and what our focus is going to be.

[Rande Howell]

Thank you for your observation. Well spoken. The necessity of learning to wake up and live in an organization of the self that trades well... or lives well... is what I like about the situation that traders find themselves in. In other areas of life, it can be avoided for a lifetime. But trading provides us with a mirror, and your trading account shows you where to cut. Gotta cut dead wood, and know where to cut, to trade successfully.
Rande Howell

[Rande Howell]

I'm a Martin Heidegger (sorry about that spelling) fan rather than Sartre (far too depressing a way to find freedom for me). I hold that we are creating our realities in the moment of our action. Becoming aware of the forces that are "ready to hand" allows us to move beyond them and into deeper potential. This sense of being in time is what gives rise to trading in the zone.

Our unobserved mindset that guides our trading (the invisible hand in the example I use in the post) is the point here. She is perfectly capable of better performances. But she has to become aware of the history she was born into and taken over by before she can start building a new future.

Rande Howell

[TheRumpledOne]

Why do people make things so complicated?

First you must have a trading "playbook". Just like the football coaches have there playbook on the side line. They have the plays mapped out for all possible events AHEAD OF TIME.

Your entry rules must be in the form IF X THEN ENTER. X should be simple.

Example: IF the 5 Minute candle crosses and closes above the EMA(5) THEN enter long on the open of the next candle.

That is simple. I am sure a quick search of this forum will give you examples of overly complicated entries.

Your exit rules should simple, too.

After entry, set stop loss to entry price - 50 cents.

If price moves to entry + 10 cents move stop loss to entry + 5 cents.

If price moves to entry + 25 cents, move stop loss to entry + 15 cents.

If price moves to entry + 50 cents, exit 1/2 position and set trailing stop of 25 cents.

Now all you have to do is execute according to your play book.

Either you do or you don't. It is that simple.

You must FORCE yourself to execute the plan and STOP second-guessing - IT IS THAT SIMPLE.

All the rest is MUMBO JUMBO.

If you want to know WHY YOU LOSE AT TRADING or HOW TO WIN AT TRADING, use your favorite search engine.