Psychological Rule #7: Self-Honesty is Critical
Some people have asked me, "how can I get to the depths of my self-sabotage and clear it out?" Well rules 7 and 8 both address that. First, you need self-responsibility. You need to say, "it's me. I created this." That means taking ultimate self-responsibility.
Second, you need to examine your emotions. Most people who are attracted to trading tend to be very logical and tend to avoid their emotions. This actually requires years of avoiding looking inside at what's going on inside. It takes practice and it takes much more practice to undo the habit. So start looking at your emotions and notice how much of your behavior is control by your emotions.
Third, you need to start a practice of working on yourself. One example is my Peak Performance Course. People tend to go through it once, but it is a lifetime exercise, not a one time exercise. And the first time through most people totally skip what they need to work on the most.
Fourth, you need to be totally honest with yourself. Any blame, justification, or guilt will tend to keep you from seeing the solutions.
And lastly, you need to commit to a lifetime of working on yourself. I've been doing it for over 25 years and I'm just now discovering elements of self-sabotage and that includes elements that I have not been willing to look at before. At it's not that I suddenly have insights, because that happens on a regular basis when you commit to working on yourself as a lifetime work.
Ans who knows, by commiting to a lifetime of working on yourself, you might save yourself lifetimes.









Comments
A lot of people have trouble saying "it's me, I created this" even for other people. I read something recently where someone was rationalizing the LTCM disaster, saying it wasn't Merriwether, et al's fault but rather because of market volatility.
In the case of LTCM, it was the management's creation; they created it by not recognizing that market volatility was a real threat to their trading style and strategy. They didn't factor it into their planning, ignored the possibility that they could be wrong...
If you have something external that you're blaming for your losses or self-sabotage, think about how you could have known about, planned for, and limited your risk against that situation.
In marketing, it's common to say that people make decisions based on emotions and then find facts to justify their decisions. Think about that from a trader's vantage point -- do you want to take position X for truly fact-based reasons, or do you *feel* like you want to take the position and are looking for facts to justify that?
I have to admit that I do that myself sometimes... but that's not a bad thing as long as I am honest with myself and recognize it, plan for it, and limit the various risk present as best I can.
Posted by: Jason G. | January 10, 2007 02:09 PM
Great series going on here.
Sure is a constant process of evaluation. ~sigh~
Posted by: MrMike | January 12, 2007 01:58 AM