Looking at the World Through Rose Colored Filters?
As I said in the inaugural posting, the focus of this blog will be to understand your trading decisions in the market and their affect on your trading results. One of the things I’ve learned in my coaching practice is that if you’re not aware of an issue, you can’t acknowledge it and if you don’t acknowledge, you certainly can’t change. (I know that sounds like Dr. Phil but it’s not, trust me.) The beginning of awareness is education. The next several postings in this series will be dedicated to education. The focus will be learning about seven filters* or states of mind that collectively act like a lens we naturally use when we make decisions. Let’s talk about the nature of these filters.
We daily make thousands of judgment calls, or decisions, on a variety of topics. Some of these decisions are trivial, like what to eat for breakfast, to highly significant like how much money to invest in market. The weight of the decisions may change but the lens is the same. The lens can constrict or expand the options available to us for the decisions we make.
We use this lens unaware that we’re doing so and even less aware of how it constricts or expands our view of the world. The lens is developed over a life time based on our experiences, assumptions, interpretations and belief systems. The filters or syndromes that make up this lens are not inherently good or bad, but they have characteristics that are positive and negative.
As we go though our day, we unconsciously cycle through these filters on a regular basis. So the question becomes, what if we created such an awareness of our state of mind that we knew what filter we were using at any moment? And by having that awareness, we could choose a different filter, effectively changing your perspective of a decision? What if changing your perspective was the difference between a winning or a losing trade?
The beginning of changing your trading decisions is being aware of what filter you are using right now, in the heat of the moment. This is the outline for the next several postings. Over the coming weeks we will:
- Learn about these seven different filters,
- Learn the characteristics of these filters,
- Learn how they effect our decision process,
- Create an awareness in the moment when you are using a particular filter,
- Create some strategies on how to change the those filters and, essentially, change the options available to you.
I am very excited to put this material together and to share it with you. I welcome your thoughts and comments . Our next posting will be the introduction of the filters, the first one being The Defeated Trader Syndrome.
*The educational material contained is gratefully adapted from the training received at the Institute for Professional Excellence in Coaching (iPEC), its founder Bruce D Schneider, and his bestselling book Energy Leadership.