Trader’s Narrative

Most people would claim that they are the masters of their domain, that they are the ones who make choices, rationally, consciously and pehaps even scientifically. To argue this point with them would be futile. So instead of arguing, why not show you a simple exercise which may illustrate by way of an example that our decisions are made by and large by our subconscious mind - and then only after the fact, rationalized and justified by the conscious mind.

Watch:

For those who are dying to know exactly how Derren Brown did it, he does explain very superficially at the end of the video. But he does leave out important points. For example, how he anchored the positive feeling to the left shoulder, or the dominant colour of the room or the myriad circles and double circles in the decoration of the room.

As a trader, I hope this makes you think deeply about why you do certain things. From the way you think about the markets to how you arrive at decisions to buy, sell, cut losses and pare profits. These decisions may seem to you to be systematic and well thought out. But I would argue that they are by and large a product of your subconscious mind which is anything but rational.

Even traders who employ a totally systematic trading methodology (that is programmed rules for buys and sells which the computer fires off) are not free from this. For, what else, but their own mind did they use to come up with the algorithms?

I’m not trying to be alarmist or claim that what you are doing is necessarily wrong. What I do hope this will do for you is to seriously reexamine your assumptions and make you think twice about why you arrive at certain decisions and to what you attribute them to.

The subconscious is an immensely powerful master but for the most part it is hidden from its partner, the conscious mind and unfortunately, it can at times wield its power against its owner.

And the next time you find yourself trying to effect any sort of change, either within yourself or another person, stop and ask yourself. Am I trying to influence their conscious mind or their subconscious mind?