By Rob Colville on June 22, 2017 in
The brain is a wonderful muscle. It’s a tool that can be shaped any way we want it to be – even into the trading mindset that all good traders need to have before they can become great traders. Don’t think of the brain as a fixed object; it is changing all the time, with every new piece of information that it retains. So why not train it in the trading mindset and really get to grips with the trades you are attempting?
It’s true that that used to be the general consensus. The brain was, once we grew into adults, thought to be immovable. Stuck. Done. But that’s not the case. Anything it has learned it can re-learn. And anything it still needs to learn, including the trading mindset, can definitely find room.
So what does that mean for your trading? It’s good news. It means that you can always discover the best ways to trade, and retain that information for a later date. It’s perfect. If trading is what you want to do, then trading is what your brain needs to be trained up for. Once that is done, you’re good to go.
Shaping your brain to become streamlined for the trading mindset is all down to experience. The brain – scientists tell us – can easily adapt to different situations and circumstances when it needs to. And when it comes to trading and getting it right, it definitely needs to. New learning can change the brain too, even down to creating new neural pathways that connect different areas of the mind, attaching importance to the trading mindset like never before.
Yes, you do need to learn how to trade, but that’s not all you need to do. You need to reprogram your brain so that it all happens automatically and the trading mindset is not something you even need to think about. This is when the real experts can enjoy their trading without worry. This is when trading becomes less like gambling because there is an almost guaranteed result. This is when you can start making money. The trading mindset and a trained brain are all you need to do it.
It does, doesn’t it? But this is not simply a case of remembering what to do. You need to get to a point where you are so far into the trading mindset that you do everything automatically and then forget all about it until you go back to it the next day. Constantly worrying about your trading will reshape your brain in a different direction, putting concern and anxiety in the place where confidence and knowledge need to be.
The subconscious is what is important when it comes to the trading mindset. It needs to be as much a set and forget process as humanly possible.
The best way to begin when it comes to the trading mindset is to pick a method and stick to it. Chopping and changing between trading methods won’t train your brain. You need to find the one that works for you and then stick with it, allowing time for your new neural pathways to become fixed. The more an action is performed, the more the brain shapes itself around that action – and the easier it becomes.
Muscle memory is an important factor in learning the trading mindset. It’s an automatic response to a learned behaviour, and it is ideal for trading. It just happens. It gets done. And you can continue your everyday life exactly as before (although probably a little more well off, and definitely with a reshaped brain).