If you want any success in the market, you must put yourself in a state of mind that supports in achieving your goal. If you do not have confidence in your trading system, you cannot attain success by following that system. Achieving excellence usually requires you to be in important states of mind, in which confidence is one such state. You need to have ‘state’ control.
If you do not know the correct state of mind, some external factors related to the market will take over and dictate your state of mind. When you let the market control your thoughts, you cannot win on a consistent basis. You will only lose consistently. Most people can witness the change in the state of mind of others but not themselves. Many people are able to change their mental states quickly. So you need to discover the methods you can use to change your state of mind.
State control is not very difficult. You can follow the below-mentioned methods to change your state of mind and choose the state that you want to be in.
- Changing the way you see the world
- Using your past experiences
- Looking at how others achieve a ‘state’ of mind
- Changing your mind and body
- Constructing the state of mind from scratch
We shall discuss the first five methods in the next section, and the last one will be explained in the following article.
Changing the way you see the world
Events in the world do not cause any major ‘state’ changes in you by themselves. It is your internal representation of an event that causes the ‘state’ change. If you change the way how you look at the events, you change the way an event affects you. You can also change the structure of the event in your head to bring ‘state’ change. You could reframe an event and put it in a broader perspective in which it will hold value. Your behaviour also plays a crucial role. Every behaviour of yours is useful in some context. You need to find a situation in which your behaviour is useful. By knowing that greed will affect your performance in the market can save many losses. You can instead use greed in places where it is actually useful.
Using your past experiences
When you recall something from the past, you remember it because it contains all the feelings, images, and sounds that are attached to you. The event put you in a particular ‘state’ that made you remember everything associated with the event, including your ‘state’ of mind. Try to think of ‘state’ that makes you happy. By remembering, it will bring joy, confidence, and excitement in you. As you recreate the moments in your mind, intensify them. You will enjoy it for a few minutes. If you are able to do this, you can do this as many as times as you want, whenever needed.
Looking at how others achieve a ‘state’ of mind
Imagining someone who has attained the ‘state’ of mind that you want can also help in bringing the change. If there is someone whom you admire, think about that person and behave similarly to him when needed. How would they react to the situation, and what steps would they take to solve the problem? You may not remember a time when you were worried, but you will undoubtedly remember someone who has worried less in those situations. Hence, observe them and try to become like them. In the context of markets, you could imagine a super successful trader or investor.
Whatever state you want, you can fantasise about it. Suppose you want to gain confidence in your trading system, but your trading system puts you in a loss situation in the market. As long as your stop loss is not hit, fantasise that the market is moving in your favour. You will start feeling as if you are already in profit. When you decide to fantasise about being a successful investor, your ability to perform as an investor improves dramatically. You become a winner faster than before. We are not saying fantasising everything will get whatever you want. However, the fantasy world will help you gain emotional control that you need for success.
Changing your psychology
Changing your psychology is strongly related to changing your body. The mind-body connection is very significant. If you change your thinking, you will change the functioning of your body. If you do the morning exercise regularly, you will notice a different mental experience. The point we are making is that you can change your state of mind by changing your body. There are some ‘state’ change methods that you have been using daily but are not aware of. You can also plan ahead of time, to act on certain events. You can do this by changing your position and ‘state’.
These five methods and other mental states are just a beginning. Every situation has its own mental state. When you develop different mental states, test which works best for you in your mind. After testing, you need to practice attaining that state whenever you want. If you do so, you will automatically have the control you want when the situation arises. You will be able to stand, breathe, and hold your head when you are totally in the state of mind you want to be. Mould your body to fit yourself in that position. If you face difficulty with this exercise, read this article again and again. Happy Trading!