Cognitive Behavioral Therapy for Traders, p 1
Cognitive Behavioral Therapy for Traders
If you enter trades out of fear, excitement or depression, it's important for you to know how to change your mindset so you don't fall into this trap again. Let's talk about cognitive behavioral therapy (CBT).
How can trader change himself?
Cognitive Behavioral Therapy (CBT). We typically hear this term from psychologists, who help patients overcome a variety of anxiety and other personality disorders. But CBT can be helpful for anyone, who wants to make adjustments to their behavior. The following are some negative action pattern options that you can modify for trading:
❗️ Inconsistency in trading;
❗️ Violation of the rules of trading system;
❗️ Failure to follow a trading plan;
❗️ Lack of trading discipline;
❗️ Emotional trading;
❗️ Impulsive trading, overtrading;
❗️ Failure to comply with money management rules.
Don't think that it can't be fixed. That's not true. There are various psychological methods for it, and cognitive behavioral therapy is one of them. Of course, that's not an easy process in which a person sets himself a difficult task, but it is quite possible to replace bad habits with good ones. And besides, it doesn't require you deeply dive into your past. A cognitive behavioral approach is about what is happening in your life now and how it can be changed. In some ways, we all remain "Pavlov's dogs" - the more and more often we repeat a certain behavior model, the better it's remembered, eventually reaching almost complete automatism.
HOW DOES CBT WORK?
To understand how you can improve your trading with CBT, you must understand how it works. The main principle of cognitive behavioral therapy is the focus on the present. You will not spend a lot of time analyzing how and under the influence of what particular life circumstances your negative psychological attitudes developed and formed or worry about the distant future. Instead, you will focus on small, realistic, and simple steps you can take today to change your behavior.
🔺TRIANGLE CBT
Cognitive Behavioral Therapy is based on the idea of a constant interaction of three components:
✔️ your thoughts
✔️ emotions
✔️ behavior
All of them are very closely intertwined. If you change one thing, you change everything else. The process of changing our feelings is quite complex in itself, so in this case, cognitive behavioral therapy focuses mainly on transforming your behavior through changing your thoughts (or cognitions).
CHANGING THE WAY YOU THINK
In this self-therapy process, you analyze your core beliefs that drive your behavior. That's the pivot point. By changing these basic mental attitudes, you can change the way you think about trading decisions. For any behavioral problem, you can usually identify a set of underlying attitudes that drive that behavior.
Looking at some specific examples in the next few posts, we will see how you can make changes to your behavior and achieve better results in trading.
If you are interested in such a topic, push <> button and share with your friends, so this post will be seen by more traders, maybe it will help someone.
Thanks for staying with me
Always sincerely Yours
Rocket Bomb🚀💣
