Building a Probability Based MInd from a Fear Based Brain

there is a big problem in the way use your mind use your brain to trade it's not what you think it is okay there's a lot of work that goes into being able to be a traitor and having it you know getting the point where you really understand the markets from your your point of view from a train point of view it's there's a lot of work that goes into methodology where you finally learn how to run this thing and find an edge and that edge is going to give you the ability to extract more capital out of the markets then you put back in that's successful training there's a big problem with that idea though the idea is the brain itself your brain okay is built to evaluate risk and safety in the environment same as same as your mind as you've trained your mind to do the problem is this your brain is going to operate with a completely different set of assumptions than you as a thinking creature are ok and I want to read something to you this is from one of the eminent neuroscientists of our times and here he is and he's a researcher he's not he's not it he's an academia listen to this ok listen to this here he goes our nervous system that your brain function as a century by continually evaluating risk in the environment ok now understand this is your brain doing it and exactly what's it evaluating for ok through neural surveillance mechanisms hmm that's different physical aspects of our sensory input our brain identifies features of risk or safety many of the features of risk and safety are not learned this is what I want you to hear friend they're not learn but rather are hardwired into our nervous system in like adaptive strategies associated with our phylogenetic history Wow what does that mean that means basically we as Homo sapiens taking us all the way back down from a time that we were not these human beings that we're looking at now we're human beings where we've got the stuff but we have not evolved this neocortex is thinking brain that thinks it's in control rather what we are is that followed genic business is our ancient ancestors who could not think who did not think as we think but it same time their brain their emotional brain is out evaluating risk and safety in the environment in much the same way that you as a modern trader are evaluating risk and safety in the markets now do you see where the confusion can happen here can you see where it's very easy for the ancient primitive brain the one that was literally looking for risk and safety out there on the African savannah and finding a lot on mind it was a dangerous place and then reacting to it basically with a brain built around fear of avoidance of danger okay now take that and recognize you at brought that right back up with you every time you trade this time though you're trying to be this guy in control this modern human being and you're looking out in the environment same eyes as the ancient had and you're going okay I'm seeing risk yeah my old job as a trader is risk management and safety I need to be able to you know once I get into a trade I need to really be able to make make sure that I stay safe I don't get into bad things I do all that stuff however under stress what do you think happens that old ancient part of the brain takes over and suddenly we have a primitive brain from a primitive ancestor making decisions about our risk and that whole nine yards now this is where it gets interesting and where you really need to check into this your emotional brain when it experiences uncertainty it's going to solve that problem okay it's going to solve it and we call that a limbic learning when it finally comes across a solution that works it'll lock it in literally synaptically and it just absolutely starts flowing you don't even have to think literally your brain interacts with the environment and that signal shows up say the trade goes against you and all of a sudden it boom it reacts by bringing a an emotion up into play and suddenly the force of that mo the emotion is out playing taking over mind and there you go now the trick is this at one level before our human ancestors thought like us it stayed on the limbic level we had never had thoughts it never had a beliefs it just was a solution about the avoidance or the attacking of threat that's what he was doing however now it's changed somewhere along the miracle of evolution we develop thinking we became a thinking sitting at being and suddenly there's limbic learnings that taught our organism how to be in relationship a successful a short-term relationship with the environment begin to get encoded as beliefs suddenly they're powerful beliefs in play when you are actually experiencing the stress of trading the challenges of trading the uncertainty of trading and those are about your adequacy about your mattering I got a window I got a win to show him I really matter your worth do I really deserve to make easy money or powerlessness oh my god I have no I have no controls of the trading gods and also need be Glen to see that it's no longer just limbic learning but it's psychological belief we've literally gone from limbic learning to the development of beliefs in our psychology and then what happens is you project that under the markets but this left brain it starts making up narrative stories alibis fictions about those beliefs that derived from those limiting suddenly you start creating a tale of why I didn't get in the trade more more confirmation on just a little bit more confirmation a little bit more confirmation notice that the logic is not there the story is there and it seems logical but now that story is serving fear okay not probability fear this is the ancient brain talking so we have a story we end up creating the story about us being winners or losers and we say you know something I've got to be a winner I've got a control outcome I've got to make it happen that is going to be a dangerous type of mind story to bring into trading in the same way I don't want to be a loser well at the same time if you're going to be a trader you need to become an incredibly good loser because you're gonna be doing a lot of losing it's kind of like a 300 baseball hitter you know that's a Hall of Fame guy yet if you just take a look at it going wait he's only getting base it's three out of ten times he's only thirty percent successful that's a great success rate so you start seeing traders and all sudden they have these ideas about not losing and yet the idea of not losing sets them up to lose because they don't know how to lose how do you go about changing all this well the first is to acknowledge it's there well not you like it or not it's not going to go away and the more you resist it the more it persists but what we teach and empowered and our work what we'll be teaching and look like traders state of mind is this we teach basically a six prong program it starts with emotional regulation you eat you really have to go in you have to be able to manage the triggering of that emotion and being able to manage it so that it doesn't hit a peak level and then stick over and just contaminate mine that's the first level the second level is to produce a level of mindfulness that allows you to step back out of thought and to recognize that all you really are this you you keep talking about is actually a particular potential that has organized into a self and you didn't have anything to do with it you can't kind of same stock with it into trading you realize oh my god I can set back my thoughts and I are not the same my beliefs are not the same as me and yet at the same time I need to learn how to reorganize them the third thing is you have to turn toward your demons your darkness and start realizing wow I need to turn toward what I fear yeah and you discover there's an inner critic that judges and criticizes you you discover that there's an orphan nature within you that's scared or it's trying to prove its worth dangerous and trading that's the next step the next step is just you chart discovering that there are powerful elements living within the self that you do need to manage probability rather than the old stuff the primitive brain gave you and those are discipline courage self soothing and impartiality those are emotional programs that are part of your genetic structure that follow genic stuff that Porges was talking about here though you're learning how to pull them up okay in the face of stress and to act from them that's emotional intelligence friends and that's what's missing mostly in trading that's where emotional discipline comes but that's not enough you have to engage the internal struggle from this position of strength that's the intentional mind that's what we learn how to produce the last thing is you have to stay vigilant often a lot of traitors believe that man if I can just get past fear man I've got it made then they discover there's something beyond fear even more dangerous overconfidence when you start winning and circling look at me I'm winning no what you've done is you've developed the ability to create a mind that can engage and work with uncertainty really well it's not a permanent fixture and yet stay vigilant because otherwise you'll fall back down friends that's the way we do it that's the problem that you've got to solve that primitive brain that is going to solve the problems of risk and safety but it's going to do it on an enormous ly short-term fix way that just doesn't lend well to probability mind at all but the key is is you solve that problem and you begin to realize that I can transform the old brain that's built around fear and I can transform it into a probability based mine for trading come learn how come to our website begin to really look at the different free materials and other stuff in my book and then start really looking at the courses friends there is a way to build that fear based brain into a probability based mind come learn

Channel: Rande Howell

Views: 25,719

Rating: 4.9574881 out of 5

Keywords: trading psychology, in the zone, emotional regulation, mindfulness, self control, emotions in trading, fearless, sabotage, discipline, disciplined trading, over trading, impulsive trading, giving it back, fear of losing, trading psychologists, emotional control, losing control, Mark Douglas, patience, over confident, trading coaches

Id: U6b_ab0wKcg

Length: 12min 53sec (773 seconds)

Published: Tue Jan 29 2019