by Guest Columnist, Kenneth Reid, Ph.D
Hi… this is Dr. Kenneth Reid from HawkeyeMindset.com This week I’d like to discuss “Multitasking.”
Traders multitask to reduce anxiety and for neuro-stimulation. There’s an upside and a downside to this habit. Let’s take a look at how all this works and I’ll provide a link that will help you change this habit (or any habit) in just 5 minutes a day.
Traders subscribe to news feeds and guru blogs or chat rooms to help explain and predict market movement. We naturally want to know “why” the market did X and not Y, and what it is likely to do next, because knowledge (even pseudo-knowledge) lessens anxiety.
The question then becomes: “Although you may feel better, how does that ‘knowledge’ actually affect your trading?”
Often theories and predictions work against us, because they are so subjective. If we have a theory about something it can be difficult to see the objective truth… if the truth doesn’t accord with our theory. And that disconnect can get us on the wrong side of the market.
For example, if you think the market ‘should’ go up, you will probably miss the entry for the short sale.
Multitasking also provides neuro-stimulation, the universal antidote to boredom.
Some traders get bored almost immediately… and they absolutely hate it. For them, multitasking is like an ADD drug, because information, engagement, hyperfocus and risk are stimulants that induce a state of pleasant concentration and mild euphoria. It’s a dopamine high.
Consequently, multitasking for ‘neurostim’ can easily slide into trading addiction. Like a slot machine player, these traders are trading to trade. I’ve seen this addictive behavior in doctors and dentists who trade between patient visits or while a patient is getting prepped or numb.
I coached an anesthesiologist who traded in the hallway between operations, and a surgeon who traded forex from his hospital office. Both were losing money. The distraught wife of the anesthesiologist told me he had already burned through his kids’ college fund.
Trading addiction is also a risk for those who work from a home office. One client, a father of three, worked at home for a Fortune 500 company. He preferred to trade, so he did just enough corporate work to avoid drawing attention to himself. Although he was depleting his savings, he prioritized trading over his day job because he believed he was “on the verge of greatness.”
This particular (delusional) belief is common in male traders with Adult ADD or a trading addiction. They can’t see the self-deception, although spouses recognize it quite early… and it scares them.
Reading about multitasking, or any other trader issue, is useful, but it’s not sufficient to actually change a sub-optimal trading behavior. You will forget about it in 5 minutes and go back to trading the way you always have. Nothing will really change.
However, if you are interested in reaching your full potential as a trader as quickly as possible then get on the fast track… join our new Mastermind Breakthrough program at Hawkeyemindset.com.
You get a weekly experiential video that will empower you to eliminate bad trading habits and install good ones in just 5 minutes a day. 50 videos a year on 50 practical topics essential for trading mastery. It’s the easiest way for traders to increase discipline and improve your trading on a daily basis.
The Mastermind Breakthrough videos are based on the same principles and techniques used by Olympic coaches and trainers for Navy Seals. Results have been phenomenal… and if you can afford Netflix, you can afford this service.
Go to www.hawkeyemindset.com/mastermind to find out more.
To learn more about volume and volume spread analysis, and to see more examples and live trade setups be sure to join me in the next free LIVE Hawkeye Demonstration Room held every Wednesday. Open to all. Click this link for more information or to join us in class.
Learn to trade the Hawkeye way.
Hawkeye Traders, LLC