BarroMetrics Views: A View of Mortality II
The modern trader has knowledge not available when I first started trading. I am not talking about computer power or market understanding but rather the impact that Neurology brings to our trading success. We now have the means to ‘see’ how our brains think and behave. In the process, we have new information on how we make decisions, how we learn and how to motivate ourselves.
In this blog, I want to look at some of the impact on motivation.
To get from Point A to Point B, it’s quite clear that sheer will power will not do the job. David Rock likes to say comparing the neocortex to the limbic system is like comparing a grain to the milky way. I prefer the analogy that the neocortex is the rider whereas the elephant is the limbic system. Unless the rider can guide the elephant to his path, there is little chance he will be able to force the animal along that path.
For us this means we need to ‘speak’ to emotional brain in a language that it understands; this is not language of words and logic but that of pictures imbued with emotion. One way of doing this is to create ‘destination postcards’, goals, strategies and actions that turn to habits and routines.
The more effective actions we can turn to habits and routines, the more likely we are to attain success. This is because ‘will power’ is a limited resource that needs to recharge; whereas the unconscious mind (and it is here that habits and routines reside) is an unlimited resource.
So, if we want to succeed:
- First create a VISION and set of goals to implement that VISION and
- Use Pictures imbued with emotion for this process
- Create a strategy and action plan
- Turn as much of the action plan as we can to routines and habits
- Finally review the consequences of our actions, learn from our mistakes and make the necessary adjustments.