In other posts I’ve talked about this, but it’s worth remembering: just as important as learning how the market works is having the mental control of investments and knowing how not to let emotions hurt trading in the financial market. In today’s post I will talk about a tool that helps traders identify some problems and make better decisions: biofeedback.
See what it is and how it can be used to benefit your investments in the Forex market:
How does biofeedback work?
Biofeedback is a technique used by medicine that helps people control their physiological and emotional reactions to certain events. The technique uses supersensitive instruments, usually computerized, to collect information about the body (bio) of the person being analyzed.
When, for example, you look at yourself in the mirror, it gives you back information about your appearance that you would not be able to see without it. Biofeedback is more or less the way it happens: physiological body data such as temperature, skeletal muscle tension level, and other factors that we are not able to analyze the naked eye are measured. From the information collected by the tool is that you can make any adjustments that you deem necessary.
In essence, biofeedback gives you the power to use your thoughts to control your body, often used to help with a health condition or physical performance.
How does biofeedback help traders?
But what does this technique used by medical experts have to do with the financial market and mind control of investments?
EXACTLY, EVERYTHING! Since I started trading in the financial market, what really fascinated me was the instant feedback on my operations. Some traders, for example, start trading on the five-minute charts and then slowly gravitate to longer-term logos such as four-hour charts or daily charts. Why do these traders do this? I give you a chance to guess!
Other traders, after several lost orders, give up a trading system and look for a new one. If you think this change in strategy happens because of Biofeedback Market, you got it right!
Great, great to know all this, but how can this help?
How to apply the technique to have mental control in investments
Market Biofeedback is the difference between traders who give up on a trading system and look for a new strategy and traders who maintains confidence despite the series of losses. How you react and respond to a loss in the market with loss of your capital is extremely valuable information.
The easiest way to see Market Biofeedback is by memorizing (decorating) the state you are in when you enter the market. You can record your voice before, during and after an input, or you can take a “print”.
You can also record a video of your input with desktop recording software.
Here are some important questions to answer while recording Biofeedback from the Market:
– Where is my entrance, since the market has changed?
“If I looked at the market now, would I be late?”
– How do I feel about my order of entry?
“What am I liking about this order now?”
“What am I not liking about this order now?”
– On a scale of 1 (very bad decision) to 10 (excellent decision), what grade would I use for my entry into the market?
“If I did not go into the market now, would I take the opposite entrance?”
Ask yourself these questions and write down the answers before, during, and after the negotiation. Use this information to create a database of your vision and expectations, learning from the valuable feedback the market provides you.
As you can see, biofeedback is nothing more than a way to self-assess and acquire mind control of investments, being aware of your emotions so they do not get in the way of decision making. This is extremely valid for you to have self-control and do not give up before it is time to see your return appear only because you were emotionally impacted by the variation of the operation performed.
Always keep in mind that the market is in charge, we adapt to it and not the other way around. Use this technique without moderation!
“There is nothing more insane than to always do things in the same way and expect the results to be different” – Albert Einstein
And for you to start doing differently, earning a better return on your investments, learn a step-by-step method in which I teach how to trade and succeed in Forex.