The Hidden Biases Killing the Potential of Your Trading

Traders literally blow themselves up before they even know it. They don't know that they're blowing themselves up, and yet they keep running into. It's like a hidden monster. And when they do that, they just simply collapse and it folds and they. They try harder and it just really collapses. What they're not seeing is what they really need to see. It's called a limbic system bias. You go, what's that? Well, if you have ever done a trade, went kind of nuts in it, and then afterwards you looked at it and you said, what on earth was I thinking? You have met the limbic bias. It's not going to go away. It's part of an ancient brain that you have, that you've brought to trading, and it's built for lightning reflexes that are totally beyond cognition, which is what you're trying to operate in when you're trading. So it literally has a bias built in through evolutionary psychology. Until you know these biases and can spot them, you're going to get victimized by them. Whether or not it's over trading, whether or not it's revenge trading, any of that, Ultimately the bias triggers in the limbic system, the ancient brain, and you don't even know to look for it. You can't see what you can't see. Well, what we're going to do this time, at this moment, we're going to look at these biases, I'm going to tell you about them so that you can actually start looking for them, spotting them, and realizing that this is what's happening. And later, what you can learn is how to manage them. The first thing is called locus of control or control bias. And ultimately, that is something that is wired into our evolutionary psychology, and it has us believing that we can control our environment, control outcome. How many times you said, I can control this. I can make this thing happen. And there it is. But you don't see it. And you're okay when you're not trading with money on the line. But what happens when you put capital at risk? Suddenly the stress builds and that bias kicks in and you don't see it. That's the locus of control. It's really a belief. And if you think about it from our caveman days, it was absolutely necessary to be in control of the environment, in control of outcome. Had to. The second one is our optimism bias. Have you ever noticed you go in and you look at all the stuff and you realize that very few traders actually make money, and yet you come in and you go, I can do This, I can do this. That's that optimism bias. And the casinos know that if you go and play cards with them with that bias and operation that over the night, they're going to take your money. So you're sitting there and you go, oh, that optimism bias, that's a bias, friends. That's happening on a ancient brain level, on the mammalian brain, on that caveman brain of yours. That's the second one. You've got to see it.

Your optimism is not going to cause you to win or lose. Your consistency of mind that you bring into the moment of trading is going to help you produce the mind that wins more than it loses. Okay, the third one is confirmation bias. We've all heard about that. But ultimately, in confirmation bias, and you're under stress now, this is when this kicks in, is that you start seeing information and you interpret it to confirm whatever you already believe about something, good news or bad news, you might confirm that. I'm looking at this and it looks great. Looks great. It's going to. It's going to stop, it's going to hit the. It's going to hit the bottom and I'm going to be right there and it goes on down. And of course, your confirmation bias is saying, I have to see this thing as if I'm winning. I have to see this thing and I'm going to. I'm going to put more money into that thing or I'm going to freak out. That's that bias operating. That's the confirmation bias. It literally takes all the information and forces it to support the prevailing belief that you're operating under. And if you're operating under optimism bias, you have a problem. The fourth one, cognitive dissidence. What is that? That is literally looking at evidence and it's contrary to your belief and you rejecting the evidence and you will take false evidence and you will organize it to support the belief. You choose to believe that rather than what's sitting in front of you is instead of what the market is telling you.

You'Re deciding what the market's going to do. That's the cognitive dissonance. You won't let go. The fourth one, this is one that a lot of you will know, particularly if you're alphas, chase bias. When we were cavemen, we chased big animals in packs and we would take them down. And the thing is, the people who would do that were highly esteemed. They had great status in their clans. And that bias gets built into your genetics. And all of a sudden what happens is that you see something that looks like a good opportunity and you have an eagerness and you want to go for that. You have this urgency to act. And everything inside you is saying, go for it, go for it, go for it. That's the chase, that's the over trading. That's what leads to revenge trading. Wow. And the last one I want to talk about here is the callback bias. When ancient man, our caveman ancestors, were attacked, we attacked back, we clawed back against greater prey, and often we won because we had more than one person there. Clawback. You would know it as revenge trading. You know the market hurts you, well, you're going to show it. You take some losses, you're going to get that money back, you're going to call back, you're going to revenge trade, you're going to show the market something. You know as well as I do an insane mind, you can't do that. But here you are, here you are.

Absolutely convinced that you can claw back and you can make up for prior losses. That's not good trading psychology. That's not stuff you bring there. That is an ancient limbic bias. Now you take those seven and you start going, wow, that's what my ancient brain has brought me. Yes. The thing is, is you have to develop the eyes to see what you're not seeing. You have to be able to see that bias in operation, kicking in absolutely polluting the mind that you bring to trading or catching yourself in a bias and recognizing that it is not good for you and that you need to be taking absolute management of that. How do you do that? Well, in the program we teach, it starts with emotional regulation, then it moves to mindfulness. Then it actually starts saying, we're going to actually see these biases and the voices that they produce inside the mind, and we're going to start being able to locate them. But then more than that, we have to produce a mind from a brain where that initial brain literally is looking at uncertainty as the enemy and it wants to control it. It wants to do all these things that these biases are doing. We have to reprogram the way your brain interacts with uncertainty. The primary response is fight flight. However, we need to produce curiosity, we need to produce discipline, we need to produce impartiality as we engage that. This is what it takes to overcome these biases. Friends, if you want to know more, go to the website, start looking at the articles. There's an article out there written on this very theme right now that's up on the first queue when you go and read the articles by me, then if you're really beginning to recognize oh my God, this is happening and it's ambushing my trading mind, sign up for the webinar and start going, oh my God, I need to learn how to deal with this. We'll get more in depth there, but right now, take these biases. Locus of control, optimism biases, confirmation bias, cognitive dissonance, chase bias, and then our good one, clawback bias, and start really looking for them in your trading performances. That's where the magic is. Friends, good luck, have a great day and hope you trade well. Have a good.

Sa.