Don’t’ Lose Yourself. Eminem is a trader- just like you..

Eminem writes it like this…

His palms are sweaty, knees weak, arms are heavy

There's vomit on his sweater already, mom's spaghetti

He's nervous, but on the surface he looks calm and ready

to drops bombs, but he keeps on forgetting

what he wrote down…

He get’s it. Are you a trader? Does this sound familiar?  It’s the feeling you get when you put your capital at risk. When you are in a trade. And you probably are not even following the damn plan you wrote down!

Then you move your stop. And take a bigger loss than you planned. My boy rabbit tells it straight.

He knows, his whole back's to these ropes

It don't matter, he's dope

He knows that, but he's broke

What happens when you put capital at risk? Yesterday one of my trading buddy’s texted me then blurted into our Zoom Room.. “My hands are shaking! I’,m all over the place I gotta take a walk!” What music was going on in his head? His body?

The music of risk, of trading, takes over. Slim Shady breaks it down for ya in the chorus...

You better - lose yourself in the music, the moment

You own it, you better never let it go (go)

You only get one shot, do not miss your chance to blow

When Risk Whispers, the Body Roars:

Risk is like a predator. It triggers our primal fight-or-flight response. Here's how it plays out:

• The Stress Hormones: Adrenaline and cortisol surge, boosting alertness and energy. Your heart pounds, palms sweat, and breath quickens.

• The Tunnel Vision: Focus narrows, filtering out distractions. This can be helpful for quick decisions, but it can also lead to overlooking crucial information.

• The Cognitive Crunch: Prefrontal cortex, responsible for rational decision-making, gets sidelined by the amygdala, the seat of emotions. This can lead to impulsive trades or paralysis by analysis.

Trading like a human animal:

These physiological changes can manifest in traders in various ways:

• The Overconfident Gambler: The adrenaline rush can inflate confidence, leading to reckless overtrading and ignoring risk management.

• The Paralyzed Analyst: The cognitive crunch can lead to overthinking, indecision, and missed opportunities.

• The Emotional Rollercoaster: Fear of loss can flip-flop into euphoria on a win, creating a cycle of emotional exhaustion.

• The Nutjob: The combination of taking pre-frontal cortex offline and mixing in a chemical storm can result in “YOLO” max loss trading, destroying your keyboard or other trauma response behavior.

Taming the Beast Within:

So, how can traders navigate this treacherous mental terrain? Here are some tips:

• Mindfulness: Practice meditation or deep breathing to manage stress hormones and gain emotional clarity. (see my post on spirituality and trading here)

• Journaling: Reflect on past trades to identify emotional triggers and develop coping mechanisms. (I will post my professional process for you later)

• Risk Management: Set strict stop-loss orders and position sizing rules to limit downside potential.

• Discipline: Stick to your trading plan, even when emotions scream otherwise. Like Slim shady cautions “he keeps forgetting what he wrote down”

• Take Breaks: Step away from the screen to allow your body and mind to de-stress and refocus.

Trading is a mental marathon, not a sprint. By understanding the physiological impact of risk and cultivating emotional resilience, you can transform it from a fearsome foe into a respected companion on your trading journey. Remember, mastering the mind-body dance in the face of risk is the true mark of a successful trader.

Finally, I don’t have any idea if Slim Shady is a trader, but when I hear him break it down, I hear him talking to my trader brain. Reminding me not to lose myself.