We have come across many researches of meditation and trading. One of them was to analyze the impact of mediation on traders. One would wonder about the impact of trading related variables for traders when practicing meditation. However, there have been great studies on this topic but does meditation really affect trading profitability? “Trading Is 80% Psychological And Only 20% Technical”.
Meditation has several benefits for traders. It can help us become more aware, focused and make a clear mindset. There are many ways to meditate and we do not have to commit large periods to get started.
Goldman Sachs has a meditation instructor who teaches their traders. Ray Dalio (who runs the world’s largest hedge fund), has been meditating for 42 years. Some of the top performers in the field of finance and trading meditate. It is not a coincidence.
Let us explore below mentioned 7 benefits for traders
One of the most important aspects of Trading is clarity and focus. This is particularly important when you are day trading and hence becomes even more critical for day traders success. Meditation can be an excellent tool in enhancing your ability to focus and concentrate. With meditation, you will generate a clarity and presence of mind that enables you to transcend the conditioning that limits your awareness.
If you are able to see beyond intelligence while trading, it can dramatically help improve your trading results. Meditation is great for this because it gives you insight beyond intelligence. As a trader we all have that inner voice that seems to appear whenever we make a mistake, notice some emotion or simply just ‘second guess’ our actions. This is the Inner Critic and he’s undoubtedly one of the main reasons why people fail in their trading ventures. Well, meditation can help exposing what lies beneath the surface and helping you concentrate on the present which is vital in trading
If you are able to cultivate a calm mind while trading, it can dramatically help improve your trading results. Meditation is great for this because it gives you a practice ground to develop a calm and conscious state. It will also reduce anxiety and allow you to deal with your losses more effectively.It breaks your ego and prevents you from taking greedy trades. This cannot only increase your performance in trading but also many other areas of your life.
Well, meditation can help you reduce the ‘noise’.There are a lot of psychological issues that arise from trading, either from the difficult task of letting go of money, to overcoming the trauma of previous failed trades, to learning how to handle emotions in the heat of the moment.
If you want to become a better trader, then you must learn to manage your emotions by taking steps to increase your emotional intelligence. Investors’ irrational behaviors in the stock market come from listening to their emotions too much. Such emotions that cloud investors’ judgment are fear, greed, confidence, hope, etc. Meditation makes us positive and Positive Persons are more likely to succeed in trading.
One particular obstacle we feel many traders struggle with is pattern recognition during trades. The first step in overcoming this challenge is to meditate. Having a focus before you begin analyzing the markets will help you to recognize patterns more easily.
Every trader has ego while trading and it becomes a problem when the ego starts working on his mind. It is one of the biggest problems traders face as they somehow or others start considering themselves winners and all others to be losers. You always think that you are the best and you cannot avoid distractions. You should try meditation for trading. It breaks your ego and prevents you from fighting with prices and markets, it allows you to surrender towards the market which is unavoidable for trading success.
How to meditate:
Focus on your breathing–the air coming in and out at the level of your nostrils. Notice when your mind wanders and then gently return to your breath. There are many other ways to meditate, but this is easy and simple; it shows you how to watch your thoughts, feelings, and urges without acting on them.
At first, you might be clumsy or inept at this, but that is why you practice. Moreover, as you get better and better—even at a slow pace—you will learn to handle yourself better as a trader, which means that emotional trading will be more under control. We teach all these things in detail, what psychological issues we face and solutions other than mediation to deal with psychological issues we face during trading, in our successful trader course for stock trading success you can be also part of it.