Forex Trading: Breaking Emotional Models
So let us continue talking about image exposure as one method of emotional models.
As soon as you have specified the rules of trade for problem situations and have learned a method for self-control development, work on an exposure could begin. At first we have begun with image exposure, forcing to enter into a condition of a relaxation with slow breath and the closed eyes. It supports scenario visualization as you make the slow breath and mentally rehearse corresponding strategy of trade. Thus, for example, you could imagine a tic falling to a minimum lasting many days on movement at opening and abortive attempt to fill gap at a push back. It would be for it a signal for an input in a short position, and it will be clear to visualize each step which you would undertake for the control of the market – placing of the warrant on an input, placing of the protective stop warrant etc. the similar kit of visualization could facilitate rehearsal of strategy of an exit also.
As soon as all discomfort is overcome in mental rehearsals, the following step to work on an exposure consisted in application of skills in virtual trade. Using the historical market data, we have made so that you have passed a bar behind a bar trade modeling in trend days at rehearsal of its self-control and trading strategy. Only, when these simulations passed successfully (that is, exclude anxiety) you could undertake an exposure in actual practice, since small positions and passing to the big. Speed, from which you progress from image exposure before virtual trade and work in actual practice, depends on gravity of problem and intensity from which it rehearses methods.
There is a set of psychological approaches which presume to reach to us the control over our problem models. Methods on the basis of an exposure are especially useful to the individual traders trading in the changeable markets because they allow to perform self-checking and often to receive fast results.
Such methods can’t overcome all problem models. Sometimes people with chronic difficulties need additional forms of therapy, including treatment. However, when emotional reactions are situational, instead of chronic and especially when you can allocate trading situations which cause problem models, methods on the basis of an exposure are excellent means to reach the control and to remain adhered to the trading plan.
However, pay attention that I have underlined necessity for the appropriate, researched trading strategy accompanying methods of an exposure. As the skilled clinical psychologist and the trader, I can tell you that self-improvement methods separately will never allow you to cope with the market. If you want to know how to trade in trend day on range break, or day consolidation of a morning trend, you should research well these market conditions and develop some rules and methods for an input in the market and an exit from it. Otherwise, you will learn how to concentrate and relax, while you lose the hard earned capital.
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