The Market as A Mirror

In my experience as a trader and coach, I have come to see the market as a big, gigantic mirror. So, when we look into it (or trade in it) we see ourselves!

What does that mean? Well, as traders, we are focused on things like charts, implementing strategies, using indicators, seeking out opportunities for gains, experiencing excitement and hope, etc. The market includes all this, but at a deeper level, interacting with the market is an opportunity to see one’s self. 

When you trade, you probably experience some emotion– calm, fear, anxiety, elation, resistance, uncertainly, confidence, etc.  These emotions are common for traders to experience, but you may or may not allow yourself to be aware of them. 

The emotions we have while trading are not about the market, although they seem to be.  These emotions and reactions are inside you. The market “triggering” you, like a bully poking his finder in your chest.

So the “mirror” just means the market is a place which can provide you a reflection of yourself. Whatever is brought up by trading can now be seen if you are willing to look.  If you knew that taking a “look” at what comes up, and allowing this awareness would help your trading, would you the be curious or interested?

The trading books, schools, and teachers talk about discipline and how key it is. They tell you to “not move stops,” “follow the plan,” and “manage your risk”. This is great advice, in theory. But, in reality, can traders follow this advice? If you tell an alcoholic not to drink a forth beer after he has three, does it mean he’s going to stop? No. 

I’m not calling us addicts as traders… but sometimes we act like it. Probably most traders can relate to not doing what we know we’re supposed to do.

My job as a trader coach is to help you become aware of what’s being reflected back from the trading “mirror”. As you become aware of it, you can change it. Using the market as a mirror helps you see yourself. You can then “shift” yourself. For example, I help traders be less reactive, impulsive, hesitant, etc. so they can trade from neutrality. 

So, the market shows you where your bad habits and reactions are. You become aware of this so you can alter it. This entails realizing that your trading challenges are predominantly due to what is inside you (or reflected in the “mirror”) rather than from the market. It is confronting to look at yourself. Many people go their whole lives without looking at themselves.

This concept may be new to you, but it is the core of what many traders deal with. It is the reason most lose money. If you want to explore these ideas further, contact me for a private consultation.