The power of the present in trading.

A characteristic of our way of learning is that it is based on associations. We have kept ourselves safe from danger and suffering at the cost of past negative experiences. The mission of our primitive brain, avoid pain or seek pleasure. In both cases, the brain highlights the moment following the action that takes place, taking away our power over the objective evaluation and the performance of the action itself.

 When we relate any event to the next event, we focus on “that” moment (the possible outcome) and abstract from being in “this” moment.

The mind will easily find itself wandering between past events and future possibilities based on present actions but rarely focused on those actions. The trader’s work is to train that focus in the present moment over past associations that shape the future outcome, to act rationally and make the best possible decisions even in situations of stress and uncertainty.

Avoiding those temporary connections in a way involves holding on to uncertainty. Accepting that we do not know what is going to happen will improve our appetite to do the best possible task without allowing ourselves to be contaminated by the fear of repeating past mistakes or even being inhibited from acting on previous negative results.

There is no correlation between the different market scenarios of each day and each trade will be unique in itself. It is about disciplining the mind to understand that the only moment over which you will always have control is the present moment. The best decision is not to make the same mistake “today” as “yesterday”, creating new scenarios where making new decisions “now” will allow to see better results “later”.