Hello all. I typed this up as an add-on to my recent CNBC Video Blog (GREED….or FEAR) which has been getting quite a bit of feedback.
Fear is What Drives Us
I have found that the deep fears and insecurities are what motivates top performing traders. That being said, the money really is not the driver - it is what the money represents (ego fulfillment, self confidence, justification of value, measurement of success, proof to the world or their peers that they are not losers). All of this is in a desperate effort to fill a void that exists at their core.
Once they establish “financial success” then it becomes a fear of “losing it” (either the money or their reputation)”
I would like to add, however, that in my coaching process (which is focused on achieving peak performance and not life coaching), I have found that a cognitive approach is not very effective in getting traders to modify their destructive trading behaviors; especially if they have had success over the years despite their destructive trading behaviors.
As a result, I spend less time getting them to understand the root WHY behind their dysfunction and instead help them quickly and clearly identify the dysfunction - and then implement behavior modification (via a strict behavioral approach) to get them to implement the change needed to improve their performance.
I have found that taking a John B. Watson-type approach not only allows them to extract the emotions from the situation and be more focused on the cause-effect; reward consequences of their actions but also gives them the quick results they desire as a result of being in a game based on immediate gratification and feedback.
Dr. Doug
