I am very excited to be able to offer the twenty-fifth in my series of posts asking Pro Traders (Investors) about their psychological processes. Delving a little into how it feels to them when trading / investing. The good and the bad. How this has changed over time and what preparation they do mentally for performing as a trader / investor.
One of the key features for me was that I wanted traders / investors with experience who have been through the mill over the years and of course those who were kind enough to broach this subject publicly. This I hope gives developing traders / investors more to learn from.
I’m very fortunate to have a great line up and this week is:
Trader: Anne-Marie Baiynd
1) How long have you been trading?
This September will make it 9 years
2) What style of trading / investing do you practice (technically driven, fundamental, systematic, a combination etc)?
Technically driven with some attention to fundamental performance.
3) How do you feel when a trade goes against you?
Truthfully, I am always a little anxious when a trade goes against me for any period of time….say more than a week or so. I begin to immediately look for reasons that I might be wrong. If I cannot find anything significant, I will sit on my hands.
4) How do you feel when an investment goes for you?
What can I say, I live in a heightened sense of awareness if I am engaged in the market in any form or fashion. I constantly look for reasons I might be wrong. I react the same way – if I cannot find anything significant to nullify why I entered the trade, I will continue to stay in the trade.
5) How have these feelings changed over your trading career? (Can you recall how you originally used to feel and elaborate on how this has changed over time?)
I was a very emotional trader who thought she was not emotional at all. The worst kind of trader- self deceived-makes for a lot of losses. When I figured out that who I thought I was and who I really was, the road to success began. But not before I had lost a great deal of money. It was a slow process for me, but I never gave up.
6) Do you have any practices that you do away from the trading screen to help you mentally and emotionally handle trading?
I try to disconnect completely from my screens when I am away. Whether it is at the end of the day or when I take time away. I spend so much time in a heightened sense of awareness, that I exhaust myself at the end of the day, and in order to replenish and be sharp the following day or week, I must disconnect.
7) Have you always done this?
Definitely not. I learned that less is more when I believed that more is better. I burned myself out and got very sick from 20 hour days, and thinking about the market through interrupted sleep for the remaining four hours. My body finally told me it was time to create balance or I was not going to be able to enjoy retirement.
8) If not, how have you learnt to deal with the feelings that come up when trading?
Feelings are real and must be managed; if they are suppressed they rise up in the worst places. I learn to listen to my ‘center’. The solar plexus and lower back are spaces that I feel a lot of physical tension, so I work through mentally why I might be feeling that building in myself. If I realize it is a feeling coming from fear or worry, I immediately stop what I am doing and begin to triage the event. I know that sounds antiseptic, but it really isn’t. It’s about learning to understand myself, and why I feel a certain way. Usually if my gut begins to tell me that I am wrong, I usually am, so I have learned to listen to my core.
9) Can you describe a time in your trading life which really rammed home the point that so much of trading comes down to psychological factors?
When I became technically proficient but still could not stay green week over week, I knew I was missing the really important part. It is not about the knowledge base, but the execution events that make or break the trader. And execution, consistent execution over time, cannot continue if personal and psychological management are not made paramount.
10) If you could give aspiring traders / investors one piece of advice about emotionally handling the market what would it be?
Don’t be afraid of your emotions. Don’t stifle them. That doesn’t work. Our success is not about how much knowledge we have, but how we make decisions when our senses are heightened by fear or anxiety. Realize that we are wired to take risks in the wrong places; that we are wired to wait until the last minute, and that we can’t stand being wrong so we must re-engineer our minds to manage those facts.
I’d like to thank Anne-Marie Baiynd for sharing about the way she tackles the market from an emotional / mental side of things and for her willingness to allow me to post this as a free resource in the hope that traders who have been in the market for less time or are thinking of entering can perhaps pick up some A-HA’s.
If you are interested in finding more out about Anne-Marie Baiynd you can find her here:
Blog / site: http://www.thetradingbook.com/
Previously in the series:
Charles Kirk - read it…..here
Matt Davio - read it…..here
David Blair - read it….here
Mike Bellafiore - read it….here
Mark Holstead - read it ….here
Brian Shannon - read it…. here
Mike Dever - read it…. here
Anthony Crudele - read it… here
Derek Hernquist - read it … here
Ivan Hoff - read it… here
Brian Lund - read it… here
Greg Harmon - read it… here
Michael Bigger - read it… here
Jon Boorman - read it…. here
Darrin Donnelly - read it….. here
Stephen Burns - read it…. here
Tony Rohrs - read it…. here
Bruce Bower - read it…. here
Richard Weissman - read it… here
Larry Tentarelli - read it… here
Chris Ebert - read it… here
David Merkel - read it… here
Ian Cassell - read it…. here
Derald Muniz - read it…. here
Disclaimer: Embrace The Trend / Richard Chignell does not provide investment, financial or product advice. If you are going to trade / invest it’s at your own risk and you must take responsibility for your actions.