Intrusive Thoughts, Cognitive Fixation and Overthinking Affecting Traders
The Psychology Behind Cognitive Fixation and How to Get Out of this State
Find the audio version of this post at the bottom.
The other day, I was trading, and a thought resurfaced in my mind about a loss I had two years ago. I couldn’t understand why it popped up or if something triggered it. What started as an intrusive thought soon became a mental state. All I could think was, "If it happens again, what will I do?" It began affecting my decision-making.
When an intrusive thought takes over your mind, it can be a real challenge to get rid of it.
The irony is that the more you want to forget about the thought, the more it persists. It becomes this battle between you and your conscious mind.
The excerpt above is from one of my clients, and it illustrates cognitive fixation—the state of fixating on an intrusive thought that surfaces out of nowhere.
Ever happened to you?
In this state, you merge with the thought, trying to solve it or find an answer to it. The result? You exit the flow state and undermine trading execution.
Today, we'll explore how to break free from cognitive fixation and effectively handle intrusive thoughts surfacing while you are trading.
By the end of this read, you will feel understood and learn strategies for overcoming this mental challenge the next time it occurs.