The 4 Step-Process to Heal from Trauma

Many trading problems can be traced back to experiences long before a trader begins trading. These mistakes may only become apparent in the context of trading, but many times they stem from past traumas.

In my previous newsletter: “Has Your Overtrading Become an Addiction?”, I explained the link between trauma and addiction. In today's newsletter, I'll share with you how you can work towards healing past traumas to deliver your full potential in trading and in life.

Although medication can have tremendous benefits in alleviating trauma symptoms - such as anxiety, stress, and depression - it doesn’t directly operate on the fear circuits of the brain. For that reason, I won’t talk about medication and I'll focus on professional methods that have a direct impact on the fear circuits for trauma cure.

There are various treatment approaches to trauma, but I'll be sharing the 4 phases that are common to all of them and what makes them so effective.

This newsletter is for those interested in human psychology or simply in their own psychology and the why behind certain behaviors. If you keep returning to bad behavioral patterns but you're not aware of any past trauma, I recommend reading my previous newsletter before diving into this one.

Let’s dive in!

Phase 1 - Extinguish The Threat Element

When a person experiences a traumatic event, the brain stores the memory of that event along with the emotional response associated with it. This emotional response is controlled by the amygdala, which processes emotions and triggers the fear response.

When the fear response is triggered by something that makes us remind of the trauma (consciously or subconsciously), numerous events occur inside our body that activate the fight or flight defensive mechanism, the freeze mechanism, and a ton of other visceral reactions that prepare us for action.

The first step of the process is to remove the threat element from the equation. We don't want to forget about what happened or how we felt, but we want to break the connection between the traumatic event and the fear it causes.

The way this is achieved in psychology methods is by retelling the traumatic event in deep detail to the therapist or counselor, multiple times.

During each retelling, the memory of the traumatic event is brought back to mind and is then re-stored in the brain. The key is that during this process, the emotional response associated with the memory can be modified or even erased. This is because when a memory is reactivated, it becomes temporarily unstable and can be updated with new information.

The first recount of the traumatic event can be really hard to handle because the amplitude of the fear response triggered is high. We might feel like we're back in that moment, reliving the trauma. But the more times we retell the story, the easier it gets. The amplitude of the threat reflex diminishes with each recount. It's like our brains are learning that it's safe to invoke the traumatic event.

Phase 2 - Associating A New Narrative

Here's the thing about habits: you can't just break them. You gotta replace 'em.

That's especially true when it comes to trauma. When we go through a traumatic event, our brains create an association between the scary thing, which can be any element of the traumatic event, more specific or broader, and a feeling of fear. That's what gives the scary thing its power.

But the good news is that we can create a new association. We can replace the old narrative with a new one that's more positive. And the way to do that is by tapping into the dopamine circuits of the brain which are surprisingly involved in the threat reflex or fear response. This is what makes possible the new association of a positive narrative and it also explains, why people with trauma tend to get involved in some type of addiction (substance-wise or behavioral).

Neuroscience research has shown that creating new associations and reinforcing them can lead to changes in the brain. These changes involve the modification of existing neural pathways and the creation of new ones. This process is known as neuroplasticity and is essential for learning and adapting to new situations.

Let's say you're a kid who got rolled by a wave in the sea and now you're scared of going in the water. The key to replacing that old association with a new one is to start associating positive feelings with the sea. That means taking it slow and experiencing little victories along the way.

Maybe you start by dipping your toes in the water or splashing around in the shallow end. Maybe you associate the feeling of freedom with being in the water, or the joy of swimming. The idea is to find things you already enjoy and attach them to the sea.

Over time, as you build up positive experiences, the old narrative starts to lose its power. You start to associate the sea with good things instead of fear. It's not a quick fix, it requires open-mindedness, persistence, and patience.

Phase 3 - Link the New Narrative Back to the Traumatic Event

Phase 3 of trauma healing may seem counterintuitive, but it’s a crucial step in reinforcing the new narrative and fully overcoming the trauma.

After replacing the old fear narrative with a new positive one, we need to link back the new narrative to the traumatic event.

This step is based on the principles of memory reconsolidation, which is a process in which previously consolidated memories are recalled and modified with new information.

When we recall a traumatic memory, the neural pathways associated with that memory are reactivated. This makes the memory more malleable and susceptible to modification. By linking the positive narrative with the traumatic memory, we are essentially modifying the memory to include a new, positive association.

Additionally, the amygdala, which is the brain region responsible for processing emotions, is closely linked with the hippocampus, which is the region responsible for memory formation. Studies have shown that positive emotional experiences can enhance memory consolidation by strengthening the connections between the amygdala and hippocampus.

Therefore, by linking the positive narrative with the traumatic event, we are enhancing the consolidation of the new positive memory and making it more resistant to future interference.

The child who was once frightened by a wave and is now able to swim in the ocean with enjoyment may reflect upon their experience and think to themselves, "Despite being toppled by a wave in the past, I can now enjoy the ocean once more." This act of connecting a positive experience with the past traumatic event strengthens the new positive association.

Phase 4 - Reinforcement

Phase 4 of curing trauma is all about reinforcement. Once a new positive association has been established, it's important to strengthen the new neural pathway by repeating it over time.

This means that the person needs to be exposed to the trigger in a safe and controlled environment, and respond with the new positive narrative that has been associated with it. By doing this repeatedly over time, the brain learns that the new response is the correct one, and the old fear response becomes weaker and weaker.

Reinforcement can take many forms, such as exposure therapy, cognitive-behavioral therapy, or simply practicing the new response in daily life. The important thing is to continue to reinforce the new positive association over time, until it becomes the automatic response to the trigger, and the old fear response fades away.

Final Words

If you're struggling with the effects of trauma, it's important to know that healing is possible. Don't let fear or doubt hold you back from seeking support. You don't have to see a clinician right away but don't let that stop you from starting to work on yourself. You can talk with a friend, or family member, or start a personal journal. The key is to find a way to express yourself and reflect on your thoughts and experiences.

If you notice unwanted patterns in your behavior, whether in your daily life or in trading, it's worth exploring the connection between these behaviors and your past experiences. It might be uncomfortable to look inward, but it's the first step towards growth and understanding yourself better.

I’d love to hear your thoughts on this newsletter. Feel free to leave a comment below with your thoughts and experience.

With love,

Sara

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