We’ll see very important zones that we need to improve our results in trading! As a trader, you are always emotional, but not all emotions favor us. Some of them have a very negative influence on what we can achieve.
The objective will not be to eliminate our emotions but to be able to enter those states that will help us. And get out of those that play against us. keeping this in mind we can divide our emotional states into 4 zones. So, let’s learn to align them in our favor!
Blue is one of the most important zones
We define the blue zone as the interaction between a high activation and a positive charge. In the blue zones we are almost full. And what we feel is positive and pleasant. Time seems to disappear, and we remain absorbed in the present and in what we are doing.
The blue zone is the zone in which we can place ourselves for excellent performance. In that zone we flow with the reality of the market and with the information that is always unfolding. Trading is easy for us, and we can follow the story that the price is telling. So, from there trading is pleasant and we feel that we have easy access to the necessary resources. We feel capable and confident of our abilities in that area of work.
On the other hand, we have the red zone which we enter each time we feel threatened or afraid. Or when we make absurd mistakes. In that zone, the emotions are also very intense, but the charge is negative. So you must control this one!
We are angry, disgusted, and frustrated. We want to attack the market. These are the events that have the potential to put us in the red zone, you see a selling opportunity and we hit the wrong button and buy. We must learn to recognize when we are in that zone. On the other hand, we have tools and working models to get us out of there because we cannot carry out competent trading.
Black zone, what is it?
The green and black zones both have a low level of activation. The black zone accompanies this low activation with a negative charge. And it is what happens when we have spent too much time fighting for results that do not arrive.
This is the zone in which we feel burned out. The frustration is permanent and accompanies us like a cloud that darkens our days. We do not get the kind of results we want, and we feel fatigued which can affect our rest. And we can start suffering from anxiety, insomnia, which is not good. Once you are in the black zone, it does not matter what you do because you think that you are not going to achieve it. We can feel that nothing is useful! It is a similar state in psychology that is known as learned helplessness and puts us on the verge of depression.
One of the most important zones. It is a zone of low activation, but with a positive charge! It is the green zone in which we overcompensate our learning, in which we grow as traders!
In this zone we decompress, it is the warrior’s rest. We are in the green zone when we carry out relaxing activities that allow us to activate after the blue zone. And it is where we want to go after being in the blue zone. When we act from the green zone we allow learning to take place and we recover quickly after high performance sessions against the market.
Now you know the trading zones! The ideal is that we can stay in the green zone and in the blue zone. Plus, be able to get out of the red and black zones as soon as possible.
We hope that this article can be of great help. And, of course, that you have been able to identify each of the trading zones.