Trading forces us to interact with the market, where price is objective – everyone can see the same thing. But human nature makes us subjective, that’s just part of being human, seeing the world (and the market) through our own filter of beliefs, hopes, and fears.  

The way to maximize performance in a situation where the objectivity of the market interacts with human subjectivity is to understand how your own subjective filter operates.

We have to do this for a number of reasons, with the big one being that the market will trigger our psychological vulnerabilities – sometimes I refer to them as our unmet developmental needs….the need  for approval, etc.  As traders  we must  understand how our personal filter operates and how it shapes our view of the market.

This is why having rules is not enough, promising yourself you’ll do better is not enough. We must really dig deeper and understand what makes us tick so we can be prepared for the inevitable triggering of our vulnerabilities.