(I originally wrote this for the SMB Capital guest blog )

Being very aware of what you’re thinking and feeling is a critical component of self-management.  And self-management has a huge impact on how we make decisions. As we move from one mental state to another, our body, including our posture, and breathing, plays an important role.  So, learning to tune into your body is a big part of self-management.

There is an abundant amount of research in psychology, medicine, and in business that shows how posture plays a role in communicating emotional state and influences our decisions and actions. In fact, many technology companies have departments that conduct research on user interface and nonverbal behavior. Microsoft calls their department, Decision Theory and Adaptive Systems Group.

We have both a central nervous system (brain and spinal column) and a peripheral nervous system (nerves that extend throughout the body). The two systems communicate with each other and have a profound impact on decision-making and behavior.

Try this. Spend a few minutes sitting slouched, with your shoulders slumped, legs stretched out, chin dropped toward your chest.  Next, spend a few minutes sitting up straight or slightly forward, raise your chin and lean your head slightly to one side. Notice a difference in how you feel and the type and quality of your thoughts?

Not only does our posture impact our internal state, our body can also act as an emotional warning system. And if you think about it, that can be very helpful in trading. We may be following price action, order flow or something on the chart as an indicator to help us decide what to do; we can also use our body as an ‘indicator’.

Being aware of your emotional state is an important part of learning how to control your actions. Many people have difficulty tuning into their emotional state. Focusing on physical sensations throughout the body can help you become aware of your emotional state. Tense shoulders, butterflies or ‘pit’ in the stomach, clenched fist, muscle twinge, ‘nervous tick’, heart rate variability, and depth and rate of breathing can be examples of an emotional state reflected in one’s physiology. Our emotions are a form of self-communication, when we learn what the message is, we can often make better decisions.

In my work with traders, I sometimes recommend a standing desk, instead of sitting, for traders that have an attention or focusing issue.

Many people, including traders, report that regular practice of yoga helps them maintain body awareness as well as reducing stress.

Possibly the single most powerful thing you can do with your body is to become aware of your breathing and change it, if necessary. When trading, anxiety and tension can overtake us, often resulting in decisions and actions that our not in our best interest as a trader. As traders, we must learn to use all the tools available to us, including our own body, to make better decisions and learn to take control of our actions.

Here’s a simple but very effective technique I refer to as “breath first aid” because it can quickly alter your internal state and influence your decisions and behavior. Take four long, slow deep breaths, filling your abdomen (not your chest) with air.  Pause for a second at the end of each inhalation and exhalation. And if possible, inhale through your nose and exhale through your mouth.