Seeing Things
We Can't Build Our Dreams on Superstitious Minds
Even the most seasoned traders admit to peculiar beliefs that guide their actions. Maybe they have a lucky pen. Maybe they avoid trading during "unlucky" hours of the day. Maybe they believe in "hot hands" and momentum, where past results influence future trades. Or maybe they wear a lucky shirt on match day (i.e. a team shirt that, as of writing, doesn't have the word "Manchester" anywhere on it).
This is normal and predictable. Superstitions stem from a need for control in environments filled with uncertainty, such as trading. Knowing that trades can go in a completely different direction to what we hoped, rituals and beliefs offer psychological reassurance. They are things we can control. And they become habits because we are wired to find patterns, even when none exist. A trader who wore red boxers during a winning streak might link their undies to success.
Superstitions have positive and negative effects. On the positive side, they can boost a trader's confidence, encouraging more decisive actions. Rituals can also help establish a routine, providing structure and focus. A superstition that helps a trader stay calm and focused inadvertently contributes to better decision-making. However, superstitions may also cause traders to ignore important data. Also, emotional attachments to superstitions cloud judgment, resulting in irrational trades based on feelings. Thus, the danger lies in letting superstitions override rational thought. Successful trading depends on discipline, analysis, and adaptability, not rituals.
For traders who find comfort in their superstitions, there's no harm in indulging them…as long as they don't interfere with sound trading. To manage them, it's important to first acknowledge their role as psychological crutches rather than reliable predictors of outcomes. Traders should prioritise data, ensuring every decision is based on research and analysis. Also, if a particular belief consistently influences your behaviour, assess whether it aligns with your trading goals. This self-awareness maintains a rational and successful approach to trading.
So, embrace the rituals that keep you grounded but stay focused on the numbers that actually drive results.
