Mindfulness in trading can be of significant benefit to traders. Mindful trading will positively impact traders and their trading in a number of ways:
- Reduce loss aversion
- Mitigate the disposition effect (i.e., cutting winning trades short and letting losing trades run)
- Help traders get into “the zone”
- Reduce the negative effects of cognitive biases and heuristics on trading decisions
- Directly reduce stress
- Help traders see the market more clearly
- Increase awareness of the trader’s internal state and how it impacts their trading
- Increased ability to maintain focus on the market and the trading task at hand while trading, even when emotions are running hot
- Increase internal emotional regulation
- Other positive effects on trading and trading behavior