Benefits of Mindfulness in Trading

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
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