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The emotional bias on episodic memory recall of trading sessions.

What are the kinds of sessions that you remember off the top of your head? For many, there are those few sessions. When you think of trading sessions, there are always those few that instantly smack you in the face. The euphoria, the capitulation, the despair.

What would happen if all conscious, and more importantly, subconscious biases drew from only the extreme sessions? How could that type of bias impact your read on market-generated information? What would that do to your objectivity!

Suppose your episodic memory model for trading, on a very general level, looks similar to:

You remember the good, the bad, and forget all but the most recent of the mundane. Furthermore, you attribute the day type to the emotions felt.

For example, the last time there was a hard trend up you tried to find a top, and never found the top. The next time there is an opening drive, you are likely to already feel uneasy as it instantly recalls the feelings of that prior day.

This type of toxic bias can greatly influence the blank-slate objectivity that you want to bring to each session. So what is the trick to it? Seems one great practice is to continuously remind yourself of the mundane.

It will likely always be the case that the quickest pattern recall will be those that had the most limbic impact on you, however, adding something simple such as examples of the mundane to a morning prep can put you in an objective mental mindset.

Constantly revisiting what a normal session looks like keeps the human in control of the brain and limits the ability of the monkey to throw destructive thought patterns into the cognitive cycle.

Furthermore, knowing what trades and day types exist on the edges of your emotional distribution is critical to proper self-awareness. Knowing what is likely to influence your objectivity is the first step to being able to identify and recognize it in real-time.