What is the Flow State in Trading?
Picture a trading session where every decision is intuitive, every move feels right,
and you're completely absorbed in the market's rhythm.
That's the Flow State for traders. Here, you're at your peak performance;
market noise fades away, time distorts, and your senses are tuned to the slightest market movements.
Where Did the Concept of Flow Come From?
In a time when psychology focused on fixing problems, Mihaly Csikszentmihalyi (yes, it's a mouthful) was intrigued by why people do things without clear rewards.
He noticed that across different activities like sports, music, or even chess, people in their happiest states were often in this 'Flow'. His research led to understanding how to replicate these peak experiences for optimal performance and joy.
How Can You Get Into the Flow State?
There are 11 triggers that can lead you into Flow:
Internal Triggers:
Challenge-Skills Balance - The task should be challenging enough to be engaging but not so hard that it causes stress. Ideally, it's about 4% beyond your current skill level.
Clear Goals - Having precise goals helps concentrate your efforts and direct your energy.
Immediate Feedback - Real-time information on how you're doing helps you adjust and stay focused.
Complete Concentration - This means being totally absorbed in the present, cutting out all distractions.
Autonomy - When you control your actions, motivation comes from within, facilitating Flow.
Passion, Purpose & Curiosity - When your heart is in it, your focus naturally follows.
External Triggers:
Risk - A bit of danger or high stakes can sharpen your focus.
Novelty - New or unexpected elements can excite and engage you, though too much might overwhelm.
Complexity - Tackling something intricate requires and rewards deep concentration.
Unpredictability - When things don't go as planned, you're forced into the now, enhancing presence.
Deep Embodiment - Total engagement of your body, emotions, and senses in the task at hand.
What Happens in Your Brain During Flow?
Surprisingly, the part of your brain responsible for overthinking, the Prefrontal Cortex, actually quiets down, a process called Transient Hypofrontality. This means less self-doubt, more action, and a smoother flow of decisions.
The Neurochemistry of Flow:
Dopamine: Enhances motivation, focus, and pattern recognition.
Norepinephrine: Increases arousal and narrows your focus.
Endorphins: Acts as a natural painkiller, reducing discomfort.
Anandamide: Boosts lateral thinking and diminishes fear.
Serotonin: While more of a reward after Flow, it helps with mood stabilization.
The Flow Cycle:
Flow isn't a switch; it's a cycle:
Flow is often seen as a single, spontaneous event, but it's actually part of a repeating cycle that requires a bit of practice to harness fully.
Understanding the phases within this cycle helps us see that Flow is more predictable and achievable than it might seem. The cycle includes four distinct stages:
Struggle - The initial effort to focus.
Release - Letting go which allows Flow to occur.
Flow - The state of optimal performance.
Recovery - Replenishing after the intense mental and physical work.
Who Experiences Flow?
Flow isn't limited to elite athletes or artists in the throes of creation - anyone can enter this state, even while doing daily tasks.
Whether it’s finding a rhythm in your work, losing yourself in a hobby, or achieving complete focus on a goal, Flow is available to anyone willing to engage with the cycle. Yet, while Flow is accessible, certain barriers can make it elusive.
Barriers to Flow:
The Ego - Can prevent you from engaging with necessary triggers like complexity or unpredictability.
Anxiety - Creates mental noise, pulling you out of the moment.
Living in the Past or Future - Flow requires presence, not reminiscence or anticipation.
The Dark Side of Flow:
The neurochemical buzz from Flow can be addictive, leading some to push boundaries too far, potentially at great risk.
With that balance, Flow can become an incredibly valuable asset in life. So, how do we access it reliably in our trading?
Trading Psychology Techniques to Enter The Zone:
Mindfulness - Training to stay in the present moment sharpens your ability to enter Flow.
Thought Regulation - Managing your thoughts to prevent them from becoming distractions. Working with a Performance Coach can help you manage your thoughts and boost your ability to access Flow.
Set Clear Goals - Specific goals keep your focus sharp and in the now.
Hack Your Brain Chemistry - Activities like cold exposure or listening to music can pre-emptively boost your Flow-inducing chemicals.
Finding Flow
While getting into Flow isn't as simple as flipping a switch, by understanding and applying these elements, you can make it more likely to happen. If enhancing performance and enjoyment is your goal, mastering Flow could be your path.
If you’d like more help getting out of your own way, getting into the zone and optimising your trading performance, get in touch and we can work together through my coaching program to take your game to the next level.
Good luck Flowing
Thanks for reading!
Alan
About Alan
Alan Edward (aka The Divergent Trader) is an impactful speaker, author and high performance expert. A Full Time Trader by profession. Alan is the founder and CEO of Divergent Trader a private financial firm that educates, coaches and supports traders.
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