Continuation from Thursday…...While the example above is hypothetical, the STRESS associated with it is as real as it gets. Having gone through a similar experience myself, minus the Russian mobster, and having a number of friends collapse under similar circumstances, this IS about as much STRESS as any normal human being can take. In fact, the STRESS energy becomes so overwhelming at that juncture that death and self destruction are literally inches away.
Again, while the example above represents an extreme and compressed version of STRESS and associated energies, it is something that all of us deal with on the daily basis. Whether its work, family, personal life or something else. And while our daily STRESS levels might be spread out over an extended period of time, unlike the stock market example above, at the end of the day we all suffer the same.
Is there anything we can do to separate from this emotional rollercoaster?
Absolutely. In order to stop STRESS energy in its tracks, before transforming it, three things are necessary.
- A strict set of rules.
- Living in the NOW.
- Separation, Control & Meditation
Implementing a Strict Set of Rules
Let’s go back to our stock market example for a second. It was entirely unfortunate, but Jimmy’s downfall was sealed long before he bought a single share of that stock. As most of us, Jimmy operated on human emotions and feelings. Greed, fear, hope, desire, anger, joy, sorrow, etc….. He was not in control. His research gave him a false sense of security as he hoped that the stock in question would continue to go up indefinitely. He never considered nor prepared for a possible loss. A sure recipe for disaster.
Most human beings operate in exactly the same fashion in their everyday lives. They are like leaves in the wind. A little gust to the left and their entire day goes sour. A little to the right and they are as happy as they could be. Without even realizing the fact. Relying entirely too much on external circumstances, outside stimuli and their emotional states as opposed to paying attention to what is really happening in their lives. That has to change if people are interested in removing STRESS energies from their lives.
One of the first requirements in doing so is to set a strict set of rules in an environment that brings STRESS into your life. For instance, Jimmy J. could have prevented his predicament with a few simple rules.
- Jimmy’s Rule #1: Implementation of strict trading rules. Without room for any sort of deviation.
- Jimmy’s Rule #2: Setting a firm price (based on his analysis) or a stop loss order at which Jimmy would have liquidate/sold his position.
Not only do these strict trading rules take all the guess work out of the equitation, more importantly, they remove emotions and feelings out one’s decision making process. Removing STRESS energies in the process. For example, let’s assume that Jimmy’s trading rules clearly instructed him to sell his position in stock XYZ if its price hit $9 a share. If Jimmy would have had this clear understanding from the beginning, he would have been acutely aware that his losses would be limited to $100,000. In the worst case scenario. Removing uncertainly and therefore STRESS from the picture.
It is important to note that such “Rules” must be exact and without any room for deviation. Typically, your mind and your emotions will play cruel tricks on you if you do leave room for deviation. Going back to Jimmy, if he would have left room for any sort of divergence, he would found himself in the same place where he actually ended up.
Allow me to illustrate just how cunning the mind can be if Jimmy deviated from his iron clad rule of selling at $9 a share.
- The stock price hits $9 a share.
Jimmy’s Cunning Mind: Well, let’s wait until the stock hits $8.50. My technical setup shows that it cannot possibly go lower. If I sell now, I will lose $100,000. I am sure the stock will bounce back to $13 in a few days. Its option expiration date. The stock market always does that.
Outcome: Jimmy does not sell.
- The stock price hits $8.50 a share (STRESS levels are going up).
Jimmy’s Cunning Mind: It can’t possibly go any lower. These sellers are fools. This is at least a $30 stock. I am going to hold. I am sure it will turn around tomorrow.
Outcome: Jimmy does not sell.
- The stock price hits $7.00 a share (STRESS levels are now extremely high).
Jimmy’s Cunning Mind: This is F*$# stupid. There is no reason for this stock to go this low. I wish I had another Million. I wish I could buy more. If I did I would make a fortune.
Outcome: Jimmy does not sell.
We all know what happens next. Point being, Jimmy J. was too lenient on his own rules. What started out as an innocent $0.50 cent deviation, ended up in an absolute disaster. And this is the KEY point you must be aware of. First, you MUST NOT deviate from your original set of rules. No matter what. Come hell or high water, you MUST stick to them. Second, you MUST be aware that your mind will begin to play tricks on you. It will ask for just a little bit more, an inch, a penny, a feather in order to push the underlying situation just a tiny bit further. Opening the gates of hell in the process and bringing STRESS energies back into your life. Just remember, be firm and unabated; stick to your Rules, always and as if your life depended on it.
To Be Continued On Monday…….(Why Am I Seeing This On A Financial Website?)
How To Avoid Stress Google
Continuation from Friday…..
