The Trading Mindset: You Can’t Control the Market, But You Can Control Your Resp

[Henrik Ekenberg]

The Trading Mindset: You Can't Control the Market, But You Can Control Your Response 

Imagine this: the phone rings. Do you have control over when or why the phone rings? None. But what you do next is entirely within your influence. This simple analogy applies not only to your daily life but also to your thoughts, emotions, and trading decisions. 

In trading, as in life, unexpected events will arise—markets will move in ways you can't predict, and emotions will surface that you can't suppress. But your success doesn't depend on controlling the uncontrollable. It depends on how you respond. 

 

The Nature of Thoughts and Feelings 

Unpredictable and Automatic: 
Thoughts and feelings are like the ringing phone—electrochemical impulses that arise without your conscious control. 

- A sudden surge of excitement during a breakout. 
- A wave of fear after a losing streak. 
- Frustration from missing a trade. 

Neutral by Default: 
On their own, thoughts and feelings have no power. What gives them weight is your engagement with them. 

 

What You Can Control 

The key isn't trying to stop the ringing phone or suppress your thoughts—it's about choosing how to respond. Here's how this applies to trading: 

1. Recognize the Impulse 
- Acknowledge your thoughts and feelings without judgment. 
Example: "I feel anxious about this trade," or "I'm excited about this breakout." 
Key Skill: Awareness is the first step to regaining control. 

2. Decide How to Respond 
Just as you can choose to answer or ignore the phone, you can choose how to engage with your emotions and thoughts. 
- Engage Constructively: Use the thought to reinforce discipline: "I'm anxious, but I'll stick to my stop-loss." 
- Disengage Unconstructively: Avoid spiraling into overthinking or letting emotions dictate actions. 
Key Skill: Pause before reacting. Ask yourself, "Does this thought serve my trading goals?" 

3. Focus on Your Process 
- Redirect your attention to what you can control: your trading plan, your risk management, and your discipline. 
Example: If you feel fear creeping in, remind yourself that you've already predetermined your stop-loss and position size. 
Key Skill: Process-driven trading reduces the power of emotional impulses. 

 

Applying This to Trading and Life 

When you master the ability to influence your response to thoughts and feelings, everything—trading included—becomes easier. Here's how this mindset shift impacts key aspects of trading: 

1. Emotional Control 
- Before: Reacting impulsively to fear or greed leads to overtrading or abandoning your plan. 
- After: Recognizing emotional triggers and consciously choosing not to act on them builds consistency. 

2. Discipline 
- Before: Letting frustration from a previous trade spill into your next decision. 
- After: Accepting the thought without engaging allows you to reset and follow your rules. 

3. Clarity 
- Before: Allowing intrusive thoughts to cloud judgment and create doubt. 
- After: Focusing on your process ensures decisions are based on strategy, not emotion. 

 

Final Thoughts: The Power of Influence 

You can't stop the market from moving unpredictably, just as you can't stop the phone from ringing or thoughts from surfacing. But you can control your response. 

By learning to disengage from unhelpful emotions and refocusing on what you can control, you unlock a powerful skill for both trading and life. The result? Greater clarity, discipline, and ease in navigating even the most challenging situations. 

Remember: The market doesn't define you—your response to it does.