Janice Dorn, MD, PhD
Neuropsychological Trading Coach
Janice Dorn, M.D., Ph.D., has been a full-time futures trader since 1994. Doctor Janice holds an M.D. in psychiatry and is board-certified by the American Board of Psychiatry and Neurology in general psychiatry and addiction psychiatry. She holds a Ph.D. in brain anatomy. A graduate of Coach University, she is a pioneer market psychiatrist and financial neurobehaviorist. Doctor Janice has written over 500 articles on the financial markets and coached over 600 traders worldwide. She is the Global Risk Strategist for Ingenieux Wealth Management Group, Sydney, Australia.
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Worry gives a small thing a big shadow…Swedish Proverb
Two weeks ago, I told you that I would tell you specific steps to take in order to minimize the amount of worry in your lives. Before I do that, I want to tell you a little more about worry, how it differs from fear, and the destructive effect it has on body and mind. I have chosen to devote several Trading Wisdoms to this subject in honor of the high-alert reverse symmetrical triangle (RST) situation issued multiple times by John Lansing to Trending123 subscribers. The RST is a pattern that appeals on many levels to people who tend marinate in worry.
When all is said and done, worrying is a habit. From the time we were children, we have all heard the mantra ”If you were grown up, you would understand why this or that is worth worrying about.” Our culture is one of anxiety, where every minute there seems to be something new to be added to our worry arsenal.
At the outset, it is important to distinguish between garden-variety worry and true anxiety disorders. There are several medical disorders that fall under the general rubric of anxiety syndromes. These are biological psychiatric conditions that require diagnosis and treatment by qualified professionals. Do not underestimate the significance of the following disorders and please seek appropriate medical help: panic attacks with or without agoraphobia, specific phobia, social phobia, obsessive-compulsive disorder, post-traumatic stress disorder, acute stress disorder, generalized anxiety disorder (due to medical condition, substance abuse or not otherwise specified).
Now back to the worrywarts! What is the purpose of worry? What are you getting from worry? What are you worrying about?
Research has shown that worry is a significant aspect of the life of every person in the world. There is always something to worry about. If there is not something to worry about, our brains have a strange way of creating worry. But worry must be differentiated from fear. Fear is about something that is real, something that we are experiencing in the moment. Our bodies are well-equipped to deal with fear since we know when the situation that is producing the fear begins and when it ends. Our brains are hardwired from the days of the caveman to react to fear for the purposes of self-preservation. The brain-body interaction is swift and automatic, and it's called "fight or flight." Either we run from danger or we stay and fight it. To do this, the body goes into a state of “high alert,” where massive amounts of adrenal hormones, including cortisol and norepinephine, are produced. This relatively short-lived phenomenon gives us a sense of strength and exhilaration to deal with the real and present danger. Our senses are heightened, our muscles are poised, we feel that we can tackle this situation, and our thoughts appear crystal-clear. Once the fear passes and we have gotten through it, a rest is needed. This gives time for the adrenal gland to replenish its stores of cortisol and for the brain-body hormones to come back into balance. There may be mental and emotional aftermaths to a severe fear situation, and these certainly can manifest as post-traumatic stress disorder or any of the other anxiety syndromes mentioned above. The importance of this aftermath must not be underestimated.
The situation with worry is quite different. Yes, we can develop anxiety as a result of a fear or trauma that we have experienced. However, most worry is not related to any real situation in our lives. Worry is about things we think or feel might happen and over which we have no control. Study after study has shown that we worry most about those things that deserve little or no worry. We worry about what, in the overall scheme, are minor incidents. Yet, they occupy the majority of the space in our heads. This is a kind of poison to our majestic fight and flight system. Why? Because it is a chronic stimulus to the release of cortisol and norepinephrine. It acts like a slow drip-drip-drip of the adrenal hormones we need to have available in times of true stress. By doing this, worry wears down and compromises the same brain-body mechanisms that need to be in peak condition for true fight or flight.
Once you have had a chance to think about this, its implications for the stressful world of trading, and what you do every night worrying about your trading positions, I will tell you why worry is interfering with your profits and a couple of things you can do about it. Meanwhile, please take a few minutes and write down everything you worried about today. Save the list, since there will be a quiz!
The reason why worry kills more people than work is that more people worry than work…Robert Frost
Until next time,
Good Trading and Brain On!
Janice Dorn, M.D., Ph.D.
janice@thetradingdoctor.com
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