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ting a speeding ticket, or being late for an important appointment, self-talk is what comes out of their mouths as a self-condemning reaction. |
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This self-talk is usually coming from two basic parts of us: A critical parent voice (the part of us that has internalized our parents) or an adult, rational ego voice. When it comes from the adult rational ego, it is usually heard in the form of guidance, support, instruction, or for self-orienting, self-affirmation, and self-stabilizing. |
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Self-talk is useful to keep us on a specific, disciplined path that we might be wavering from. For example, we may have set a certain limit at which to sell a stock. But if we have not put in a limit order to sell ahead of time, when the stock price reaches our limit, we need the discipline to go ahead and follow our plan. |
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Now, as the stock hits the limit, it is easy to second guess and say inside, "Ah, maybe you should hold on a while and see what happens. Maybe we could squeeze a little more out of this." If we hear this internally, we can say out loud, "No, go ahead and follow your plan. Sell the stock and move on." This can be a useful kick to go ahead and take action. |
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Examples of self-talk that may temper or neutralize greed and fear, all of which should be said out loud right as the event is occurring, include the following: |
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1. "Stop watching the quotes and go ahead and execute the trade." |
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2. "Take a five-minute break; you're starting to get anxious." |
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3. "Turn off the sound to CNBC; they're contributing to the frenzy." |
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4. "Stay where you areno need to chase that stock. Wait until it comes back to you. No need to get desperate." |
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5. "Stand up and stretch; you need some air." |
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6. "Stay with your plan; don't get scared (or greedy) now." |
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Begin to notice what you are saying to yourself when you talk out loud, both out in the world at large and while trading. Some people tend to speak out loud to themselves often during the day, while others tend to hear the same kind of statements in their heads but don't say them out loud. Sometimes self-talk comes out as a barely audible mumble. In whatever form it tends to surface for you, pay close attention to it and don't shy away from putting it out clearly, especially when alone during trading. |
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