Perception is the process of recognizing and interpreting sensory stimuli. Learn the definition of perception, how it is related to the five senses, how it differs from reality, and more. Think of it this way. Perception acts as a lens through which we view reality. Our perceptions influence how we focus on, process, remember, interpret, understand, synthesize, decide about, and act on reality.
Here are a few phases of Perception:
1. Selection
The number of stimuli we are exposed to daily exceeds our capacity. For this reason, we need to filter and choose the information we want to perceive. This selection is done through our attention, experiences, necessities, and preferences.
2. Organization
Once we know what to perceive, we need to gather the stimuli in groups to give them meaning. In perception, there is synergy, since it is an overall recognition of what is perceived and it can’t be reduced to separate stimuli characteristics. According to Gestalt principles, stimuli organization is not random but instead, it follows specific criteria.
3. Interpretation
When we have organized all the selected stimuli, we then proceed to give them meaning, completing the perception process. The interpretation process is modulated by our experience and expectations.
Here are a few ways you can fine-tune these Phases:
Selection
Remove the unnecessary noise that may affect your mindset whilst trading. Examples of noise may include, Phone Notifications, Surrounding Noise, Messy Room where you trade, New Strategies, Other Traders’ analysis. These are some examples of things you should train your mind to remove. This ensures that the information we perceive and absorb is all necessary & not diluted with lots of other unnecessary information.
Organization
1. Organize Your Thoughts
Understanding what is going through our mind is one of the most important things as a Trader. Sometimes we say, “I can remember what’s going through it, I don’t need to write it down”. Have you ever heard a Painter say that? Think of your thoughts as a beautiful painting, you need to write them down to be able to visualize your thoughts which then leads to ACTION.
2. Organize Your Day
Creating a schedule allows you to plan your day out which creates structure and also allows you to have an organized & smooth day. This ensures that you utilize your time throughout the day wisely.
3. Organize your Trading/Business
You may wonder, why did I put “Trading/Business”? It is also important that you see Trading as a business entity & not just another avenue to earn a living. Once you see Trading as a business, you’ll subconsciously start ensuring that there are certain procedures & structure Trading. This ensures a sense of professionalism throughout your Trading Journey.
Interpretation
1. Seeing The Markets As They Are
It is important that you see & read the market exactly as it seems. You must not cloud your interpretation process with indicators, analysis from other traders, or even your past negative experiences with a pair. However, using your past experiences through back-testing is highly recommended as that gives you confidence from all the data you have collected over the years.
2. Do Not Overthink
Overthinking is one of the traits you must get rid of if you currently have it. As a professional trader, you must not overcomplicate or overthink things. From general life to trading, overthinking will stick with you once it has become a habit.
