Skip to main content

THE CONTEXT IS THE CUE

 The cues that trigger a habit can start out very specific, but over time your habits become associated not with a single trigger but with the entire context surrounding the behavior.

We mentally assign our habits to the locations in which they occur: the home, the office, the gym. Each location develops a connection to certain habits and routines. You establish a particular relationship with the objects on your desk, the items on your kitchen counter, the things in your bedroom.

Our behavior is not defined by the objects in the environment but by our relationship to them. In fact, this is a useful way to think about the influence of the environment on your behavior. Stop thinking about your environment as filled with objects. Start thinking about it as filled with relationships. Think in terms of how you interact with the spaces around you. For one person, her couch is the place where she reads for an hour each night. For someone else, the couch is where he watches television and eats a bowl of ice cream after work. Different people can have different memories—and thus different habits—associated with the same place.

The power of context also reveals an important strategy: habits can be easier to change in a new environment. It helps to escape the subtle triggers and cues that nudge you toward your current habits. Go to a new place—a different coffee shop, a bench in the park, a corner of your room you seldom use—and create a new routine there.

It is easier to associate a new habit with a new context than to build a new habit in the face of competing cues. It can be difficult to go to bed early if you watch television in your bedroom each night. It can be hard to study in the living room without getting distracted if that’s where you always play video games. But when you step outside your normal environment, you leave your behavioral biases behind. You aren’t battling old environmental cues, which allows new habits to form without interruption. 

Want to think more creatively? Move to a bigger room, a rooftop patio, or a building with expansive architecture. Take a break from the space where you do your daily work, which is also linked to your current thought patterns. 

Trying to eat healthier? It is likely that you shop on autopilot at your regular supermarket. Try a new grocery store. You may find it easier to avoid unhealthy food when your brain doesn’t automatically know where it is located in the store. 

When you can’t manage to get to an entirely new environment, redefine or rearrange your current one. Create a separate space for work, study, exercise, entertainment, and cooking. The mantra I find useful is “One space, one use.” 

Whenever possible, avoid mixing the context of one habit with another. When you start mixing contexts, you’ll start mixing habits— and the easier ones will usually win out. This is one reason why the versatility of modern technology is both a strength and a weakness. You can use your phone for all sorts of tasks, which makes it a powerful device. But when you can use your phone to do nearly anything, it becomes hard to associate it with one task. You want to be productive, but you’re also conditioned to browse social media, check email, and play video games whenever you open your phone. It’s a mishmash of cues.

If your space is limited, divide your room into activity zones: a chair for reading, a desk for writing, a table for eating. You can do the same with your digital spaces. I know a writer who uses his computer only for writing, his tablet only for reading, and his phone only for social media and texting. Every habit should have a home.

Focus comes automatically when you are sitting at your work desk. Relaxation is easier when you are in a space designed for that purpose. Sleep comes quickly when it is the only thing that happens in your bedroom. If you want behaviors that are stable and predictable, you need an environment that is stable and predictable.

A stable environment where everything has a place and a purpose is an environment where habits can easily form. 

Chapter Summary

Small changes in context can lead to large changes in behavior over time. 

Every habit is initiated by a cue. 

We are more likely to notice cues that stand out.

Make the cues of good habits obvious in your environment. 

Gradually, your habits become associated not with a single trigger but with the entire context surrounding the behavior. 

The context becomes the cue. It is easier to build new habits in a new environment because you are not fighting against old cues.

Comments

Popular posts from this blog

Maximizing Your Profits with Scoring

SETTING YOUR MAXIMUM INTRADAY TRADING LOSS First things first: set a max intraday trading loss. There will be days when you just do not have it. Why do you think coaches pull their players when they are not playing well? They are more harmful on the field than off. When you are underperforming, you are hurting your team and your trading business. You need a system to yank yourself over to the bench. A stop loss is your answer. TRADING BASED UPON THE TIME OF DAY A good trader makes note of what time of day it is, when he trades most profitably, and adjusts his trading to fit such times. Your numbers at the end of the month will not reflect your true trading potential. Make the most trades with the most size during the trading periods that statistically are most profitable for you. Money saved during your weaker trading periods is money earned. Consistency The fact is that most trades you make will start working for you right away. But the new traders also hold stocks that are trading ag...

CAN A FIRM ALWAYS SPOT THE NEXT GREAT TRADER?

 No. But a prop firm can tell who has a poor chance to become a CPT. To be good at anything will take everything you have. Not having developed the skills to work hard is a turn-off. Trading is a skill learned by doing, not just by reading a lot, theorizing, or the faux art of “paper trading.” THE PROS AND CONS OF RECRUITING EXPERIENCED TRADERS Loyalty is a good thing to a point, but it cannot trump logistics and reality. losing money should really bother you. If I am negative three days in a row, I spend a long evening on my couch with a bottle of red wine and comfort food. As traders, we can all recite the memorable line from Wall Street: “A man looks in the abyss, there is nothing staring back at him. At that moment he discovers his character. That keeps the man out of the abyss.”  Traders don’t talk about how they want to trade, what they want to read about trading, or how they wish they could talk about trading. Traders trade, read about trading, and talk about trading.

Reading the Tape

 Dr. Steenbarger, aka the godfather of modern trading psychology, wrote: “My experience is that an understanding of (and ability to read) order flow is one important factor that separates the older, successful generation of day traders from the newbies who only know simple chart patterns and indicator readings.” continue working on the skill of reading the tape and to sell the stock on the offer when the tape showed weakness. “Reading the tape must be learned through personal experience and long observation.” keep in mind that nothing can top experience. Don’t give up. It is not always this easy to Read the Tape. But there are plays where it really is simple. And reading the tape will offer pattern recognition plays that you can exploit. Overcoming a Confirmation Bias We all fight confirmation bias. But it will harm our performance if we do not overcome it. Let the tape talk to you. And use online vehicles like StockTwits and your peers sitting next to you to gain second ...