Originally Posted by
moka
Good question Rawz. And very relevant to share trading.
This is from the book The Disciplined Trader by Mark Douglas.
“Associations seem to be a natural characteristic of the way in which we think. That is, our brains are wired in such a way as to link similar forms of environmental information together automatically. We do this basically in two ways. First there is a natural propensity to label people and objects based on some prominent characteristic and then categorize them into associative groups. After we categorize the groups by sex, hair, colour, skin colour profession, economic status, educational background, and so on, we then associate whatever experience we have about the group with everyone and everything that has those same characteristics. For example, if we have a painful experience with a person who has a skin colour different from that of our own we will automatically associate every one with that skin colour with the qualities of that one experience.
The second way we associate is by linking extraneous sensory information with some event. We will automatically associate what we are smelling, tasting, hearing or seeing along with the quality of energy of the primary experience. For example, a child getting spanked will associate all the other environmental information that his senses are inadvertently picking up with the pain he is feeling from the spanking. So, if there was some song playing on the radio or a distinctive odour in the air at the same time he was experiencing pain, he will associate the song or the odour with the pain.
In future when he hears that song or smells that particular odour, they will automatically cause him to experience the negative energy connected with the spanking. Even years later if he hears that song it will carry him back to that time, changing his experience from happiness to anger, sadness, or guilt.”