What is neuro-linguistic programming?
Neuro-linguistic Programming, or NLP as it’s more commonly known, is a psychological approach to improve mental performance. Practitioners say that an increase in physical and spiritual performance follows after you begin NLP training.
Basically–and probably a little too superficially put–NLP examines your self-talk and then offers ways to re-program this inner talk that is more aligned with achievement.
The question is: can NLP be used to improve your trading and investing performance?
According to Charles Faulkner of New Market Wizards, NLP can help traders and investors.
When we change those programs, just as when we change or upgrade software, we immediately get positive changes in our performance. We get immediate improvements in how we think, feel, act and live.
Turtle Trader explains that NLP fits in with the overall philosophy that trading skills are teachable.
If you’ll recall, Turtle Trading originated from a bet made between two legendary traders (Rich Dennis and William Eckhardt) that trading was not innate skill, but could be learned.
If it can be learned, it has to have a mental algorithm–one that can be tweaked and optimized.
So, the theory would agree with the thesis that most serious trading errors are not ones of intelligence, but are behavioral, NLP could offer the necessary attitude adjustments.
Is NLP the right attitude adjustment for traders? That’s another question.
You can explore more about the cognitive improvement method in the following books and courses:
Perhaps the most comprehensive treatise on the use of NLP specifically for trading is Nlp for Traders and Investors, by Terry Carroll.
NLP: The New Technology of Achievement by NLP Comprehensive, Steve Andreas, and Charles Faulkner
NLP For Beginners: Only The Essentials by Shlomo Vaknin
Even I’ll admit that the thing that bugs me a little about NLP is that it appears to be a little “cultish.” Like any belief system, a wide array of scammers and weirdos appear to trail and inhabit the fringes. So, be careful where you get advice.
Please let us know if you used NLP. What’s your opinion on NLP? Good, bad, indifferent?