Somewhere down the road, you just might find you agree with more than you expected. Or worse, learned a thing or two about making better decisions in the face of UOUP (rhymes with soup) - uncertain outcomes uncertain probabilities.
All this suggests that emotions are key information providers when deciding under uncertainty. They make us tuned to our environment. Actually, in some contexts of fast and intuitive decision-making in the face of unstable (high vol) conditions, one expects that the stronger the emotional uncertainty signals of the day-trader, the higher the performance.
I mean we also hear "believe in yourself" but where do these advisories leave you when a trading idea is going wrong? How do you handle the teeter totter that holds belief and conviction on one side and price and risk management on the other? What fulcrum can you depend on?
A year ago tonight I was merrily watching my Cleveland Browns actually win while on a Jet Blue flight to the CME's Inaugural Global Financial Leadership conference when my first cell beep on landing was Bill Long calling to say LEH was BK and ML was BAC. 365 days after…
Figure out how to differentiate implicit learning from impulse.
Today Set the alarm for 6:40 am, but ended up going to bed pretty late. 6:40 am alarm rings, still super tired, so decide to sleep in till 7:30 and then see if I want to trade 7:28 wake up without alarm, feeling good. 7:45 ish, notice the market has…
Today's neuroscience proves that the residual feelings resulting form one event can completely color your beliefs about the next event. It also proves you can't act - or even make a decision - without emotional inputs. Therefore, managing those inputs - in the way that works - is a singularly profitable (and winning) endeavor.
Sooner or later, it is bound to happen. The markets conspire to converge in a way that fits your optimal trading strategy. You see it, you know it and then at the same moment, the phone rings, or the boss yells or the ..... Something happens that interrupts your ability…
The thing is - all of this requires both a change in perspective and more importantly, putting the same effort into understanding your internal signals as you put into the ones the market is providing!
The real clue is that the numbers (and the bars and lines they draw) are only a clue - not the real answer.
