In a culture where it seems like hard work will be an edge, many traders mistake the type of work that will indeed create the best results. Trading is not only an intellectual exercise but a physical and emotional one as well. It follows then that an edge or at a minimum, the approximation of […]
Do you realize that almost no matter where you exit a trade, you are going to feel bad? If the trade is a winner, you wonder if you could have gotten more out of it or why you gave back part of what you had. It’s like a winner is ironically a no-win situation. On […]
In the course of my 20+ years in the trading world, the question of when or how to use ‘sim’ has come up dozens of times. When I traded full-time, I used to wonder. When I added coaching, I got the question all of the time.
This week a client told me of an educator who […]
It unfortunately remains the predominant and conventional wisdom that the best trading occurs from so-called purely rational (read: statistical) and non-emotional analysis. Alas, it’s just not true. In fact, it isn’t even possible for a human being to make a risk-decision devoid of feelings and the most-forward thinking research says it isn’t possible to be […]
Two separate studies interviewing close to 200 successful portfolio managers and traders confirm what Jason Voss and Ravhee Mehta have reported in their books The Intuitive Investor and The Emotionally Intelligent Investor. Being able to read the feelings of other market participants, a form of empathy, and being able to parse one’s one feelings for […]
In technical terms, the researchers call this projected emotion, “anticipatory affect”. In simple terms, the results of this meta-analysis of the brain’s reaction to probabilities in risk goes like this:
1. A trader or PM takes in information about the expected mean, variance or skewness of a trade.
2. The PM or trader’s brain responds with an […]
As we learn more about the importance of emotional information in trading decisions, it's challenging to switch to looking at feelings and emotions as data. It's doubly hard because there is so much misinformation still floating around! To that end, I was happy to see Psyblog publish
A coaching client in Hong Kong recently wrote this in response to a homework assignment. It is so good, in my opinion, that I want to make it available. Let us know what you think?
You asked me what would be the smallest number of rules I would need to trade well. I dearly wanted […]
Earlier this week, one of my clients with the title “Head of Equity Trading” wrote exactly this sentence copied and pasted from his email: “i had another one of those traading days where i let my loss just go to its fullest, and had a really bad day.”
SO… how does a trader of that level […]
Fast Company recently wrote that EI or emotional intelligence is beginning to be considered along SAT scores in college admittance – at Yale no less! Likewise, the New York Times reported on how emotional awareness tactics are helping discouraged job seekers find work.
What’s up with this? Why is emotion – that feared and denigrated element […]