Trading Emotions – the Latest Research

The latest research on preventing the behavioral risks of emotion overload once again turns out to be counter-intuitive. Instead of using your logic to change your feelings, it appears that embracing your emotions may be the fastest route to calming or changing them. “Tapping into more emotions improves coping, according to Todd Kashdan, […]

By |August 13th, 2015|Definitions, Emotion research, Uncategorized|0 Comments

Should I Trade in Simulation?

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 […]

By |January 25th, 2015|Definitions, Learning Psych Cap, Trading Education|0 Comments

A “Philosophy” of Making Trading Rules

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 […]

By |April 7th, 2014|Definitions, Risk Decisions, trading psychology|0 Comments

Key Layers of Trading Related Emotions

First of all, neuroscience is teaching us that trying to separate risk decision making from feeling or emotion is at best a waste of time and at worse, a sure way to eventually trade-out (like act out) the feeling/emotion that is present. Second, there is a logical fallacy in the idea of “control your emotions” […]

The Vacuum of Context – the S&P Downgrade

As we get ready to watch markets on the other side of the globe open, it might be helpful to think about how we think. Our brains use both the social and emotional context of a situation to decipher its true meaning. But what happens when something completely new happens?

For all practical purposes, no one […]

By |August 7th, 2011|Definitions, Markets, Risk Decisions|0 Comments

The Real Probabilities of Trading

We all like to talk about knowing the probabilities … and then just sticking to them. Most of us like to harangue other traders for not doing so while finding it not so easy to do ourselves.

It isn’t so easy for a number of reasons –

1. Whether you are conscious of it or not, your […]

By |August 30th, 2010|Definitions, Markets, Risk Decisions|0 Comments

“All I want to be is a day-trader.” … Why do so many people feel that way?

When I first found short-term trading, before the internet and before the term day-trader was invented, I was hooked. I was on my way to a PhD and said “skip that”. So… I have no room to talk when I ask the question with maybe a hint of perjorativeness…. but then again maybe I do.

Back […]

Behavioral and Neuroeconomics

Well the wave has finally hit… it seems everyone on or connected to a Wall Street event is interested in hearing more about behavioral finance. PBS’ Nightly Business Report is doing a year-long special, private wealth managers are calling me to speak almost monthly, the largest “alternative investment” conference in the world called…

Yet underlying much […]

By |February 22nd, 2010|Definitions, Pure Science|0 Comments

What You Need to Know to Trade

There must be 10,000 lists like this… let me add mine – hopefully with many useful twists.

1. You need to know what you are looking for – both to enter the market and to exit.

2. You need to know what the variations on #1 are – and what they are not!

3. You need to know […]

By |January 19th, 2010|Definitions, Learning Psych Cap|0 Comments

Exploring the Nature of Trader Intuition: Research from Cal-Tech

In short, ..."tests show that Theory of Mind (ToM), rather than mathematical, abilities are better predictors of success in forecasting stock markets".

By |January 9th, 2010|Definitions, Pure Science, Risk Decisions|0 Comments