Fractal psychology

Trading Emotions Echo the Past

A trader I coach predicted this as the best positioning for Brexit : Short the pound, short the S&Ps, long gold and short oil. This is John B. – a guy with 20+ years of very successful experience and a recent history of working on separating instinct from impulse through coaching.

We speak three times a […]

A New Trading Psyche for 2014

What can a trader do (really do) to optimize their mind for trading? Is it “plan the trade, trade the plan”? Is it “control their emotions”? Is it something else?

Here’s what works.

Realize that like professional sports, trading is a performance discipline.
#1 means that the interaction of body, mind and “spirit” IS the place to […]

Understand and Eradicate the Mysterious Riddles in Your Trading

What phenomenon does this partial quote describe?
“…people all of whose human relationships have the same
outcome: such as the benefactor who is abandoned in anger
after a time by each of his protégés, however much they may
otherwise differ from one another, …or the man whose
friendships all end in betrayal by his friend; … or, again, the lover […]

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 Very First (and I what I thought would be the last) Words I Wrote on Trading Psychology

Shull’s first article “What Would Freud Say? Stroll Down Freud’s Mental Path to Profits”, December 2004.

When I wrote this I had NO idea whatsoever that I would ever publicly write or say ANOTHER word on the psychology of trading. It was just an idea I had based on re-writing my Master’s Thesis […]

ReThinking Trading Psychology 101 (version 2)

Originally posted on Business Insider, April 17.

Conventional wisdom in trading psychology used to depend on two primary tenets – discipline and ‘control your emotions’. But that was before neuroscience started putting traders, poker players and other risk-gamers into brain scanners. Now that we know that all decisions depend on the presence of an emotion, most […]

Sustainable Investing & Trading Success via Psychological Strategies

In response to the post and discussion here by @ppearlman, @andrewunknown asks:

Phil’s last line: “So, even awareness is overrated. Its a start but really its about your choices. Its where the training begins, not ends.” Denise: “What is standing in between the “knowing” and the “doing”?”

These quotes rather concisely introduce two explanatory problems:

1) Everyone agrees […]

By |March 11th, 2013|Fractal psychology, Markets, Pure Science|0 Comments

The Human Trading Condition

Just a few moments ago, I hung up the phone after speaking with a client who heads a trading desk at a bank everyone in the world has heard of. It would be easy to think – “well, that guy has it made”. (Government’s intention to break-up banks and stop prop-trading notwithstanding). Yet, he wants […]

Huge Market Moves

There it is – the market up 200+ points and you didn’t make a dime. Man is that maddening. You knew (at least kind of) that it was coming but you didn’t take a position. You saw a small pullback but hesitated.

Now you are aggravated – mad at yourself and feeling like you missed something. […]

By |January 2nd, 2013|Fractal psychology, Markets|0 Comments

Griffin of Citadel on Trading Judgment

Thanks to one of our favorite clients, Rob from Australia, this quote made it’s way into my inbox this morning.

“Nothing is constant, nothing is the way it has always been. So what I find is that people who are really good at this have great intuition, have great instinct. Their gut actually tells them something. […]

By |September 21st, 2012|Emotion Analytics, Fractal psychology, Learning Psych Cap, Markets|0 Comments