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…
Did you know that no one knows for sure how many "basic" (irreducible) emotions there are? Many scientists have long believed in six, a new study indicates four and a growing body of work by the teams emerging from Lisa Feldman Barrett's labs makes a very credible case for only…
Price action in the markets is "the tell" - as they used to say. (It seems that is one of those words that has come and gone). But the problem is this said 'tell', tells you different things - it can be interpreted many ways. It is what is known…
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…
Dear Denise, I hope you are well and that your book is coming along nicely. I haven't written in awhile, but I’ve been having quite a time with the Access course. When I began, I made steady progress through the first four or five chapters, and my trading was improving…
I woke up this morning, still thinking about ambiguity and my natural aversion to…. Well, mornings. After a cup of Joe and a slice of shingle with a shimmy and a shake, I set myself down the ponder: Ambiguity Coveted by politicians and poets… Distained by science and law. “political…
the peak n e a r i n g the snowy summit the comforts of the slow and steady climb slip away the air has changed gazing off the windy peak inside churns - excitement erupts voices clamoring to be heard Maslow entices me to take it to a higher…
To the melody of the Jungle Book's Bare Necessities, here's a little song about ambiguity aversion. Best sung with Louis Armstrong playing the original in the background! http://www.youtube.com/watch?v=MbUv_Tnnl2g Embrace the ambiguities The simple ambiguities Don’t chase every tick in every move Just face the unpredictability The financial markets’ recipe For…
Figure out how to differentiate implicit learning from impulse.
Reading your work, applying it, monitoring myself, writing down my feelings, is really paying off. I am trading less, and making more money. This week and last week have been incredible.
