Risk Management

The Offense and Defense of Trading

Trading is hard. This far-flung, never-ending electronic poker game serves up a mental challenge unlike any other. Anything can happen at any time. It looks like a numbers game but it’s really a people game. The data are numbers but the information is in the relationships between, and the implications of, those numbers.

Ambiguity reigns.

Successful traders […]

Solve that Cleveland Sports Curse

UPDATE June 20, 2016: I am SO glad the Cavs won! Thrilled. Elated. Vindicated. Ecstatic. Relieved. Joyous. Shocked… not necessarily in that order. Maybe someday I will get to interview LeBron about the cycle of emotions he experienced and used to create this incredible historic victory!

UPDATE June 17, 2016: This time I stayed until the […]

Recover from a Trading Mistake through Writing

A few weeks ago, I attended the annual meeting of The Social and Affective Neuroscience Society (SANS) – a seemingly unlikely place to figure out how to resolve a trading mistake! Those who follow me know I am not only a closet academic but that many of the advanced trading psychology ideas I teach originate with […]

Gain Market Intuition with NinjaTrader’s Market Replay

Back in the ‘90s in Chicago when I just beginning to trade my mentor would say: “I’ve seen this movie before.” Mistaking the market for a math problem, I really didn’t get what he meant – until indeed I too felt a click of recognition as I watched price action unfold. Experience delivers an ability […]

Really Simple Ways to Improve Trading Results

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 […]

Empathy and Intuition, Two Key Trading Thinking Styles

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 […]

Neuroscience & The Risk Manager including White Paper The Art of Algorithmic War

Coates, Shull, other experts weigh in on risk professionals’ attention to their discipline

Thursday, May 02, 2013,
Risk Professional Magazine (published by the Global Association of Risk Professionals – GARP)
By Katherine Heires
Over the past 20 years, advances in brain imaging technology and other methods of analyzing neural activity have yielded important insights into […]

The Secret Ingredient to Success in The NYTimes

Last Sunday, the most successful trader I knew from the Chicago Options pits texted me this – “Self-examination is the key to noodle making and other accomplishments.”

Now you should know two things – 1) this guy NEVER texts – we have been friends for going on 20 years and this is the very first […]

Risk & Uncertainty: Better Judgment

It’s easy to confuse the two but as Frank Knight wrote almost a century ago, they are two different things.

Little did he know, that in addition to his logic, the brain reacts to each differently. With risk, or KNOWN probabilities, the brain can handle it in a more or less linear way. With uncertainty, which […]

CNBC Squawk Box on Market Mind Games

In case you missed it, here’s my segment on CNBC Squawk Box this morning. Had a ton of fun with Joe and Andrew. More later.

FRIDAY the 10th … and yes, this Joe, this approach DOES work with putting too! In fact, it may work even better with putting because there are actually fewer uncertainties than […]

By |August 9th, 2012|Golf, Perception, ReThinking, Risk Management|0 Comments