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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 […]

Why Change Your Thinking about Your Emotions?

John Netto, a very successful trader, is currently finishing his book The Global Macro Edge wherein he takes on what he sees as the myths of Wall St. One of the chapters will be titled “Emotions are your Biggest Ally”. How, when it seems emotions are usually our biggest enemy, could John think such a […]

By |November 21st, 2015|Emotion Analytics, Emotion research, Learning Psych Cap, Uncategorized|0 Comments

The Art of War and Monday Morning Sell-Offs

For many traders, me included, waking up to a big sell-off is very exciting. The feeling that there is money to be made reverberates in my gut. In fact, that feeling borders on fear of missing out. Fear of missing a bounce, fear of missing another leg down and sadly, a tinge of regret for […]

By |August 24th, 2015|Uncategorized|0 Comments

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

The 3 “Eyes” of Trading Using Your Feelings

It’s unfortunately still the 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 rational WITHOUT […]

By |October 23rd, 2014|Emotion Analytics, Learning Psych Cap, Perception, Uncategorized|0 Comments

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 […]

Brain Turns Statistics into Emotion!

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 […]

The Social-Emotional Context

…everything we think, feel and do is related to this. ReThinking Thinking is about analyzing these evolving contexts – and understanding that thinking is hardly just about “smarts” – that is where we go wrong. …. Wrong in risk management, wrong in analyses and definitely wrong in perceptions.

By |May 24th, 2010|Uncategorized|0 Comments

Greed is Good – Weekend WSJ

Most likely I am preaching to the choir but I sure wish President Obama understood this. It is all too easy to blame “greedy Wall St.” What about the homebuyers, mortgage officers and most of all the rating agencies that really got us into this mess? And furthermore, how does any self-respecting economist expect to […]

By |February 7th, 2009|Uncategorized|6 Comments

The Beginning of Discretionary Trading

Today a very sophisticated systematic (quantitative) trader said “Discretionary trading wasn’t around before the 1980’s.” I am still stunned. Maybe he is 22 years old or something…. but can anyone explain this to me? He might have met “money managed in a discretionary manner” but still…….

By |February 3rd, 2009|Uncategorized|2 Comments