trader psychology

Fear, Affect, Emotion & Psychological Science

Forms of fear permeate the process of trading. Every market decision bets on a fundamentally unknowable future and as such, trading implicitly includes a factor derived from the spectrum of panic to overconfidence. Moment to moment, a trader’s beliefs can ameliorate debilitating or palpable fear but as most honest traders know, price action “mis-behavior” can […]

By |October 29th, 2013|Emotion Analytics, Pure Science, Risk Decisions|0 Comments

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 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 […]

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

A Fallacy in “plan the trade, trade the plan.”

I followed the dictum for years – or at least I followed it as well as I could. “Plan the trade, trade the plan”. But like everyone else I had trouble with the second part and often chastised myself. That was until neuroscience proved that within uncertainty – like when our brains see markets – […]

By |December 3rd, 2012|Learning Psych Cap, Pure Science, Risk Decisions, Trading Education|0 Comments

Trading Does NOT Have to be THAT Hard

Traditionally brokers and industry lore report that only 5% of independent, single traders make it. I don’t know if that stat is true or not. Recently one of the currency brokers said that 25% of their accounts were profitable.

Here is what I do know – in a nutshell. All of our traditional ideas about […]

By |April 17th, 2012|Learning Psych Cap, Risk Decisions, Trading Education|0 Comments

Revolutionary Trading Psychology

Everyone thinks the market is a game of numbers. We use complex models, umpteen oscillators or retracement calculations and even a fundamental analysis of supply and demand - all based in numbers and about numbers. But in reality, the numbers of the market are but an illusion.

By |May 11th, 2009|Emotion Analytics, Learning Psych Cap|4 Comments

Consistently Good Decisions and Losers

The simple (but not easy answer) is all you need to do is understand the feelings - preferably both macro level (what you expect of yourself and echoes from your past) and micro or in the moment reactions to the result of a trade or price movement.

By |May 2nd, 2009|Markets|2 Comments

Love and Trading By Trader K

“I return from holiday rested and relaxed, to quote Ben Lichtenstein, “I have tasted the sweetest Mediterranean tomatoes brought to me by dusky maidens and washed down with oaky red wine in the shade of orange trees, I have felt real warmth from the sun on my skin again.” Pulling up a chart once more, […]

By |April 17th, 2009|“Locals”, Comfort Food, Emotions & Decisions|2 Comments