trading psychology

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

Reading Fiction Might Improve Your Trading

Back in 2007, Cal-Tech ran what is turning out to be a revolutionary study on how the brain predicts price moves. The authors found that predicting other people is the key skill behind correctly predicting price moves. In some circles, this skill is called mentalizing but until recently, skill development programs for this ability were […]

“Negative” Feelings May Be A Positive

In a world steeped in the mantra of “remain positive”, what is a trader or portfolio manager to do when frustration mounts? Winning in the game of markets is hard. It really is hard. Sometimes, or maybe even quite a lot of the time, that fact is going to lead to so-called “negative” feelings.

Even winners […]

By |May 12th, 2015|Comfort Food, Emotion Analytics, Emotion research|0 Comments

Should I Trade in Simulation?

In the course of my 20+ years in the trading world, the question of when or how to use ‘sim’ has come up dozens of times. When I traded full-time, I used to wonder. When I added coaching, I got the question all of the time.
This week a client told me of an educator who […]

By |January 25th, 2015|Definitions, Learning Psych Cap, Trading Education|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

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 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 […]

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