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 […]

Jamie, Psych Risk Management & Living to Trade Another Day

This is a true story.

3 years ago today (I have this weird memory for dates), I spotted Jamie Dimon and Bill Daley sitting outside Gibsons in Chicago. I just happened to have come from a lunch with Patricia Crisafulli who had written the House of Dimon and I had her book with his picture on […]

Recognize this?

“I have blown out my account twice because I write down the rules, but then a few hours go buy, I get caught up in the in the emotions and the volatility, and then I notice I never followed my rules, wtf is wrong with me? am I just too obsessive and unteachable? should I […]

By |March 3rd, 2009|Markets|0 Comments

Do You Know where your Strategies Are?

It seems like it would go without saying but it doesn’t. A key to making money as a speculator is knowing what combination of market factors you are looking for – and then waiting for the elements to converge. This starts with knowing what your factors are…. can you describe them? In enough detail so […]

By |February 24th, 2009|Markets|0 Comments

A thousand points?

a 1000 points???? are they kidding…….

Richard Bookstabber in Demons of our Design had it right when he described how interconnected all trading and all markets are…. the only part he didn’t really cover in detail is this:

it is NOT fear and greed – it is fear and fear2. Fear2 is the fear of missing out….and […]

By |October 13th, 2008|Comfort Food, Markets|0 Comments

FEAR in capital letters

At this point, it goes without saying – the entire world is gripped in fear. .. and for good reason. Forgive me for disagreeing with FDR but it isn’t that “the only thing we have to fear is fear itself” but “the only thing we have to fear is acting on our fear AT THE […]

By |October 8th, 2008|Emotions & Decisions, Markets, Uncategorized|2 Comments

Auction Market Theory

We still believe this is the best way to read price action. In fact, we would go so far as to say that it is the best way to integrate the ideas out of behavioral finance into a way to actually trade the markets. Put simply, being able to easily see the areas of congestion […]

By |October 3rd, 2008|Markets|0 Comments

Emotions for the Markets

Decision-research basically proves that we need our emotions to make a good risk-reward decision.

By |September 10th, 2008|Emotions & Decisions|0 Comments

What is Psychological Capital?

We've all heard of human capital and the importance of the human element. The concept of psychological capital takes that discussion to another level - a level where we can begin to further understand, analyze and actually build on our most significant asset.

By |September 7th, 2008|Definitions|0 Comments