Showing posts sorted by relevance for query how-to-deal-with-uncertainty-of-trading. Sort by date Show all posts
Showing posts sorted by relevance for query how-to-deal-with-uncertainty-of-trading. Sort by date Show all posts

Sunday, December 9, 2018

Info!! Meridian Trading Psychology Posts: 2006 - 2014

Below are early on transcend trading psychology posts from several sites.  For to a greater extent than recent trading psychology posts, delight cash inward one's chips to the pages for 2015, 2016, in addition to 2017.  If y'all are interested inward posts dealing amongst psychological issues impacting trader psychology, delight banking concern agree out that habitation page.  For greater depth of coverage of trading psychology topics, delight banking concern agree out the habitation page for the trading books and the page of curated Forbes posts.  For transcend postings on trading techniques, this page volition hold upwardly helpful.  If y'all don't meet a theme of involvement inward the sources below, endeavor Googling "" in addition to the theme you're interested in.  Usually a few relevant links volition come upwardly up!

While I am non able to offering online coaching for private traders, I tin hold upwardly reached for questions virtually the posts at the higher upwardly e-mail address.  See too my bio in addition to contact information page.  


PRE- 2014 TRADING PSYCHOLOGY POSTS:


Good house to start: Links to a Series of Posts on Core Themes inward  can hold upwardly constitute here.


Earliest posts on trading functioning can hold upwardly constitute here.  

Earliest trading psychology articles can hold upwardly constitute here.

A wealth of pre-2010 posts on trading techniques in addition to trading psychology can hold upwardly constitute here.

Best of trading psychology posts from early on 2010 can hold upwardly constitute here.

Best of trading psychology posts from afterwards 2010 can hold upwardly constitute here.




TOP TRADING PSYCHOLOGY POSTS FROM 2014















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Thursday, February 7, 2019

Info!! Ii Hidden Virtues Of Successful Traders

One of the close interesting aspects of working equally a trading autobus is the mightiness to see, kickoff hand, what contributes to the success of traders.  So oft the factors that Pb to success are non those emphasized inwards mainstream articles in addition to books.  Here are 2 unappreciated virtues I come across amid successful portfolio managers in addition to traders:

1)  The mightiness to tolerate uncertainty - Suppose yous convey whatsoever detail configuration of toll inwards a market; say, trading x% inwards a higher house or below a Y flow moving average.  Then await at what that marketplace seat does on average over the side past times side Y period.  The odds are swell that for whatsoever value of x in addition to Y, the market's directional vogue volition endure swamped past times the variability of toll inside that side past times side Y period.  What that agency is that, on average, the indicate to dissonance ratio for a directional trader is low.  Whatever directional vogue is acquaint is by in addition to large non statistically pregnant in addition to non readily tradeable.  Given such a situation, the modal sentiment of whatsoever trader should endure "I don't know".  Uncertainty is itself a take in and, inwards fact, should endure one's base of operations case.  When a trader cannot tolerate dubiousness in addition to needs to industry conviction, the number inevitably is overtrading the objective chance set.  It is impossible to properly deal chance if yous are intolerant of uncertainty.

2)  The productivity of fourth dimension spent away from trading - I consistently honor that successful traders pass to a greater extent than fourth dimension identifying proficient trading opportunities than genuinely putting on in addition to managing trades.  Csikszentmihalyi conducted a fascinating report alongside artists inwards which they were shown 27 objects in addition to asked to accommodate a pocket-sized grouping of them into a composition in addition to generate a sketch.  They had 1 sixty minutes for the task.  The artists barbarous into 2 categories.  One grouping speedily identified the objects for the composition in addition to spent the amend business office of the sixty minutes refining their sketches.  The 2d grouping spent close the sixty minutes figuring out what to draw.  They selected objects, started sketches, changed the objects, sketched roughly more, rearranged objects, etc.  By the fourth dimension they establish the composition they liked, they spent alone a few minutes on the concluding sketch.  The drawings of the 2d grouping were rated equally significantly to a greater extent than creative past times a grouping of fine art critics than those of the kickoff grouping and, subsequently a v twelvemonth period, the 2d grouping demonstrated significantly greater success equally artists.  The less successful artists spent close their fourth dimension sketching.  The successful artists spent close their fourth dimension finding compositions worthy of sketching.  It's a swell analogy for trading.

Good things plough over off when these 2 strengths come upward together.  The mightiness to convey dubiousness frees the take away heed to maximize fourth dimension away from trading in addition to creatively generate audio merchandise ideas.  For the successful trader, dubiousness provides the chance to larn away from screens in addition to await at markets through novel lenses.  Overtrading exists when the demand to merchandise exceeds the demand to understand.

Further Reading:  How to Deal With the Uncertainty of Trading
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Thursday, March 5, 2020

Info!! Neuroeconomics: How Brains Behave Upon Our Gains

* How Neuroscience Interfaces With Economics - Excellent overview of the champaign of neuroeconomics.

* Wired for Irrationality? - This Business Week summary examines why logic takes a backseat with much conclusion making.

* How Brains Deal With Uncertainty - This research finds that encephalon mechanisms for dealing with dubiety that develops over curt fourth dimension periods (as inwards trading) are unlike from those that bargain with dubiety that depends upon by learned associations. Might y'all hold out able to differentiate successful from unsuccessful short-term traders from their patterns of encephalon activation spell making decisions?

* Intriguing Review of Cognitive Neuroscience Research
- This article suggests that a multifariousness of disorders have, at their root, a dysfunction inwards how neural activity inwards unlike areas is coordinated: "The impairments of neural synchrony observed inwards schizophrenia, autism, in addition to AD [Alzheimer's Disease] are consistent with electrical flow theories that emphasize a disconnection syndrome every bit the underlying pathophysiological mechanism. According to these theories, cognitive dysfunctions too every bit the overt symptoms of these disorders arise from a dysfunction inwards the coordination of distributed neural activity betwixt in addition to inside functionally specialized regions of the cerebral cortex." Might it hold out the illustration that roughly individuals create got exceptionally good developed neural coordination, accounting for distinctive cognitive performance?

* Risk Seeking? - In this study, monkeys are a alternative betwixt 2 alternatives: both Pb to the same hateful reward, only 1 alternative has higher variability than the other. Like roughly traders, monkeys exhibit a preference for the risky (high variation) choices, in addition to an expanse of their brains responsible for the processing of rewards is implicated.

* Prepare for the Worst? - This study finds that, when people are led to human face visual stimuli that are pleasant or unpleasant, they activate the parts of the encephalon appropriate for each. When they are led to human face unknown stimuli, however, they activate the areas appropriate for unpleasant reactions. Such a "pessimistic bias" brand may sense, every bit the authors note: "Since nosotros practise non know what hereafter holds for us, nosotros laid upward for expected emotional events inwards guild to bargain with a pleasant or threatening environment. From an evolutionary perspective, it makes feel to hold out especially prepared for the worst-case scenario." Might nosotros come across a unlike designing of activation with occupation gamblers in addition to addictive traders?
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