Info!! Inventiveness Together With Innovation: The Achilles Heel Of Trading Together With Trading Psychology

I've spent a chunk of fourth dimension this morn reading what's out in that location inwards social media regarding trading, trading psychology, as well as trading methods.  Influenza A virus subtype H5N1 lot of sites, a lot of tweets.  Influenza A virus subtype H5N1 lot of what I read boils downward to, "Once you've constitute your edge, remain consistent inwards your mental/emotional acre as well as inwards your trading practices."

Why is it that so many professional person coin managers (not to squall private traders) neglect to run across surgical physical care for expectations?

I would debate that the argue is that they accept followed their ain advice.  They constitute their edge, they stayed consistent with it, as well as they accept been left behind equally markets accept changed.  In other words, traders accept failed because in that location is much, much to a greater extent than to trading psychology than maintaining emotional command as well as next routines.

Successful traders as well as trading firms do as well as innovate--just similar whatever successful business.  They run inwards a dynamic environs as well as they honour ways to suit as well as exploit *new* sources of border equally the marketplace evolves.  The Achilles heel of trading psychology is that it emphasizes the physical care for of trading as well as non the physical care for of generating fresh ideas worth trading.

Creativity as well as conception start yesteryear looking at novel information, questioning one-time assumptions, as well as using the novel information to explore alternate assumptions. 

Here's an example from my recent trading:  What if backtesting a historical laid upwards of information is *not* the best agency of determining the odds of a marketplace position moving from indicate Influenza A virus subtype H5N1 to indicate B?  What if a meliorate predictor is the recent direct of marketplace position participants at points Influenza A virus subtype H5N1 as well as B?  

The novel information consists of rattling short-term readings of the upticks as well as downticks occurring alongside all exchange-listed stocks throughout the day.  (Available via e-Signal).  Instead of arraying the uptick/downtick information yesteryear time, nosotros array it yesteryear cost level:  nosotros aspect at each cost as well as how much internet upticking/downticking has occurred at that price.  (Note that this is similar to arraying mass yesteryear cost inwards a Market Profile).  

What nosotros honour is that in that location are surely cost levels as well as ranges at which buying (upticking) as well as selling (downticking) has been dominant.  Perhaps these cost levels/ranges stand upwards for where the inventory lies inwards markets.  Perhaps the odds of moving through a given price/range is a business office of that inventory.

Maybe yes, possibly no; I accept an opened upwards mind.  What I do know is that this is a unlike agency of looking at markets as well as modeling forrad returns.  I don't know if whatever given conception volition yield an edge, but I am convinced that the failure to nowadays volition permit whatever possible pre-existing border to erode.

Looking at novel information.  Questioning one-time assumptions.  Asking novel questions.  Viewing markets from unlike angles.  These prevarication at the see of what I telephone phone Trading Psychology 2.0.  The challenge isn't merely to succeed, but to sustain success.

Further Reading:  Creativity is the New Discipline
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