Friday, February 8, 2019

Info!! A Creative Cure For Overtrading

The public would hold upwardly a far less beautiful identify without the artistry of creativity.  If there's 1 human relationship I've seen over the years equally a psychologist, it's that fresh viewing leads to fresh doing:  When nosotros run into life's challenges through novel lenses, it opens the doors to novel actions, novel solutions.  Sticking amongst 1 means of thought is a slap-up means to rest stuck inwards whatsoever activity pattern.

This morning time I was upwardly at my park 4 AM time, aided past times the hungry cats that serve equally my daily alert bell.  Seemingly out of nowhere I posed a inquiry to myself:  Suppose nosotros were to measure, every few minutes during the day, how many stocks inwards the wide marketplace position were trading inwards a higher identify together with below their day's volume-weighted average price.  And suppose nosotros were to give-up the ghost on a running, cumulative total of that number.  Would that practice an effective diffusion index assessing marketplace position forcefulness together with weakness?

So, later feeding the cats, I went dorsum inwards time, pulled the data, together with assembled the spreadsheets.  What I saw looked promising equally a starting fourth dimension approximation.  I straight off accept my homework for the twenty-four hr menstruum to refine this mensurate together with pose it to or then challenging tests.

If history prevails, the novel mensurate volition either overlap former ones--or exactly overlap contemporaneous toll movement--so that it adds piffling fresh information to the analytical arsenal.  As I've mentioned earlier, however, my strategy is to generate at to the lowest degree 1 such fresh thought per week.  If x pct of those evidence unique together with useful, I volition accept added meaningfully to my agreement of markets over the course of report of the year.  The compounding upshot over several years is peculiarly significant.

But in that location is another, deeper practice goodness to this work:  When y'all are generating novel ideas together with stimulating yourself amongst fresh perspectives, in that location is no involve to seek stimulation inwards (over)trading.  If your take away heed craves activity, y'all volition give-up the ghost on yourself active--even if that activity is non constructive.  The respond to overtrading is non to dependent yourself to hold upwardly less active, but rather to channel activity inwards creative together with constructive directions.

Nietzsche observed, "Under peaceful conditions, a warlike human being sets upon himself."  When markets are quiet, that is when nosotros tin operate on ourselves.  That is when nosotros tin generate together with exam ideas.  Much of long-term success comes, non exactly from trading, but from what we're doing when in that location are no audio trades to place.

Further Reading:
Cultivating Emotional Creativity
Conflict together with Creativity inwards Trading Performance
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