Sunday, April 22, 2007

Trading Psychology and Stock Market Psychology Resources for Traders

I received an interesting phone call a little while back. Someone from a major trading firm contacted me regarding this blog and my personal site. His question did not begin with the phrase "Why the hell?", but the tone of his question certainly implied it. He simply asked why I would possibly "give away" so much content on the sites.

The question reveals a lack of understanding of the academic culture. Say what you will about the ivory tower--and there's plenty to find fault with--but the fact remains that it is an incredible generator of research and knowledge. Why do researchers at my medical school so freely share their data? They realize that advances in medicine are only possible when ideas build on ideas. If you're trying to generate and refine understandings, nothing beats open source.

Whatever I have shared on the sites has more than returned to me through the resulting interactions with professional traders and firms. You would be surprised how open many of the best traders are when they understand that they will receive openness and privacy in return.

The best traders don't owe their edge to this or that idea. Their edge comes from their ongoing ability to cultivate ideas. When you're competent at cultivating ideas, you don't have to hoard the ones you've developed to that point.

The best medical researchers are the ones with the best world-wide research networks. They give away the most and receive the most in return.

I find that giving love in the same way works best in raising a family. Not because you're altruistic, but because giving the best within you inspires others to do the same.

I've updated my articles page of trading psychology and market psychology resources for traders. You'll find links to more than 3 years worth of articles, as well as links to hundreds of other blog posts.

I've also been asked how I manage to write so much and have so many ideas. Maybe it's because others, finding the best within them, have been equally willing to educate and enrich me. My deepest thanks to readers and traders who have also chosen to be contributors.



AnaTrader said...


All the best information and advice that a memtor or coach could give would only work if the trader is prepared to take full responsibility for himself/herself.

Hence, the fear of sharing useful information freely to pose a threat to the givers, is unfounded.

Ultimately, the trader has to work hard to search for excellence.

Hsieh hsieh ni, Brett.

aspTrader said...

Hi Brett,

Brett Steenbarger, Ph.D. said...

Hi AnaTrader,

I think you're right. Most methods require real work to apply them and integrate them into one's own trading style. Many traders, unfortunately, don't put out that effort. Thanks for the comment--


Brett Steenbarger, Ph.D. said...

Hi aspTrader,

Thanks so much for the link. I greatly appreciate your interest in hosting a discussion of the Enhancing Trader Performance book. Please let me know if I can contribute to the session(s) in any way!


Scott G said...

You’ve been such an amazing role model Brett. Sharing your processes has enriched my life far beyond trading acumen. Gaining exposure to your processes is simply fascinating. By sharing your intellectual horsepower, you help to lift us all.

It is very challenging to just process a month’s worth of traderfeed posts – let alone turn the information into a Wall-Street-beating arsenal. It’s exciting and fulfilling to step into your “supercharged” world and experience the level in which you process information and formulate ideas.

Frankly, you share a glimpse into a world that I’d probably never have had a chance to experience anywhere else given my skills. I’m not super-gifted at trading but my goal it to give something back someday. Like you say, I’m going to concentrate on what I do right…

And go forward from there!

D TradeIdeas said...

Along comes another great post that's worthy of being framed and mounted on our internet hallway. We share similar WTH reactions to our software.

"If Trade-Ideas is so great why haven't you kept it to yourself to buy your own island, etc."

Software, like ideas, don't grow in a vacuum. More than half the innovation to the product comes from people's reaction and feedback to it. Without it the product and our growth would be stunted to say the least.

Brett Steenbarger, Ph.D. said...

Thanks, Scott; the feedback means a lot to me. It *is* amazing how much we get when we give.


Brett Steenbarger, Ph.D. said...

Hi David,

Absolutely! Great point: software only gets better with user feedback and suggestions--


MikeH said...

What did he say in regards to your book? How about Steidlmayer, Dalton, Neiderhoffer? The information may not be free, but it is freely available.

I'd say diametrically opposed are services that sell specific trade "calls". Why would they make this information available? A common arguement is that they are better analysts than traders. Hmmm, wouldn't you just hire someone to do your executions and manage the position?

Brett Steenbarger, Ph.D. said...

Hi Mike,

Great points! The best books give a lot away. Thanks for the note--


Yaser Anwar said...

You are the besttt!!!!!!!!!!!!!!!