Monday, February 11, 2008

Trading Psychology and Trader Performance: Selected Posts From 2007 - Volume Three

Many thanks to readers for the comments and emails on the post collections from 2007. Here's more of the "Best of TraderFeed" for 2007, with selected posts from the third quarter:

* What research tells us about underconfidence, overconfidence, and decision-making bias; how we make decisions in hot and cold cognitive states; what traders can do when they lose confidence;

* Anticipating volatility for the stock market;

* How to use imagery to make behavior changes; using emotion to change emotion; how to lose well in markets;

* Ten principles of short-term trading that have served me well; a common, but losing strategy for short-term traders;

* Learning styles and their importance to trading performance;

* How to become your own trading coach; how to set goals for success;

* Mali's life lessons; five principles of personal growth;

* Evaluating your mood during trading; improving your ability to cope with trading stresses; how problems relate to past coping


Best of 2007 - Volume One

Best of 2007 - Volume Two


Anatrader said...


Thank you again for your Selected Posts- Vol 3; I must have missed the post on Mali and am amazed at her self-grooming after you took her in. She certainly is a role model for us,pointing the way to personal growth even when handicapped.

Mali (after a country in Africa) is truly a feline beauty!

SSK said...

Hello Brett, anatrader, Wow, lots to read! Thank you for the wonderful job linking your catalog in a fine fashion. Thank you agian. Anatrader, keep up the work in Market Profile theory. I have learned a lot from the mentors that I have listed on my work in progress. I looked at the site you mentioned and read some of the posts. The friday post makes good points, and I like the fact that he references Dalton. Steve ~SSK~

ainkurn said...

almost too much to read :)

SSK said...

Brett, the first link to the overconfidence article is excellent. In your example brings to mind some reminders not to exclude your emotions in your self talk and just center on analytics. I notice that when using the trading analyzer to track and display in a graph, my results are catagorized by a running history and also by each month with the same starting balance. I can then by comparision have an aid to get my mind on track by looking at recent history and getting refocused. Also if you implement a new strategy in a new month, you can agian, compare specific outcomes. It helps in balancing those two emotions you speak about. Fine article. Thanks. Steve ~SSK~~

SSK said...

Brett, the MIT slide show is neat. In your paragraph you state, "A better approach is to use structured guided imagery to recreate hot situations and then mentally rehearse desired thoughts and behaviors under those conditions"., I noticed that if you watch a replay of the days profile building and watch at the same time the chart you follow for entrys, in my case a 5 tick reversal chart, you can feel the emotional response watching it, even though subconsciously you know the outcome. Very interesting exercise. I post those charts in my chart books, and review them during there production and some times once on the web there after. I think it is very helpful and helps solidify in your mind,(if you watch the replay soon after the market closed) so that you still remember the emotional experience when you see the same area on the replay, I believe helps me to refine my trading methodology with out trepidation. This allows me to take the other side of the emotional experience, almost real time. Great article. A whole days of reading! Great work! Steve ~SSK~

SSK said...

Brett, I like the point that you make in the "When traders lose confidence part 3" regarding limiting losses so that you can continue in your learning curve. It took me a long time, and an introduction to your work that allowed me to see the value of what I am doing on a simulated basis, and what the website facillates for me. Wonder stuff when you start to see changes in your behavior. Steve ~SSK~

SSK said...

Brett, the article and exercise in "Using Emotion to change emotion" is very insightful. If I could ever get my self speak in my snippets production to the level that you relate through the exersice with that trader and his thoughts of his family as a catalyst for his trading behaviour, you have a powerful tool. It gives me a lt to think about in my work. Interesting indeed. I am glad though that my family takes an interest in my work so there is an outlet to talk about things, but still not on the level you display through your exercise. Thank you. Steve ~SSK~ BTW, great link to Stanford.

Brett Steenbarger, Ph.D. said...

Hi AnaTrader,

Mali is indeed an inspiration for our family. Hard to imagine a cat with worse prospects in life when we adopted her.


Brett Steenbarger, Ph.D. said...

Thanks for the feedback, Steve!