Monday, March 29, 2010

Constructing Experience and Other Good Monday Reads

* The importance of constructing--and reconstructing--our mental maps;

* The experience of discrepancy is what rewires our thinking and feeling;

* Stocks trading cheap relative to junk debt;

* Rising yields could pose challenges; good overview of economy;

* Making sense of the recent rise in yields;

* Canada and California: both in bad financial shape;

* April has been a good month for stocks;

* Subprime mortgage securities on the rise;

* Risk on the rise at AIG;

* Consumer spending continues to rise;

* Top rated stocks from MSN StockScouter;

* The challenge of reforming banks;

* Stocks are where they were in December, 1998.
.

2 comments:

Stephen Gibson said...

Take a read of the journal process I been using the last year or so. I upgraded it even better.

http://whitebartrading.blogspot.com/2010/03/trading-journal.html

This is an example

http://www.pmgcommunications.com/tjournal.htm

NQ Trader Jay said...

Brett, I realized that I was using my trend-trading methods in non-trending markets. This is basically me breaking the rules because in ranging markets, I get stressed and change state to the state of mind where I am a habitual gambler, high risk taker, rule breaker, and undisciplined. So I did the opposite after losing minimum margin, that worked, so thats when I realized this. There's more to it in my blog, but opposite for me was fading myself. Fading my urges to use trend-trading setups in non-trending markets.

Sounds simple, however, it is not, it is psychological and based on your main point that behavior is state based.

So I now fade the setups that I see are traps for traders who also see what I saw, which is perfectly nice trend-based setups but in a range, as well as taking my trend-based setups in a trend. (( i had also under stress faded the trend in the past and lost of course, but that was after triggering stress after losing from being in the range...))

I am doing this simulated only, until I have a large net gain, and only then will I go and reload account to go live again.

I feel transformed.