impulsive trades impulsivity

This is a discussion on impulsive trades impulsivity within the Psychology, Risk & Money Management forums, part of the Methods category; I am looking for guidance on what causes impulsive trades . Impulsive trades are done by the automatic mind http://www.trade2win.com/boards/psyc...g-traders.html ...

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Old Jul 23, 2017, 2:23pm   #1
Joined Apr 2017
impulsive trades impulsivity

I am looking for guidance on what causes impulsive trades .

Impulsive trades are done by the automatic mind

http://www.trade2win.com/boards/psyc...g-traders.html

There is an underlying layer of consciousness—call it the automatic mind—that processes information automatically without conscious awareness. We engage our automatic mind in virtually everything we do. While putting on a trade , for example, our conscious attention may be focused on what so-and-so said today while our automatic mind is fast at work continually calibrating the movements of our hands on the mouse . We shift seamlessly to conscious attention whenever the need arises ("Better get to the right. My exit is coming up."), but otherwise we execute thousands of discrete movements of hand with little if any direct awareness of them. Think about it: Are you aware of how many times you entered and exited trades without any reasons?

I have 3 links here

http://www.trade2win.com/boards/gene...g-impulse.html

Joe Ross was very good in his explanations.
Quote:
Originally Posted by Joe Ross View Post
Depending on your personality, background, training, and experience with the markets, you may have trouble reigning in your tendency to act on impulse.

For some people, being impulsive is in their nature. They have trouble focusing their attention. For others, being impulsive is related to emotionality. Some people have so much trouble controlling their emotions that they react impulsively out of frustration. . When the extremely emotional trader encounters one of these setbacks, he or she becomes overly agitated, and may close a position early, or in a fit of confusion, make a major trading blunder that can only be remedied by closing the position.

That said, any trader can act impulsively at times. There are many situational factors that contribute to being impulsive. Research has shown, for example, that when people are tired, they have difficulty focusing their attention. As much as part of your conscious mind cares about sticking with your trading plan, your unconscious mind thinks, "Who cares? I want to take a break." Psychological resources are limited. When you push yourself to the limits, you will have trouble focusing on your ongoing experience, concentrating on your trading plan, and sticking to it.

Other people may be impulsive because they lack experience with the markets.
When you have an incomplete trading plan in which important aspects are left unclear, you will have trouble following it.


https://www.andrewmenaker.com/category/impulsivity/

Impulsive traders tend to take action with less forethought than others at the point of entering the trade. It does not help even if they had thought through the trade the night before. This is because impulsiveness blinds or blocks out assessment and recall ability

http://www.littledada.com/2013/01/impulsive-trading/

Impulsive traders tend to take action with less forethought than others at the point of entering the trade. It does not help even if they had thought through the trade the night before. This is because impulsiveness blinds or blocks out assessment and recall ability



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Old Jul 23, 2017, 2:36pm   #2
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Old Aug 31, 2017, 2:23pm   #3
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foroom lluzers started this thread https://www.ncbi.nlm.nih.gov/pubmed/19410598

The frontal-cortical areas of the brain oversee behavioral control through executive functions. Executive functions include abstract thinking, motivation, planning, attention to tasks and inhibition of impulsive responses. Impulsiveness generally refers to premature, unduly risky, poorly conceived actions.

http://www.neulaw.org/blog/1034-clas...nd-impulsivity

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Old Aug 31, 2017, 2:40pm   #4
 
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very little time to hold "meetings" on a trade in this world of HFT. make split-sec decisions, calc
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if you have a little volatility, half an idea where sh^t will turn, and a reasonable stop, I might be able to start making $ off this venture
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Old Aug 31, 2017, 2:42pm   #5
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very little time to hold "meetings" on a trade in this world of HFT. make split-sec decisions, calc
all your trading is impulsive

http://www.trade2win.com/boards/gene...g-so-hard.html
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Old Aug 31, 2017, 2:48pm   #6
 
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Originally Posted by foroom lluzers View Post

"all", thats a bit harsh. i admit to making impulsive trades, and doubt any trader here would deny making the same from time to time. you get a hunch and go with it....

you can't see the reasoning behind my trades, and sometimes i don't so how can you judge?
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if you have a little volatility, half an idea where sh^t will turn, and a reasonable stop, I might be able to start making $ off this venture
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Old Aug 31, 2017, 2:56pm   #7
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Originally Posted by piphoe View Post
"all", thats a bit harsh. i admit to making impulsive trades, and doubt any trader here would deny making the same from time to time. you get a hunch and go with it....

you can't see the reasoning behind my trades, and sometimes i don't so how can you judge?
Depends how rapidly you think and over trade , frequently jumping from instrument to instrument , within minutes based on impulse.

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