Better than you know what ?

[apples10]

In this months Bloomber Markets magazine there's an article on 'mapping the traders brain'.

'The pleasure of orgasm, the high from cocaine, the rush of buying . . .the same neural network governs all three'. 😎

'The body automatically responds when a person makes a risky trade; breath rate increases, pupils dilate, heartbeat rises, perspiration level elevates and blood pressure rises' 😱 😱 🙄

Can see where they're coming from. . . . . . . .maybe why I always have a box of tissues at my desk 😆 😆 😆 . .. . . . . . for the sweaty palms . . . . . . . 😆 😉 :-0 😕 😱 😆

 

[trendie]

😆 😆 😆

whenever I place a trade, I get stopped out too soon. 🙄
( even if I distract my mind by thinking of euribor )

I also keep getting spam mail offering to increase the size of my account.

😆 😆 😆

 

[oatman]

"Can see where they're coming from. . . . . . . .maybe why I always have a box of tissues at my desk . .. . . . . . for the sweaty palms . . . . . . . "


Hope you weren't a floor trader 😆

 

[SOCRATES]

In this months Bloomber Markets magazine there's an article on 'mapping the traders brain'.

'The pleasure of orgasm, the high from cocaine, the rush of buying . . .the same neural network governs all three'. 😎

'The body automatically responds when a person makes a risky trade; breath rate increases, pupils dilate, heartbeat rises, perspiration level elevates and blood pressure rises' 😱 😱 🙄

Can see where they're coming from. . . . . . . .maybe why I always have a box of tissues at my desk 😆 😆 😆 . .. . . . . . for the sweaty palms . . . . . . . 😆 😉 :-0 😕 😱 😆

Simple, isn't it ?

The solution is not to make risky trades.

 

[Directional]

I wonder if that would explain why big traders seem to have the aura of being sex mad decadent coke snorting trade-a-holics? as promoted by Trader Monthly.. but surely must have a grounding in fact somewhere

 

[7thSignalTrader]

Simple, isn't it ?

The solution is not to make risky trades.

Too simple.

 

[frugi]

Indeed. What one really needs is algorithms, and lots of them. 🙂

Old ground I know, but if one trades sensibly with learned detached professionalism then

'The body automatically responds when a person makes a risky trade; breath rate increases, pupils dilate, heartbeat rises, perspiration level elevates and blood pressure rises'

won't occur. But ...

(The key word in the quoatation is "risky". Any trade is of course risky, but for the purposes of sensational journalism I assume they mean "high risk". Swing 50 not 10 cars on a whim and move the stop a bit for "breathing room" sort of risk. )

These symptoms obviously suggest a trader who isn't in control.

One who, due to his foolish assumption of unecessary - uncomforable - risk (that translates badly to the primitive brain as physical danger), is rapidly being prepared to fight or flee a situation which is frightfully ill-suited to this response. To make it worse, he is then shocked by developments beyond his control and contrary to his opinion, ones which totally fall outside of the usual sphere of mammoth hunting and delegating the fuel and wood situation. So this poor fellow is practically forced to behave inappropriately in the situation (despite often being consciously aware of it - that rubs it in eh, especially later); his rational view to the future is obscured, and he acts accordingly, desperately.

Contrast this to one who assumes a comfortable level of risk. In this case the adrenaline levels barely rise and even malevolent developments are far less likely to lead to stupid choices. Why? Cause they don't seem malevolent and threatening any more (they never were, of course). Adjust risk and suddenly a crisis has become an opportunity. Stop out, move on, give yourself time to learn; the subconscious adores the space too.

 

[SOCRATES]

Too simple.

Do you know why ?

Because in terms of practical reality there is no such thing as risk.

Risk implies an outcome that cannot be dealt with under ordinary circumstances.

But in the practical reality of trading there are only two possible outcomes.

These are either being right or being wrong.

The correct attitude has to be cultivated in order to be able to deal with favourable or unfavourable outcomes as they occur, with detached pragmatism.

 

[starspacer]

Contrast this to one who assumes a comfortable level of risk. In this case the adrenaline levels barely rise and even malevolent developments are far less likely to lead to stupid choices.

….and you will never accumulate sufficient wealth to escape the helpless misery of poverty (unless you are Croesus to begin with 😀 ). You must achieve trading mastery and then advance confidently in the pursuit of your dreams. Eliminate the attachment to money and you negate the reason for your stress. If you cannot do this, you have not yet achieved the desired state and you must continue to learn.