mind traps affecting traders

Apr 3, 2017
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#21
More mind traps for screen based traders .

http://www.trade2win.com/boards/edu...92-your-brain-wasnt-built-handle-reality.html



Traders are like monkeys , they suffer from the MONKEY BIAS, THEY DO MONKEY BUSINESS ON LIVE ACCOUNTS


Like this?

Humans are very clever and we get clever , when it is not in our interests .When given a highly profitable system , we second guess systems , because we are smart and smarter than the creator of the system.We are like monkeys and do monkey business on live accounts .It is called self sabotage.




We are curious and try new things , inventions and do the same in trading.
We get too clever for our own good in trading ,like these monkeys.

https://www.youtube.com/watch?v=SCrme1JQ5vQ
 
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#23
My mind will make an instantaneous decision. One minute, I'm talking to a friend; next minute, I'd place a bet on. Something will trigger me and the next thing you know, I'm gambling. I'm into online sports gambling, cfd trading and the casino, shifting from one to the other depending on my mood at the time. I'm in great pain right now because I have lost a lot of money.

It's no secret the world of gambling requires just as much skills with a deck of cards as it does mind tricks.But what exactly makes gamblers' brains tick?

https://www.gamblingtherapy.org/en/psychological-trap-gambling-illusion-control

https://www.google.co.uk/search?q=m...ceid=chrome&ie=UTF-8#q=mind+traps+of+gamblers
 
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#24
Thanks to millions of years of evolution, we are highly intelligent biological organisms, but when it comes to making financial decisions, we can be unduly influenced by ancient brain skills, such as hair trigger responses to perceived fear.In financial realms, Formal stock and bond trading markets came to be a mere four centuries ago.All of which means that, when it comes to money, your brain has had a lot of catching up to do in a very short time

 
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#25
Stress Facts
What is Stress?
Stress is an automatic reaction to danger or demand. It is your body's reaction to some challenging
situation that prepares you for action with a "fight or flight" response. Stress hormones - adrenalin,
noradrenalin, and cortisol - are pumping out, which makes your blood pressure and heart rate increase
and your muscles tighten. Some level of stress can be good in the short-term, especially in emergency
situations. It can serve as an incentive or motivator.
Types of Stress
Acute: Immediate stress usually related to a one-time event that comes and goes quickly.
Effects can last from minutes to hours, days or weeks.
Chronic: Long-term and caused by a series of stressful events or an ongoing situation.
Causes of Stress
External Factors:
• Environmental: noise, bright lights, heat, confined spaces
• Social: rudeness, bossiness, aggressiveness by someone else
• Organizational: rules, regulations, "red tape," deadlines
• Major Life Events: deaths, losses, new responsibilities, changes
• Daily Hassles: tight budget, computer glitches, car breakdowns
Internal Factors:
 Lifestyle Choices: caffeine, limited sleep, overloaded schedule
 Negative Self-talk: self-doubt & criticism, pessimism, overthinking
 Mind Traps: unrealistic expectations, personalizing things, rigid thinking, exaggerating, allor-nothing
thinking
 Personality Traits: perfectionist, workaholic, pleaser
Symptoms of Stress
Physical: fatigue, headaches, insomnia, muscle aches/stiffness, heart palpitations, chest pains,
abdominal cramps, nausea, trembling, sweating
Mental: decreased concentration and memory, indecisiveness, mind racing or going blank,
confusion, loss of sense of humor
Emotional: anxiety, nervousness, depression, anger, frustration, worry, fear, irritability,
impatience, short temper
Behavioral: pacing, fidgeting, nail-biting, foot-tapping, increased eating, smoking, drinking,
crying, yelling, swearing, blaming, and throwing things
 
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#26
Human mind traps are the same , if applied to trading or any other activity.There are thinking errors between you trading profitability and actual trades based on thinking erorrs.Human thinking traps are the same for every other acivity.

search on google for " thinking errors "

you tube video called "Cognition: How Your Mind Can Amaze and Betray You - Crash Course Psychology #15 "


more mind traps here :

http://www.trade2win.com/boards/educational-resources/223174-subconscious-errors.html#post2895796
 
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#27
Faster emotional brain is active in live trading , it blocks rational brain , sometimes they are conflicting in trading , when trying to control emotions

Trading is stressful mental activity , it arouses emotions and stress responses , Your emotional brain is faster than your rational , it calls all the shots in live trading.

Our emotions have helped us immeasurably over the course of human evolution. Emotional responses are milliseconds faster than cognitive (thinking) responses; the lightning-fast reactions that bypass the rational brain centers were often survival responses for our distant ancestors. The limbic brain sends us the warning of a crisis before the rational brain can even process the incoming signal: the body has been alerted and is ready to act on our behalf.

http://www.hrdpress.com/site/html/includes/items/SBEI.html
 
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#28

Traders have to work very hard on their psychology.Problems are created by mind traps and thinking traps.Traders need to change their thinking.It is the wrong thinking , wrong biases , beliefs , vision , attitude and other emotional desires .........example I must make money everday.

http://www.trade2win.com/boards/psy...ire-brain-trading-perfection.html#post2899732

search on google for "changing thinking patterns pdf"
 
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#30
http://www.trade2win.com/boards/psy...ation-mastering-monkey-brain.html#post2902760


Paying more attention to the present moment – to your own thoughts and feelings, and to the world around you – can improve your mental wellbeing.It's easy to stop noticing the world around us. It's also easy to lose touch with the way our bodies are feeling and to end up living 'in our heads' – caught up in our thoughts without stopping to notice how those thoughts are driving our emotions and behaviour.
 
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#31
Your thoughts are powerful and they cause physical reactions in your brain and body.
Bad, mad, sad, hopeless or helpless thoughts release chemicals that make you feel bad. Your hands get cold and you sweatmore. Your heart rate quickens and flattens (which isn’t good for your health), you breathe more quickly and more shallowly,and your muscles tense up.
Negative thinking causes serious decreases in cerebellum and temporal lobe activity. When activity in the cerebellum is low,it’s harder for you to think and process information quickly.
On the other hand, happy, positive, hopeful, loving thoughts release chemicals that make you feel good. Your hands feel warmer, you sweat less, your heart rate slows and starts to bounce around (a good thing), your breathing slows and deepens,and your muscles relax.

http://www.trade2win.com/boards/psy...t/223388-rewire-brain-trading-perfection.html
 

gerryg

Active member
Sep 9, 2013
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#32
Human mind traps are the same , if applied to trading or any other activity.There are thinking errors between you trading profitability and actual trades based on thinking erorrs.Human thinking traps are the same for every other acivity.

search on google for " thinking errors "

you tube video called "Cognition: How Your Mind Can Amaze and Betray You - Crash Course Psychology #15 "


more mind traps here :

http://www.trade2win.com/boards/educational-resources/223174-subconscious-errors.html#post2895796

Are you talking about cognitive distortions? Yeah its definitely a point to pay attention to. Especially bayesian trap (incorrect calculation of a probability of premises that lead to an outcome which odds are also inaccurately calculated)
 
Apr 3, 2017
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#33
Are you talking about cognitive distortions? Yeah its definitely a point to pay attention to. Especially bayesian trap (incorrect calculation of a probability of premises that lead to an outcome which odds are also inaccurately calculated)
An example of a mind trap is

You know the direction , in this case you go long , but the price keeps breaking down against you several times , before it heads higher .In this case the market has become mixed , intially it moves forward then goes to your tight stops ,maybe later overnight it moves in your intended direction.Your thinking is telling you to buy , but the market is hurting your current judgement on direction.

In the mean time our automatic mind is fast at work continually calibrating the movements of our hands on the mouse , it starts reacting to these movements. You become stressed as a result of this market behaviour , the automatic mind catches the stress response , it starts defending your account balance subconciously .The only way it does it is , it closes positions that go negative to reduce your losses , and starts going short to make you profit .All this happens subconciously , the automatic mind is doing it for you automatically i.e opening positions ,closing them ,reacting to losses .This all happens fast without your concious awareness.

This is a mind caught in a mind trap.

It happens to real traders .