subconcious emotional trade executions

Apr 3, 2017
3,620
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#1
Most trading decisions are made by the faster emotional brain.Trading is stressfull mental activity , it arouses emotions and stress responses , Your emotional brain is faster than your rational brain , it calls all the shots in live trading.

Trading is a mental sport in a fully charged emotional environment.

Researchers from the Campus de Excelencia Internacional Moncloa (UCM-UPM) has shown that the amygdala in the human brain is able to detect possible threats in the visual environment at ultra-fast time scales.This means that screen based traders are trading ,based on emotions rather than systems and rules.


When we make trading decisions, we’re not always in charge. We can be too impulsive or too deliberate for our own good; one moment we often let our emotions get the better of us. Then we’ll pull a brilliant decision out of thin air—and wonder how we did it. Though we may have no idea how decision making happens, neuroscientists peering into our brains are beginning to get the picture.

https://hbr.org/2006/01/decisions-and-desire

https://www.sciencedaily.com/releases/2016/06/160615095132.htm

https://www.mrc-cbu.cam.ac.uk/people/tim.dalgleish/

http://www.trade2win.com/articles/1542-managing-emotions-while-trading


losing money hurts emotionally.


http://www.trade2win.com/boards/psy...n-when-you-win-lose-trade-18.html#post2900950
 

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Apr 3, 2017
3,620
136
73
#2
What this means ,is that traders sitting in front of screens ,processing so much information , are at high risk of amygdala hijackings and stress responses.This is why set and forget strategies are best suited for succesful trading.

An Amygdala Hijack is an immediate and overwhelming emotional response out of proportion to the stimulus because it has triggered a more significant emotional threat. The amygdala is the part of our brain that handles emotions.

Search on google for amygdala hijacking and stress reponse and youtube videos for examples of amygdala hijackings .


amygdala hijack examples


http://www.trade2win.com/boards/psy...s-psychology-risk-money-management-forum.html

 

WklyOptions

Active member
Apr 26, 2014
265
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#5
Most > 95% do Trading backwards...

Hi FI,

I see that you are quite busy and put up tons of Posts.

However, your Posts 1 & 2 above are very good, and accurately summarize the High Performance Mindset challenges. Unfortunately > 95% don't have the proper Mindset training and conditioning to MOVE INTO the TOP 1% - 3% of Winning Traders.

In fact most Traders THINK and PERFORM Trading in reverse - and are surprised that consistent Winning Income Trades don't come their way!

Common Retail Trader Mindset = Have - Do - Be:
A. HAVE need or interest or desire to make more Income to satisfy a specific financial objective (vacation, life style, etc).
B. Then decide to DO Trading - ease of access, Images/Beliefs of quick Profits and easy job.
C. BE a Trader - suffer drawdowns - search and keep changing Systems. But never achieving Consistency (due to lack of proper High Performance training, conditioning) - trapped in negative losing cycles in Trading & Investing.

Successful Professional Trader Mindset = BE - DO - HAVE:
D. Decide & Commit to BE High Performance Trader - understand NEED for intense Mindset re-program and re-training conditioning on a Daily Basis! Seeks professional Mentorship. Accepts changes in Values, Beliefs, References.
E. WILLING to DO WHATEVER IT TAKES to Learn and Evolve and Develop into a High Performance Trader including allowing for sufficient TIME for trainings. Then able to DO High Performance Trading. Achieve CONSISTENT Profitability.
F. Able to apply Leverage and Compounding over TIME. Then able to HAVE financial objectives.

If newbies and Traders in T2W that have NOT YET achieved Trading Consistency can pursue and FOCUS on (D-F) and NOT on (A-C) above...

...the Trading Journey and Self Discovery and Self Growth can be experienced by the many - not only by the few in the know!

Good Trading to all.

WklyOptions
 
Sep 8, 2015
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#6
Lately I've been thinking a lot about automatic trading, one of its advantages is the lack of emotions. But autotrading has its drawbacks too...
 

piphoe

Well-known member
Oct 31, 2015
10,046
194
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#8
i miss fl;makes no sense to ban someone as smart ..

keep banning smart ...and you got what we have here.


 

Dagerban

Active member
Sep 17, 2015
104
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#11
Special exercises and trainings are necessary to prevent your feelings and emotions from prevailing over your sense. For example, yoga really helps me to cope with emotional splashes and to control them.
 
Likes: shadowninja
Apr 28, 2018
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#13
Day trading i was always impulsive which lead to poor results. When i switched to longer holding times my performance improved dramatically, making a trade and holding it for days or weeks led to less emotion attached to the trade. It also allowed me to clear my mind and think clearly. I think with daytrading its like being in a casino, you know that you would not normally gamble that way - once your outside you can see the foolishness.

I personally think day trading should be left to quants but longer term and investing can be done very successfully on a discretionary basis.