Best Thread Trading Psychology

[foroom lluzers]

Impulsivity (or impulsiveness) is a multifactorial construct that involves a tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Traders who are impulsively looking for trading thrills, while telling themselves they are doing it to make a profit. Market timing, and all successful trading for that matter, requires that investors clamp down on emotional impulsive behavior.Impulsive traders will have great difficulty being successful (profitable) market timers.

I'm very unpredictable. Very, very impulsive. Extremely. Absolutely! Sometimes I don't know what I want to do from one day to the next. I can't enjoy anything premeditated; I just do it as I feel it. But whatever I do is motivated by honesty.


Search on google for impulsive traders and traders impulsivity / impulsive trades

https://www.google.co.uk/webhp?sour...n=1&espv=2&ie=UTF-8#q=IMPULSIVITY+AND+TRADERS

 

[foroom lluzers]

Self sabotage:Simply put, trading stresses us out. Stress leads to a cluster of natural defensive reactions that bias us to avoid precisely those risky situations that actually present the greatest possibility for monetary reward, and to seek out seemingly safe situations that actually offer losses.

Search on google for self sabotage traders /trading

https://www.google.co.uk/webhp?sour...=2&ie=UTF-8#q=self+sabotage+traders+/trading+

 

[foroom lluzers]

 

[foroom lluzers]

Patience is not simply the ability to wait - it's how we behave while we're waiting.Patience is necessary, and one cannot reap immediately where one has sown.search on google and youtube videos for Trading is a patience game


Succesful traders are patient ,they need to keep their mind occupied (while waiting for entries)with non-trading activities ,killing time is boring , so just post on forum.We are not meant to be doing nothing , our phsyche will attack us for sitting and doing nothing.Forums contributions can stimulate our reward pathways adequately if we are to function well emotionally, mentally and physically.Just posting on forums is can stimulate reward pathways , I achieved something.

The practice of patience toward one another, the overlooking of one another's defects, and the bearing of one another's burdens is the most elementary condition of all human and social activity in the family, in the professions, and in society.


we have to get a certain amount of pleasure and stimulation or rewards from our daily activities and what we put into our bodies. If we don't, then we create a pleasure deficit or what is known as "reward deficiency," and are subject to depression, anxiety and poor performance. Each day we have to stimulate our reward pathways adequately if we are to function well emotionally, mentally and physically.

There is a conflict between patience required to wait for the high probability entry , and our phsyche , we can not be sitting idle doing nothing.High probability trading requires sitting patiently

https://www.google.co.uk/webhp?sour...ie=UTF-8#q=patience+trading+traders+impatient

http://www.trade2win.com/boards/indices/222250-dow-thread-traders-dow.html#post2892938

 

[foroom lluzers]

Most people are not successful when it comes to trading. Why?

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

https://www.google.co.uk/webhp?sour...v=2&ie=UTF-8#q=95%+of+traders+lose+psychology.

 

[foroom lluzers]

Just search on google with the following words "blind spot in the eye emotions cognitive biases hippocampus shutdown " .

https://www.google.co.uk/webhp?sour...motions+cognitive+biases+hippocampus+shutdown

Screen watching traders often trade their cognitive biases , put on trades based on their biases , instead of following their systems.

This adds to a negative edge for scalpers ,days traders and short tem traders.They find it difficult to
process day trading information.The swing traders can avoid this negative edge

https://www.google.co.uk/webhp?sour...espv=2&ie=UTF-8#q=success+rate+of+day+traders

Search on google for" success rate of day traders".

 

[foroom lluzers]

Search on google for "How to master your brain during stress responses "In a stress response , your brain shuts down , during trading activity , you are prone to trading errors and losses.

Three Skills that Help You Master Your Brain’s Response to Stress

1. Mindfulness
2. Cognitive Flexibility
3. Bringing in the Positive

Search google for mindfullness

https://www.google.co.uk/webhp?sour...&espv=2&ie=UTF-8#q=mindfulness+videos&tbm=vid

 

[foroom lluzers]

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. During an Amygdala Hijack, the amygdala "hijacks" or shuts down the neo-cortex.

The prefrontal cortext holds the circuitry we need for abstract thought. It allows us to concentrate on the task at hand while storing useful information in temporary storage for later on. It also prevents you from performing inappropriate actions and is basically the command centre for the brain.


Search on google for "amygdala+hijack" or "neocortex shutdown"
https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=amygdala+hijack

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=neocortex+shutdown

 

[piphoe]

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. During an Amygdala Hijack, the amygdala "hijacks" or shuts down the neo-cortex.

The prefrontal cortext holds the circuitry we need for abstract thought. It allows us to concentrate on the task at hand while storing useful information in temporary storage for later on. It also prevents you from performing inappropriate actions and is basically the command centre for the brain.


Search on google for "amygdala+hijack" or "neocortex shutdown"
https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=amygdala+hijack

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=neocortex+shutdown

He's right. Like the way he put it.

 

[foroom lluzers]

http://www.trade2win.com/boards/psy...nt/194038-no-plan-no-trade-5.html#post2893490

https://www.google.co.uk/webhp?sour...F-8#q=stress+response+robert+sapolsky&tbm=vid

 

[foroom lluzers]

http://www.trade2win.com/boards/gen...erfect-trade-entry-look-like.html#post2893658

http://www.trade2win.com/boards/psy...nt/194038-no-plan-no-trade-7.html#post2893734

you got to put the time in.

must be willing to stare at a monitor for very long times.

Trading is mentally very exhausting , you can not watch screen effectively for more than 6 hours.When you are tired ,you are prone to errors like pilots who mess up

https://en.wikipedia.org/wiki/Pilot_fatigue

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=pilot+fatigue

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=pilot+fatigue&tbm=vid

 

[foroom lluzers]

Raised levels of the hormones testosterone and cortisol can make traders take more risks, which could create instability in financial markets, a study suggests.
Researchers said stressful and competitive working environments could be increasing hormone levels and having an impact on decision-making.
Volunteers played a stock market game while hormones levels were measured.
Experts said it was important to know how hormones affected traders.
Both cortisol and testosterone occur naturally in the body. Levels of cortisol increase when we experience psychological or physical stress. This causes the blood sugar levels to rise and prepares the body for a "fight or flight" response.

http://www.bbc.co.uk/news/health-33363948

 

[foroom lluzers]

http://www.bbc.co.uk/news/business-19849147

'Gekko syndrome'
So why do banks recruit these gamblers in the first place?
"What I have observed is a big emphasis in banks on technical competence - high cognitive ability or IQ," says Mr Curnier.
"When it comes to EQ [Emotional Quotient], my sense is that people are not spending a lot of time focusing on that."
Michael Douglas
Image caption
Does the "high roller" image of Gordon Gekko attract the wrong kind of candidate?
EQ is a measure of individuals' ability to manage their emotions and their relations with others, developed by psychologist Daniel Goleman.
Mr Curnier says many traders suffer from "Gekko syndrome", like the "greed is good" anti-hero of the film Wall Street.
They lack self-awareness - the ability to understand their own emotions and how they affect others.
The aggressive, risk-taking, boundary-pushing, "high-roller" image of the trader tends to attract exactly that kind of applicant.

http://www.bbc.co.uk/news/business-19849147

 

[foroom lluzers]

A few videos by Dr Steenbarger on youtube called:Trading Coach Shares Views on Three Common Problems for Tra

Nice article on internet by Dr Steenbarger called "A Dozen Thoughts on Trading Stress and Emotion"

 

[AlexCZ]

I recommend this article about trading education and psychology of trading:
https://tradinglab.tech/en/books/ps...-trader-performance-by-brett-steenbarger.html
This is a review of Brett Steenbarger's book “Enhancing Trader Performance. Proven Strategies from the Cutting Edge of Trading Psychology”

 

[dynamicresearch]

Above posts are very informative. I look forward these kind of post in future too

 

[Robbe]

I agree with the point that many people lack self-understanding and many really fail to notice a very important factor - emotions.

 

[shadowninja]

I agree with the point that many people lack self-understanding and many really fail to notice a very important factor - emotions.

Definitely. The problem is, when you're angry or stressed, you often don't realise it.

 

[Arashimuro]

I've read in one book that when you trade you need to put emotions aside, but it's not that easy because we're all human beings and emotions're our natural thing.