Kiwi's thoughts on trading psychology

[nine]

One more delay before Dr Bruce. I think its worth trying to agree the sort of problems that can be dealt with under trading psychology.

1. Habits that get in the way of trading. These may happen at a level below conscious thought causing you to take impulsive and sometimes seemingly unexplainable actions deleterious to trading success.

2. Fears that, happening in real time, cause you to exit trades early, not take trades you should etc etc etc.

3. State issues: Overconfidence, focusing on the wrong things (making money on this trade).

4. Self-sabotage where everything should be fine but for some reason the trader damages her success.

I would say that these may overlap and intermix. They may also not be a good way of classifying the issues. I chose them because they represent a spectrum of how you might deal with them from habits (can't perceive why you do it in real time) to fears (can feel it if you work at perception but may not be able to perceive the thoughts driving the feelings) to state issues (you can feel your overconfidence, the thoughts that drive it are quite obvious to you as you have them) to self-sabotage which I think is at a psychoanalytic level and beyond what I think this thread might address.

Any suggestions on a better taxonomy?

 

[Crap Buddist]

One more delay before Dr Bruce. I think its worth trying to agree the sort of problems that can be dealt with under trading psychology.

1. Habits that get in the way of trading. These may happen at a level below conscious thought causing you to take impulsive and sometimes seemingly unexplainable actions deleterious to trading success.

2. Fears that, happening in real time, cause you to exit trades early, not take trades you should etc etc etc.

3. State issues: Overconfidence, focusing on the wrong things (making money on this trade).

4. Self-sabotage where everything should be fine but for some reason the trader damages her success.

I would say that these may overlap and intermix. They may also not be a good way of classifying the issues. I chose them because they represent a spectrum of how you might deal with them from habits (can't perceive why you do it in real time) to fears (can feel it if you work at perception but may not be able to perceive the thoughts driving the feelings) to state issues (you can feel your overconfidence, the thoughts that drive it are quite obvious to you as you have them) to self-sabotage which I think is at a psychoanalytic level and beyond what I think this thread might address.

Any suggestions on a better taxonomy?

Taxonomy is the practice and science of classification. I thought it might be the new conservative parties smear campaign's populous buzzword slogan come the next general election . As in "the labour party has turned this countries economy, into a "Taxonomy". boooo.. booo. here, here.... order, order in the house..


Ok I had to look it up, so thats what it is.

I have one, and I think its a biggy.

Knowledge-Essence of the market. Understanding the essence of the market the trader is attempting to compete in.

I suggest that lacking this one, may be causative of at least 2 of the 4 above. And maybe 3 and 4 are associated with past and/or present unresolved individual life issues maybe.

Now take a trading psychologist, what papers have been written explaining the essence of the market ,as observed by them? Or do they not think it important. For instance they wouldnt see anything wrong with a trader wanting to trade a coin flip with 3 x Atr stop, for instance.

Would the psychologist say, firstly, that approach is total nonsense, no wonder you have fears, worries, filthy habbits and confidence issues. etc?

Just curious..

 

[Paul71]

Waiting!

People are always waiting for the market to do something!

Do you think the markets are the thinking man's way of wishing your life away?

What are you waiting for?

 

[nine]

Stay up one night and trade the Hang Seng ... no wait required

But, more seriously, here's a site that has a 2 part paper that's now available free. You might get something out of it:

..:: DO NOT TRADE ON ADRENALINE © ::..
http://www.precisefutures.com/free_doc/doc_1.html

 

[nine]

I'm not motivated to develop this thread much at present but here's an interesting presentation that a friend mailed me last week.

Denise Shull on emotions and an approach to them.