Comments on: When Will It Stop? … (the advice that is) http://traderpsyches.com/when-will-it-stop-the-advice-that-is Trading Psychology, the Thinking Man's Market Psychology Thu, 13 Oct 2011 21:28:50 +0000 hourly 1 http://wordpress.org/?v= By: DKS http://traderpsyches.com/when-will-it-stop-the-advice-that-is/comment-page-1#comment-53 DKS Wed, 29 Oct 2008 00:28:31 +0000 http://traderpsyches.com/blog/?p=141#comment-53 Allen - Appreciate the subscription. ... and your participation. Allen – Appreciate the subscription. … and your participation.

]]> By: DKS http://traderpsyches.com/when-will-it-stop-the-advice-that-is/comment-page-1#comment-52 DKS Wed, 29 Oct 2008 00:27:48 +0000 http://traderpsyches.com/blog/?p=141#comment-52 "Isn’t it that knowing about decision-making and behavioral biases or biases in probability and belief might help too" Armin- I do personally believe that an intellectual understanding of the new model of decision-making is the first step. ... and Chantal - Thank you. “Isn’t it that knowing about decision-making and behavioral biases or biases in probability and belief might help too”

Armin- I do personally believe that an intellectual understanding of the new model of decision-making is the first step.

… and Chantal – Thank you.

]]> By: DKS http://traderpsyches.com/when-will-it-stop-the-advice-that-is/comment-page-1#comment-51 DKS Wed, 29 Oct 2008 00:26:12 +0000 http://traderpsyches.com/blog/?p=141#comment-51 Neal ... may I submit there is no such thing as an irrational emotion? In other words, I don't think rationality is the yardstick with which to evaluate emotions. They are just feelings and usually they make sense when you get to the root of them. What we need is a whole new approach to our thinking ABOUT our feelings... we will then have the tools to notice and interrupt biases of all types. imho. Neal … may I submit there is no such thing as an irrational emotion? In other words, I don’t think rationality is the yardstick with which to evaluate emotions. They are just feelings and usually they make sense when you get to the root of them.

What we need is a whole new approach to our thinking ABOUT our feelings… we will then have the tools to notice and interrupt biases of all types. imho.

]]> By: Neal http://traderpsyches.com/when-will-it-stop-the-advice-that-is/comment-page-1#comment-49 Neal Tue, 28 Oct 2008 16:59:45 +0000 http://traderpsyches.com/blog/?p=141#comment-49 Perhaps when the advice to "execute without emotion" is offered, the 'expert' intends to warn against 'irrational' emotions (i.e. exuberance, or the fear of missing out), and the harmful expression of those emotions. An understanding of human psychology is very important, but it seems a historically successful, well-defined, written trading plan can go a long ways in minimizing emotional conflict. Confidence in one's trading strategy should help a trader execute more effectively and, in turn, grow to gain confidence in her execution skills. Without a well thought out and closely followed standard (trading plan), it is easy to have confirmation bias when looking at the charts. [Confirmation bias is the tendency to search for or interpret new information in a way that confirms one's preconceptions and avoid information and interpretations which contradict prior beliefs.] The more spontaneous and subjective a trader is (without a plan), the more likely emotional intelligence diminishes. For the skilled professional trader with time and experience, intuition can play a key role, and the preceding sentence is less likely. Perhaps when the advice to “execute without emotion” is offered, the ‘expert’ intends to warn against ‘irrational’ emotions (i.e. exuberance, or the fear of missing out), and the harmful expression of those emotions.
An understanding of human psychology is very important, but it seems a historically successful, well-defined, written trading plan can go a long ways in minimizing emotional conflict. Confidence in one’s trading strategy should help a trader execute more effectively and, in turn, grow to gain confidence in her execution skills.
Without a well thought out and closely followed standard (trading plan), it is easy to have confirmation bias when looking at the charts.
[Confirmation bias is the tendency to search for or interpret new information in a way that confirms one's preconceptions and avoid information and interpretations which contradict prior beliefs.]
The more spontaneous and subjective a trader is (without a plan), the more likely emotional intelligence diminishes.
For the skilled professional trader with time and experience, intuition can play a key role, and the preceding sentence is less likely.

]]> By: Armin Stuk http://traderpsyches.com/when-will-it-stop-the-advice-that-is/comment-page-1#comment-48 Armin Stuk Tue, 28 Oct 2008 14:21:25 +0000 http://traderpsyches.com/blog/?p=141#comment-48 ---desperately needs to understand the reality of how the human brain evaluates, decides and acts. --------------------------------------------------------------------------------------------- Isn't it that knowing about decision-making and behavioral biases or biases in probability and belief might help too I'm particularly aware, for instance of Base rate fallacy — ignoring available statistical data in favor of particulars, when making decisions. Seo and Barrett’s 2007 study helps me to understand a lot about emotions and investment performance ! —desperately needs to understand the reality of how the human brain evaluates, decides and acts.
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Isn’t it that knowing about decision-making and behavioral biases or biases in probability and belief might help too
I’m particularly aware, for instance of Base rate fallacy — ignoring available statistical data in favor of particulars, when making decisions.
Seo and Barrett’s 2007 study helps me to understand a lot about emotions and investment performance !

]]> By: Allen Taylor http://traderpsyches.com/when-will-it-stop-the-advice-that-is/comment-page-1#comment-47 Allen Taylor Mon, 27 Oct 2008 16:15:26 +0000 http://traderpsyches.com/blog/?p=141#comment-47 Nice writing. You are on my RSS reader now so I can read more from you down the road. Allen Taylor Nice writing. You are on my RSS reader now so I can read more from you down the road.

Allen Taylor

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