rss

Greed is the Flip Side of Fear- Anirudh Sethi

Most people, I accept, would concur that childishness isn’t the reason for a solid, supportable society. Who of us needs a family where everybody pays a special mind to themselves, a club where individuals are attempting to sabotage our status or even a business where we should consistently watch our back. Individuals need and need to confide in each other. We need others to acknowledge what we need to state, to giggle at our jokes, to be concerned when we let them know of a mishap or sickness. At the point when we appear at a gathering, we need everybody to be glad to see us. To live in any case in a disconnected, defensive state is a bitterness.

 

To take a model, our lawful framework is of the “ill-disposed” sort, where we employ attorneys to guard our inclinations. In the court, truth is ever challenged. The proof is chosen and deselected. As disputants, our solitary desire is to be decided in a positive light. We are there to win.

 

Is our political framework very different? Constituent legislative issues, as an ongoing President put it, is no “round of bean-sack.” Most of us have come to acknowledge the possibility that government officials are going to slight each other. Decisions are events for crazy cases, inert gloats, and contemptible ambushes. Mud is tossed. Some of it sticks. When chosen, our side must indict its own point of view. Helping out the foe, in any event, tuning in to them genuinely, is taboo.

 

Our instruction framework comparatively prizes independence. We all are there to get our own degrees and push ahead with our own lives. Evaluations are an individual issue; papers and tests should communicate that. Gathering study, mentoring, and so forth are acknowledged; so are joint introductions. Yet, on the most significant occasions, it is the person’s abilities and information both probably exclusive issues that are estimated. (more…)

What Happens in Your Brain When Your Market View Is Completely Wrong

Eric Barker has a new article (link here) on how to win every argument. The article had a point which made me think whether the same situation happens in trading.

So it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as soon as the people realized that the information contradicted their world view, the parts of the brain that handle reason and logic went dormant, while the parts of the brain that handle hostile attacks – the fight-or-flight response – lit up. Essentially logic gets thrown out the window, and it just becomes a fight where you do anything to win.

A similar situation occurs in trading, when you have a certain expectation of how the market should behave. E.g. you might for various reasons, think that the market will go up. So when the market does not follow what you expect, you might initially make up excuses for it. However when the market continues to go completely in the opposite direction of what you expect, your logic and reasoning centers would shut down, your fight-or-flight response kicks in, you treat it like a hostile attack on you, and you would do anything to win (or not lose), e.g. keep averaging down. I’m sure this sequence of events led to many traders blowing up their accounts. It is pretty interesting that the experiment showed this as a ‘natural expected’ behavior.

As always, trade what you see, not what you think.

What Happens in Your Brain When Your Market View Is Completely Wrong

Eric Barker has a new article (link here) on how to win every argument. The article had a point which made me think whether the same situation happens in trading.

So it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as soon as the people realized that the information contradicted their world view, the parts of the brain that handle reason and logic went dormant, while the parts of the brain that handle hostile attacks – the fight-or-flight response – lit up. Essentially logic gets thrown out the window, and it just becomes a fight where you do anything to win.

A similar situation occurs in trading, when you have a certain expectation of how the market should behave. E.g. you might for various reasons, think that the market will go up. So when the market does not follow what you expect, you might initially make up excuses for it. However when the market continues to go completely in the opposite direction of what you expect, your logic and reasoning centers would shut down, your fight-or-flight response kicks in, you treat it like a hostile attack on you, and you would do anything to win (or not lose), e.g. keep averaging down. I’m sure this sequence of events led to many traders blowing up their accounts. It is pretty interesting that the experiment showed this as a ‘natural expected’ behavior.

As always, trade what you see, not what you think.

What Happens in Your Brain When Your Market View Is Completely Wrong

Eric Barker has a new article (link here) on how to win every argument. The article had a point which made me think whether the same situation happens in trading.

So it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as soon as the people realized that the information contradicted their world view, the parts of the brain that handle reason and logic went dormant, while the parts of the brain that handle hostile attacks – the fight-or-flight response – lit up. Essentially logic gets thrown out the window, and it just becomes a fight where you do anything to win.

A similar situation occurs in trading, when you have a certain expectation of how the market should behave. E.g. you might for various reasons, think that the market will go up. So when the market does not follow what you expect, you might initially make up excuses for it. However when the market continues to go completely in the opposite direction of what you expect, your logic and reasoning centers would shut down, your fight-or-flight response kicks in, you treat it like a hostile attack on you, and you would do anything to win (or not lose), e.g. keep averaging down. I’m sure this sequence of events led to many traders blowing up their accounts. It is pretty interesting that the experiment showed this as a ‘natural expected’ behavior.

As always, trade what you see, not what you think.

Reaction in Your Brain When Your Market View Is Completely Wrong

Eric Barker has a new article (link here) on how to win every argument. The article had a point which made me think whether the same situation happens in trading.

brainSo it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as soon as the people realized that the information contradicted their world view, the parts of the brain that handle reason and logic went dormant, while the parts of the brain that handle hostile attacks – the fight-or-flight response – lit up. Essentially logic gets thrown out the window, and it just becomes a fight where you do anything to win.

A similar situation occurs in trading, when you have a certain expectation of how the market should behave. E.g. you might for various reasons, think that the market will go up. So when the market does not follow what you expect, you might initially make up excuses for it. However when the market continues to go completely in the opposite direction of what you expect, your logic and reasoning centers would shut down, your fight-or-flight response kicks in, you treat it like a hostile attack on you, and you would do anything to win (or not lose), e.g. keep averaging down. I’m sure this sequence of events led to many traders blowing up their accounts. It is pretty interesting that the experiment showed this as a ‘natural expected’ behavior.

As always, trade what you see, not what you think.

Go to top