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Sex appeal and Trading

sexappeal-tradingTrading is marketed as sexy profession. If you are good at trading, well you must be incredibly smart, good looking, funny, and of course, rich! We all know this furthest from truth. Traders are pale, unkept and have bad posture. I kid.
One of the biggest aspects of of trading is psychology, the manipulation and control of our biggest sex organ of all, our brain. However, an often overlooked aspect of trading psychology is mental framing – how we position our thoughts and ideas about the market. (more…)

Examine your assumptions

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Everyone knows we need a good plan to succeed, but what the heck does a good plan entail? In the course of studying how to trade, we begin building assumptions that govern our outlook of what the
market is, and how the market should operate.These assumptions are stitched together by general concepts of technical analysis and stuffed in a little box like a holiday turkey left to bake, the finished product we label a “plan”.

Logically following, if your underlying assumptions are incorrect, your plan will fail no matter how well your analysis. The irony, of course, is that the more disciplined you are in following a bad plan the more money you will lose.

Game Theory:
Majority of traders are taught what trading should entail, but in the market the majority is wrong. It is often said that the market is set up to frustrate the most traders. (more…)

Sex Appeal and Trading

CherrylipsTrading is marketed as sexy profession. If you are good at trading, well you must be incredibly smart, good looking, funny, and of course, rich! We all know this furthest from truth. Traders are pale, unkept and have bad posture. I kid.

One of the biggest aspects of of trading is psychology, the manipulation and control of our biggest sex organ of all, our brain. However, an often overlooked aspect of trading psychology is mental framing – how we position our thoughts and ideas about the market.

Newer traders approach trading from a “right versus wrong” perspective. They devise their trading system based on a false sense of security believing certain setups and strategies can be designed to give them”right” signals and helps them avoid “wrong” signals. (more…)

Psychology Vs. Adaptation

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The biggest question I have here is when do you ‘adapt’ and when do you stick with your trading strategy.

We do not know whether our strategies truly work… how do we know if we have just been ‘lucky’ verses by ‘smart’. (more…)