Archives of “Neuropsychological assessment” tag

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Perceptions in Trading -Anirudh Sethi

  
Analysis, Education
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Image result for PerceptionsPerceptions are a normal part of daily life. It is normal to have a perception of someone, something or a situation, but this perception is often judgmental. One tends to allow feelings, emotions and looks to affect the perception. Despite being a normal and inherent part of human psychology, perceptions can be highly problematic if left uncontrolled in the case of traders.

A trader cannot allow perceptions to cloud his/her judgement and decisions. Perceptions can be deceiving and they thus need to be kept in check as they could lead to erroneous decisions.

In a perfect world, a trader will manage to be completely rational. He/she would be able to assess all facts so as to base decisions and choices on sound information and data. Such a perfect scenario would not allow emotions, perceptions and feelings to come into the picture. As a result the decision making process and the resultant decisions should be ideal. However this is an unreal scenario as we all know that this is not possible in a real world. This is what makes trading psychology so interesting, and yet so complicated and complex. However one should consider this in a positive way as it after all lies at the foundation of why the market and the life of a trader is so challenging and exciting.

The basic idea is to try to keep perceptions under control as much as possible. Despite all efforts though, even seasoned traders may find it hard to be veyr rational at times. One cannot forget that there is tension, pressure, emotion and various other aspects which come into play while a trader is trying to make up his/her mind about the best and the safest course of action. (more…)

Ultimate Goal For All Traders

  
  Education
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In my opinion, this is the ultimate goal for all traders: Get to the point where you can make confident decisions on your own and trade with complete independence. While I tremendously respect the opinion of my colleagues, I DO NOT rely on them. I can turn off Blue Channels, and all communication to the outside world…and still be fine with making my own decisions and letting THE MARKET tell me if I’m right or wrong. I apologize if this sounds cocky, but it’s simply the truth.

How do you get to this point? Make decisions and learn from them! I openly admit that I have made TONS of mistakes in the market, and I still make mistakes EVERY DAY. The key is I’ve learned from them and now try my best to minimize those mistakes. As Tony Robbins says: “Good decisions come from experience, and experience comes from bad decisions.” The key is to MAKE a decision without worrying that you might be wrong. As long as you learn from it, you can correct it the next time. Again, just make the decision! Who knows, it might end up being a good one 

Ten traits of successful people

  
Education, Life
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  1. Positive thinking. They think of success, not failure, regardless of how difficult the situation.
  2. Makes conscious decisions regarding what they’re after, and draw out specific plans to reach their goals.
  3. Action-oriented.
  4. Never stop learning.
  5. Being persistent and hard working.
  6. Analyze details and seek out all the facts.
  7. Focused, doesn’t let other people or things distract them from their goals. Learns to save money.
  8. Being innovative.
  9. Communicate with others effectively
  10. Integrity.

The Trader’s Journey

  
  Education
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  • A grand call to adventure. Who would not want to make a pile of money working from the comfort of your own computer screen?
  • Finding a mentor. Good mentors matter! Few of us who have succeeded would have done so without some help.
  • Crossing over into an “unreal” world. Markets are crazy. When we look deeply into markets, maybe we become a little crazy ourselves, and we certainly become disconnected from ordinary reality.
  • Facing dire challenges. The emotional highs and lows of trading can be extreme. Is there a trader alive who hasn’t been awake at 4am wondering if they can ever do this, why they ever tried in the first place, how they could be so stupid to make the same mistakes over and over, and what they were going to do tomorrow? (This is probably not the time to mention that we only write stories about the heroes that complete the journey! A lot of dragons feasted very well, for a very long time.)
  • Failure somehow, perhaps almost miraculously, is transformed to success.
  • We figure out how to incorporate our trading activities into the everyday world, and discover that things probably weren’t quite as exotic or difficult as we had thought.

See? Trading is not truly about learning patterns. It is not about learning some math. It is not about skill development, and it is not even about risk management. All of these things are important, but the real work of trading is work on ourselves.

3 things that will kill your trading success

  
  Education
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Not having a plan. Get a plan, who cares if it is bad, start with something. You can build off of it and refine it. You have to be willing to spend the time to make the plan yours. You do not start anything without some level of planning. Trading is hard; your brain spends a lot of time in fast forward, affecting your memory. You can slow it down by having a plan and increase your brains ability to remember.

Thinking trading is easy. It is not, there are times when it can be slightly less difficult after a lot of time, patience, and hard work. When I think to myself “this is easy” I lose my sharpness. My focus is adverted from my goal. I will lose. It may not be on that trade but maybe the next.

Thinking you have finished. There is only one thing that every trade is guaranteed to give me: a chance to learn about myself, the market, and the interaction between the two. You have to be willing to be relentless in your learning. It will enable you to learn the cheapest.

Benedict Carey,, How We Learn-Book REVIEW

  
  Education
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Benedict Carey, a science reporter for The New York Times, has written a fast-paced, well-structured book that should have broad appeal. How We Learn: The Surprising Truth About When, Where, and Why It Happens (Random House, forthcoming September 9) not only summarizes a wide range of research findings that challenge traditional views but offers useful tips for both teachers and students.

BENEDICT

For instance, most people do better if they break out of routines—if, for example, they vary their study or practice locations. Distributed study time is more effective than concentrated study time. Mixing multiple skills in a practice session sharpens our grasp of all of them. Forgetting is critical to learning. And sleep—well, we all know the value of sleep to learning and creating.

Of particularly interest to traders may be the chapter entitled “Learning Without Thinking: Harnessing Perceptual Discrimination.”

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