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TraderFeed - Brett Steenbarger, Ph.D.

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I see it a bit differently.

If there's even a slight element of discretion (which is the case for most traders), decision making will play a part in choosing exactly when and which signals to take. It's my experience that one's mindset will find a match in the real world, because it craves consistency. In other words, one will be strongly attracted to those stocks which confirm one's beliefs and feelings relating to trading/money/worthiness etc. TLDR; if you feel ****, you trade ****.

Releasing negative emotions is done by observing them from a 'higher' perspective. So, change the way you feel (by whatever means necessary), and from there, observe the mistakes and the feelings they create. The idea is to ovewrite the 0s with 1s, not have a mind divided.
 

A quote from the above link:

When we feel joy and gratitude, we focus on what we've done well; when we feel pain, we focus on how we've fallen short of our ideals. Both states of mind cement our perceptions and help them stand out from routine. We change via powerful emotional experiences, not simply by writing things in journal and talking them aloud.

What he [Steenbarger] is actually talking about is 'attribution'.

The problem of course is we as humans are very poor at correctly attributing events and our part in them. A few picks of stocks that go straight up and we are the next Buffett, rather than it was a bull market and we were lucky. Stocks go straight down, we were very unlucky, if only that director hadn't committed fraud.....blah, blah, blah.

If, and it is a big if, you can learn from pain, or pleasure, to attribute correctly, then you are definitely moving forward.

There is no mention by Steenbarger in this post of that quality. If you want to read and implement psychology, Kahneman is streets ahead of Steenbarger.

jog on
duc
 
ducati916 said:
What he [Steenbarger] is actually talking about is 'attribution'.
Click to expand...

Here you go folks this is the definition for Attribution in relation to Kahneman...

Attribute substitution, also known as Substitution bias, is a psychological process thought to underlie a number of cognitive biases and perceptual illusions. It occurs when an individual has to make a judgment (of a target attribute) that is computationally complex, and instead substitutes a more easily calculated heuristic attribute.[1] This substitution is thought of as taking place in the automatic intuitive judgment system, rather than the more self-aware reflective system. Hence, when someone tries to answer a difficult question, they may actually answer a related but different question, without realizing that a substitution has taken place.[2] This explains why individuals can be unaware of their own biases, and why biases persist even when the subject is made aware of them. It also explains why human judgments often fail to show regression toward the mean.[3]

The theory of attribute substitution unifies a number of separate explanations of reasoning errors in terms of cognitive heuristics.[1] In turn, the theory is subsumed by an effort-reduction framework proposed by Anuj K. Shah and Daniel M. Oppenheimer, which states that people use a variety of techniques to reduce the effort of making decisions.[4]

Hope that has clarified it all for you folks!

Pain and pleasure works for me!

ducati916 said:
There is no mention by Steenbarger in this post of that quality. If you want to read and implement psychology, Kahneman is streets ahead of Steenbarger.
Click to expand...

Why not start and maintain a thread for Kahneman duc if boredom doesn't paralyze you!
We can't have too much of positive, professional advice from those who have a focus in this area.
There will be wee nuggets of gold for everyone if we look hard enough.
 
http://traderfeed.blogspot.com/2019/05/trading-psychology-techniques-1-keeping.html
Trading Psychology Techniques - 1: Keeping a Trading Journal

The focus of this post is on the proper construction and use of trading journals. Several evidence-based approaches to psychological change make substantial use of journaling, including cognitive therapy. Like many cognitive-behavioral methods, journaling can improve our self-awareness, making us more mindful both of what we are doing well and what needs improvement.
 
B Hell - why doesn't someone just send him an email?
*Steenbarger)
 

Trading Psychology Techniques - 3: Managing Your Energy

".....Energy is one of four key components of positive emotional experience. The other three are happiness (doing what we enjoy); fulfillment (doing what we find meaningful); and relationships (doing things that bond us to those we care about). It is difficult to imagine experiencing well-being without a good measure of energy and enthusiasm. Indeed, research suggests that we are most likely to succeed at work and experience good health if we enjoy a high degree of well-being." More....
 

Definitely. And your energy will determine exactly which information and resources you will be able to access.

If you want to trade well or code some amazing new system, you must first lift your energy. Get into more pleasant surroundings, exercise, get a coffee....whatever it takes before you start.
 
Trading Psychology Techniques - 4: Developing Your Morning Routine

I have consistently found, personally as well as in my work with others, that how we live our mornings sets the tone for the entire day. I've equally observed that how we start our mornings sets the tone for the entire morning. In life, as on the racetrack, getting off to a good start does not guarantee a win, but getting off to a bad start puts the winning odds against you.

This is what Steenbarger was listening to as he wrote this post.
 
Every day I'm stunned by how emotion dictates success and failure way above and beyond process.

The very simplest of coding problems is impossible to solve when in a grumpy mood. Mood dictates ability, in coding, in sport, in every single thing. That's because mood is generated by subconscious beliefs. If the belief is negative, so outer aspects of life must follow. That's not to say that positive thinking will fix this issue. Positive thinking is not just a waste of time, but harmful.
 

Trading Psychology Techniques - 5: Relationships

An important theme of my recent Forbes article is that what we do in life becomes internalized. Our actions shape our identities. Can we live undisciplined lives and become disciplined traders? Can we look at the same information as everyone else and generate unique ideas and returns? Can we remain self-focused and self-absorbed and sustain close relationships with others? What we do becomes who we are. More...
 
Trading Psychology Techniques - 6: Building Self-Awareness

....Self-awareness is the capacity to think about our thinking and reflect on our actions before we react to situations. The self-aware trader stands back from his or her reactions, notices his or her thoughts and feelings, observes the tendency to act upon these, and then steps back to decide the best course of action. More..
 

There's a real art and skill in processing fears properly. Courage is only a small element - not as important as peole might imagine. In fact, if a huge degree of courage is required, then you're doing it incorrectly*. The key is in the infusing of present moment awareness. Let the fear and the present moment interact. A natural opening up between left and right brain ensues without any effort.

*Or you may have a major, unprocessed trauma, but that's less likely a factor with trading-related fears.
 
I can never quite understand people being fearful of purchasing something on the markets. Perhaps they need more time going to the supermarket. Sometimes you buy something on special and win, sometimes you buy something and it goes on special next week, you lose.

I bought two cars at Christmas time while the deals were good/excellent, one new, one twelve months old. I know for a fact the moment we drove out of the lot I lost a ship load of money and will never see it again and it will continue to fall over time. Was/am I feeling fear? No!

I just don't understand market fear. I can appreciate fear for a novice while they are feeling their way but that should only take a few trades. Anyway, I like this next post, I love to review my own trades, I learn so much from them and the exercise.
 
Three Key Mistakes Traders Make In Evaluating Their Trading

Ongoing evaluation of our trading enables us to learn from experience and guide ourselves toward improvements. We cannot change what we do not observe and measure. Successful traders study themselves--and their performance--every bit as diligently as they study markets. More..
 
Trading Psychology Techniques - 8: Overcoming Frustration

The last post in this series focused on ways of overcoming our trading fears. Many times, it is frustration that can take a trader out of the zone and disrupt trading plans, including risk management. When trades don't work out--or when we miss good opportunities--there is plenty of room for anger and frustration. Frustration occurs when we have a strong set of desires or needs and those are thwarted. Getting stuck in a traffic jam when we have to make an appointment is a great example.

There are two types of methods that can help us overcome frustration: More...
 
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