Cognitive Limits - Psychology and Money Management | futures io social day trading
futures io futures trading

Cognitive Limits
Updated: Views / Replies:1,393 / 11
Created: by MedianVelocity Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Cognitive Limits

  #11 (permalink)
Hyde Park,
Chicago, Illinois
Futures Experience: Intermediate
Platform: e*trade
Broker/Data: Tradingview
Favorite Futures: Options
Bermudan Option's Avatar
Posts: 484 since May 2011
Thanks: 418 given, 259 received

PositiveDeviant View Post
Is it that the white background promotes easier understanding of the information on the chart?

Or perhaps those people who trade successfully have a greater clarity of thought than others, and prefer white background charts?

There is a lot of interesting research going on right now in the field of behavioural science that shows that people's decision making is subconsciously influenced by contextual and sometimes peripheral cues in ways that are quite surprising.

It's referred to as nudge theory; here's an article about it.

First Obama, now Cameron embraces 'nudge theory' - UK Politics - UK - The Independent

The underlying principles that affect decision making obviously clearly relate to trading.

I liked the article and I am going to look into Nudge theory as a result. Thanks!

With that said, I think that it becomes a slippery slope to imply causations with correlations. Crediting the chart color as a factor in success sounds like the faulty reverse engineering that happens so much in the trading world... the trading theories about Gold vs oil, steel vs country GDP, gold vs silver, etc that 'work' until they don't work.

A very simple example would be if you had two equally able traders, gave one a clean tidy space to work, and the other a messy unkempt desk, which one do you think would perform better?

You can affect your own subconscious mind in positive ways that affect your decision making, having an easy to interpret chart on a white background is a very easy basic example and step to take.

I potentially agree that the person with the cleaner desk might perform better. The problem I have is that everyone looks at the latter portion of the example "messy desk vs clean desk" and no one pays attention to the beginning portion of the sentence, "two equally able traders". If two traders are on the same level, then something as miniscule as changing your screen color or cleaning your desk might 'nudge' someone's talent higher, but only in the right context (both are equally able traders).

Perhaps a better example is the sports world. The difference between the worst team and the best team in college baseball is huge, but the difference between the worst team and the best team in the MLB is much much smaller. This is because everyone's skillset is essentially the same when you reach the professional level, so small edges make a big difference. That is why Sabermetrics (Moneyball) was such a game changer initially in the MLB.

The problem imo lies when people try prescribe small edges to environments where members are not operating efficiently to begin with. For example, basketball shoes have been ergonomically re-designed so that if the same player from 10 years ago used the 2014 edition of his shoes, he will be slightly better. However, the average pre-teen on the JV team that buys those exact same basketball shoes will see little/no return because he still doesn't tuck his elbow in on his jumper, doesn't understand anything about zone defense, and is only 4'11. If you are not a professional, giving yourself a small edge does not negate huge inefficiencies in your strategy.

So to bring this back to trading and wrap it up, until a trader approaches the maximum level of efficiency, this approach does not appear to have the proper context. If someone is a subpar trader, then IMO following 'small-edge' advice will only make them a subpar trader with a clean desk and a white chart background. It is only after efficiency approaches its maximum level that these minor enhancement make a relatively large difference.

Reply With Quote
  #12 (permalink)
Elite Member
Nashville, Tennessee
Futures Experience: Intermediate
Platform: Ninja / Jigsaw / 9G
Broker/Data: AMP / CQG
Favorite Futures: NQ, YM and ES
tderrick's Avatar
Posts: 1,589 since Sep 2010
Thanks: 4,260 given, 2,527 received

I agree that keeping it simple is paramount.

Even though I keep daily , hourly , 30 min, 15 min , 5 min, 6 range charts along with a Jigsaw DOM, I only look
at all of them when I need to get a consensus of Support and Resistance areas.

I keep MA'a and vwap tools on the charts just to keep my mind right with the trend.

The concept of threes is probably correct. Once price arrives at an area scouted out by studying all the
chart levels, I then only focus on PA on the 5 and 15 min charts, and the action on my Jigsaw DOM .
On the DOM I mainly focus on the Volume Profile to select an entry price.

So the closer I get to actually placing an order, the more narrow the focus.

Anything over 3 , I would think something would be missed.

Of course we speak of normal humans here. Genius' excluded.

As for the charts, I used black background for years until I noticed my eyesight was suffering.
I switched to grey background and subtle color shades for all the candles, ma's ,etc, and it has helped.

Nashville, Tennessee

"Life On The Edge of SR"
Reply With Quote


futures io > > > Cognitive Limits

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Wyckoff Hunting for Great Risk/Reward Ratio w/Gary Fullett

Elite only

Digging into the Details of iSystems w/Stage 5 & iSystems

Jun 5

Similar Threads
Thread Thread Starter Forum Replies Last Post
Grain futures daily limits Pete Schweaty Commodities Futures Trading 6 July 9th, 2013 02:14 PM
Which futures market fills limits fastest? nourozi Traders Hideout 2 July 8th, 2013 07:30 AM
Government proposes first carbon limits on power plants kbit News and Current Events 0 March 27th, 2012 02:52 PM
Error Message re Charting or DOM limits? TonyB Open E Cry 3 June 28th, 2011 06:46 PM
Why Congress Had to Extend Higher Limits for Mortgages Quick Summary News and Current Events 0 October 1st, 2010 12:30 PM

All times are GMT -4. The time now is 08:20 AM.

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-05-20 in 0.08 seconds with 19 queries on phoenix via your IP