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


Cognitive Limits
Updated: Views / Replies:1,290 / 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

Reply
 
Thread Tools Search this Thread
 

Cognitive Limits

  #1 (permalink)
Banned: User requested
 
Futures Experience: Master
Platform: Sierra Chart
Favorite Futures: ES
 
Posts: 135 since Dec 2013
Thanks: 19 given, 127 received

Cognitive Limits

I have discovered something interesting over the last couple years. Have you heard of the research that shows that people that trade with white chart backgrounds are more successful than traders with dark backgrounds? I knew a trader that switched all of his charts to a white based color scheme because of that report. Not sure if it helped him or not.

There is more to it... When I am really tired I can only concentrate on a few things. For me, a rule of three is important. I can only effectively watch three things at once. Price action, one indicator, and price levels. Also, indicators with more than three colors become confusing. Two colors is optimal. I generally go with two colors and sometimes two shades of those colors. Black, white, and gray = Bad! You want the indicator color to deliver the information you need in a glance without looking at precise numbers...

Anyway, the bottom line is... Optimize your colors, clean up your charts... Strip out unnecessary grid lines and etc! Shift the less important things toward more pastel hues and the more important to higher contrast so your eyes naturally focus on what is important!

Here is a trick... Get real tired, then try to read your charts... If you get confused, clean them up a bit. It works for me.

Reply With Quote
The following 5 users say Thank You to MedianVelocity for this post:
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Market Wizard
Sarasota FL
 
Futures Experience: Intermediate
Platform: NinjaTrader, Sierra Chart
Favorite Futures: ES
 
Posts: 3,635 since Jan 2013
Thanks: 26,759 given, 11,115 received
Forum Reputation: Legendary


There's definitely a limit to the number of things I can concentrate on at once -- or apparently, even look at or notice at once, especially if I am trying to weigh them against each other or extract some different information from them.

I think this goes far toward explaining why something looks obvious in hindsight, when looking at a chart on the weekend, but was impossible to see while the market was moving and decisions had to be made; you've only got so much attention to spare at one time, and when things are happening you can't spare very much.

A good argument for simplifying. Thanks for the observation.

Bob.

Reply With Quote
 
  #4 (permalink)
Market Wizard
New Orleans, La (Mardi Gras City)
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: Ninjatrader / Optimus Futures / AmpFutures
Favorite Futures: ES / 6E / 6B / CL
 
DavidHP's Avatar
 
Posts: 1,002 since Aug 2009
Thanks: 803 given, 1,367 received

This article may help.

Keep Your Computer From Destroying Your Eyesight | Gadget Lab | Wired.com

I've always heard that green is the easiest color on the eyes.
Just look at how much of it is in a normal outdoor environment.

Maybe that is the reason it is so abundant in nature.

Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
Reply With Quote
 
  #5 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,388 since Jul 2012
Thanks: 1,139 given, 4,387 received
Forum Reputation: Legendary


MedianVelocity View Post
I have discovered something interesting over the last couple years. Have you heard of the research that shows that people that trade with white chart backgrounds are more successful than traders with dark backgrounds?.

Can you give a link or reference to this?

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
 
  #6 (permalink)
Elite Member
Raleigh,NC
 
Futures Experience: None
Platform: Versatile and Stable
Broker/Data: Reliable and Accurate
Favorite Futures: Money
 
Traderwolf's Avatar
 
Posts: 250 since Feb 2012
Thanks: 154 given, 1,025 received

Colors - Particularly Red

This is not new information, But Denise Shull recommends staying away from Red since it can be linked subconsciously to fear. I have seen no data supporting this nor have validated it personally.

Are You Seeing Too Much Red? - MoneyShow.com

Wolf

Reply With Quote
 
  #7 (permalink)
Elite Member
Philadelphia
 
Futures Experience: None
Platform: corded black telephone
Favorite Futures: ticker tape
 
Itchymoku's Avatar
 
Posts: 2,892 since Apr 2012
Thanks: 1,681 given, 3,622 received

When I trade I do best when I only focus on a couple of things. Once I add more than three things into the mix it becomes too convoluted.

I never heard about the white background concept but I think it may have to do with forcing the person to be more alert since it's bright. Turning up the back light on your monitor may do the same thing. Long term use with a white background may hurt the eyes. I use dim grey which looks like a light grey because I've found it to be the least intrusive color or less distracting of any other color. Green is interesting to use but it just seems to be a bit mucky and sedating. Black gives too much contrast to the candles so it makes trading become overly intense.

Cognitive limits for me are when my mind can't decipher true pattern recognition reflexes from adulterated instincts.


Last edited by Itchymoku; December 24th, 2013 at 09:55 PM.
Reply With Quote
The following 2 users say Thank You to Itchymoku for this post:
 
  #8 (permalink)
Banned: User requested
 
Futures Experience: Master
Platform: Sierra Chart
Favorite Futures: ES
 
Posts: 135 since Dec 2013
Thanks: 19 given, 127 received

I dunno about the red thing. I have actually tested that and not noticed any difference.

As for the white background thing... I'm not sure where he found the research. I never read it myself. I can PM you his email so you can ask him yourself.

I use RGB(210,210,225) for chart backgrounds. It's a light grey with a slight touch of blue. I also set my samsung syncmaster monitors to Warm 2, contrast 65, brightness 25. Very little eyestrain. I look at my screen for twelve hours without problem with this setup.


Here is a interesting article...
color - Why do most financial apps use a black or dark background? - User Experience Stack Exchange

Reply With Quote
 
  #9 (permalink)
Elite Member
United Kingdom
 
Futures Experience: Intermediate
Platform: Multicharts
Favorite Futures: Dow
 
PositiveDeviant's Avatar
 
Posts: 587 since Nov 2010
Thanks: 257 given, 253 received


MedianVelocity View Post
I have discovered something interesting over the last couple years. Have you heard of the research that shows that people that trade with white chart backgrounds are more successful than traders with dark backgrounds? I knew a trader that switched all of his charts to a white based color scheme because of that report. Not sure if it helped him or not.

There is more to it... When I am really tired I can only concentrate on a few things. For me, a rule of three is important. I can only effectively watch three things at once. Price action, one indicator, and price levels. Also, indicators with more than three colors become confusing. Two colors is optimal. I generally go with two colors and sometimes two shades of those colors. Black, white, and gray = Bad! You want the indicator color to deliver the information you need in a glance without looking at precise numbers...

Anyway, the bottom line is... Optimize your colors, clean up your charts... Strip out unnecessary grid lines and etc! Shift the less important things toward more pastel hues and the more important to higher contrast so your eyes naturally focus on what is important!

Here is a trick... Get real tired, then try to read your charts... If you get confused, clean them up a bit. It works for me.

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.

http://www.independent.co.uk/news/uk/politics/first-obama-now-cameron-embraces-nudge-theory-2050127.html

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

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.

"The primary thing required to obtain what you want from life, is simply the will to pursue it, and the faith to believe it is possible." - Author Unknown

"The ability to maintain discipline and stick to the rules is the hallmark of the experienced successful trader" - Curtis Faith

Last edited by PositiveDeviant; December 31st, 2013 at 06:12 PM.
Reply With Quote
The following 2 users say Thank You to PositiveDeviant for this post:
 
  #10 (permalink)
Hyde Park,
Chicago, Illinois
 
Futures Experience: Intermediate
Platform: Tradingview.com
Broker/Data: Optionhouse
Favorite Futures: Options
 
Bermudan Option's Avatar
 
Posts: 467 since May 2011
Thanks: 395 given, 252 received


I remember reading a book back in the day that cited a study about color and our subconscious reaction to it. I think it was How We Know What Isn't So - Thomas Gilovich? Anyways, in the book, the mentioned a study that showed that in sporting events, referee's tend to have a bias against the opposing team and it was tied to the color of their jerseys. Because of human perception (and potentially social conditioning) players wearing darker jerseys had a risk of having a negative bias attached to their actions. For example, in a soccer game, a referee is more likely to see a malicious intent behind a tackle if the opposing team wears darker colors.

Here is the APA paper on the 1988 study actually http://psych.cornell.edu/sites/default/files/Frank%20%26%20Gilo%2088.pdf

I find the theory interesting but personally, when it comes to trading, I think the impact of color in this aspect is minimal. If the color scheme of our trading platform makes us more apt to make mistakes when we are tired, we can change the color scheme or we can simply not trade when we are tired.

I do definitely agree with the removal of excessive data on a chart such as gridlines or tons of Moving Averages.

Reply With Quote

Reply



futures io > > > Cognitive Limits

Thread Tools Search this Thread
Search this Thread:

Advanced Search



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

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Grain futures daily limits Pete Schweaty Commodities Futures Trading 6 July 9th, 2013 03:14 PM
Which futures market fills limits fastest? nourozi Traders Hideout 2 July 8th, 2013 08:30 AM
Government proposes first carbon limits on power plants kbit News and Current Events 0 March 27th, 2012 03:52 PM
Error Message re Charting or DOM limits? TonyB Open E Cry 3 June 28th, 2011 07:46 PM
Why Congress Had to Extend Higher Limits for Mortgages Quick Summary News and Current Events 0 October 1st, 2010 01:30 PM


All times are GMT -4. The time now is 02:12 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
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 2017-12-15 in 0.16 seconds with 19 queries on phoenix via your IP 54.82.56.95