I watched a webinar on trading psychology / neuro-economics presented by Denise Shull of Trader Psyches on the Mirus website and many of the things she said about the nature of trading and the markets resonated with me.
At the risk of sounding like a science geek, one of the concepts I found most interesting, and what appears to be the basis of the coaching she does, concerns the role that feelings play in decision making, especially risk-based decisions.
In a nutshell, it is scientifically proven that the neural networks responsible for processing risk are also responsible for regulating emotions and social interactions. Contrary to popular opinion, when humans make a risk-based judgement call, they use their “gut” more than their intellect. This basically means, in one of nature’s cruel ironies, that the part of your brain that is responsible for your worst impulse-driven trades is also responsible for your best trading - the times you are trading in the zone.
She also cited a study which showed how experienced traders access the neural networks that deal with Theory of the Mind (ie, what you think other people are thinking) when they are making trading decisions. In other words, these traders are processing the information they see - the charts and numbers - in the form of social interactions with other people. Perhaps this is why many traders ultimately abandon all their indicators and trade off a plain price chart. Consciously or subconsciously, they have realized trading isn’t about numbers, it’s about understanding your opponents in the market - and all you need for that is price action and the tape.
Anyway, this is all by way of asking one question: Has anyone here taken the Trader Psyches Access Your Psychological Capital course and can offer an opinion? I hear snippets of good things about it but no concrete opinions. As it costs a fair chunk of change I thought it prudent to ask before signing up.
Thanks in advance.
For those wanting to watch the webinar. Here t’is.
She has some strong arguments. Price and volume dominate the market. Indicators are much more deceiving. Alot of traders use some form of intenal mind control...a means to conrol their emotions yet still listen to their gut.
lol, so tell me, have you never broken any of your trading rules? Every trade is entered precisely according to plan. Every trade is managed precisely according to plan. There is never any temptation to take profits early. There is never any temptation to move your stop loss just a little bit to give it more room.
We'll just take your word for it since obviously you've never experienced any of the above mumbo jump psychology stuff.
You should probably contact the hedge funds and prop firms who employ full time trading psychologists for some of the best traders on the planet,...let them know they're wasting their time.
You donít trade the markets; you only trade your beliefs about the markets.
- Van K Tharp
Last edited by DarkPoolTrading; August 31st, 2014 at 09:01 AM.
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Haa. Further to @DarkPoolTrading, I believe I can safely conclude you are so unaware of your own 'trading psychology' issues that you do need to do some work on yourself.
Forget 'Thinking Fast and Slow'. That's just another NYT bestseller pop psychology/science book ripping off others' research for a quick easy book. So many of them it shows how dumb our society has gotten.
Ref Denise Shull book. I found it rather boring and uninspiring. Too shallow. Van Tharp has some good books although he has certainly gone off the rails lately and slipped into quasi-religious territory which is sad. The Mindfulness book is all you need really. plus a trading system of course.
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