Category: Psychology

Cognitive Flexibility

Cognitive flexibility is being aware that in any given situation there are options and alternatives available. As an example, you don’t have to stay in a losing position, yet so many traders do just that as their conviction in a trade turns to hope. Cognitive flexibility is a critically important executive function  that occurs, almost

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Are you an instinctual trader?

How would you describe the decision process of your trading? Is it mainly based on technical analysis? Do you incorporate fundamental analysis at all? What about astrology? How much does instinct come into play in your trading decisions? Probably more than you’d like to admit. I’ll post a follow-up to this question later. For now,

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Can You Multitask?

I recently shared some information regarding the dangers of multitasking which led to Allison sending me a link to a multitasking test she helped create. As the test (and numerous research) points out our brains are simply unable to do two things at once. What this test is actually measuring is the TIME it takes

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Working Memory Research

I’ve been conducting research in the area of working memory and want to further that research to find out if there is a relationship between trading success and working memory. I’m seeking 10-20 participants to help me conduct this research. Here’s what’s required of the participants: While the research will help to clarify, my hunch

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Enough!

We all have our ups and downs but it’s those times when the downs appear to lack a bottom that can keep us from being a profitable trader. Just like the recent price action in the markets our psychological capital can see a similar trend. It’s not fun sitting, waiting, watching the swings, second guessing

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The need to be right vs being profitable

One of the hardest lessons I had to learn was that every trade didn’t have to be a winner. In fact, it was OK if I took a loss on a trade as long as it was within my risk parameters  and my winners were allowed to reach their potential. I know that over time

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A Winning Mindset

Before the recent pullback I wanted to gauge sentiment a bit differently by assuming the trader was profitable. With the recent run in  equities it’s hard to believe that someone wouldn’t be up so I presupposed the gains were 35%. Depending on the account size, that’s not a bad start to the year so I

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Board Of Directors

If you’ve hit a rough patch in your trading, it may be time to do a little house cleaning. I’m talking about the influences on your market participation. I thought I’d share an exercise that I do with clients (did a similar exercise as a therapist as well) when they’ve either become stagnant or underperforming

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Taking A Loss

Everybody loses at times, it comes with the territory. Anyone tells you otherwise is blowing smoke. When I first began trading losing was a daily occurrence that eventually led to a loss of self-confidence. After all, a stock can only go up or down so I had a 50/50 chance, right? Not exactly, but you

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