Neuroticism and Trading
Of the five traits measured in the Big 5, neuroticism, has the best potential to impact your trading negatively. Those who score high on Neuroticism experience primarily one specific negative…
How’d You Do?
We are half way through 2011 as another quarter has just ended and smart traders are reviewing their prior trades (metrics) and journal entries between back yard barbeques this weekend.…
Risk vs. Uncertainty
Risk: A state of uncertainty where some of the possibilities involve a loss. Uncertainty: The existence of more than one possibility. The "true" outcome is not known. Trading is about…
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…
Discipline key to success
Barclays Wealth has a new report out entitled "Risk and Rules: The Role of Control in Financial Decision Making." This report looks at people and personalities and how they influence…
5 Days
As a therapist, when dealing with adjustment disorders and/or anxiety issues, one of my favorite questions to ask my clients was "what will your life look like in 5 days?"…
Overconfidence versus Knowledge
An inefficient market suggests that the actual trading price differs from the fundamental value of a security. A trader who is overconfident will attempt to exploit every mispriced opportunity they…
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…
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…
Risk On
It's finally nice to see some dip buyers get their assets handed to them. A strategy that has worked well the past six months is not playing out so far…