Monday, January 01, 2007

Trading Psychology and Trader Performance: Selected Posts From 2006, Volume Two

Happy New Year! My previous entry culled through the January-June archives and picked out some of my favorite posts on the topics of trader and market psychology. Here are a few of my favorites from July through September:

* Smooth vs. choppy moves and what they mean: Part one, two;

* What it means when there are lots of bears out there;

* What every short-term trader should know; one of my best posts, IMO;

* Why attacking your trading problems can be a mistake;

* Markets and people are wired differently;

* NYSE TICK and stock market momentum;

* Identifying breakout trades;

* Mean reversion as a trading strategy;

* The need for dynamic thinking in trading;

* What a market's opening minutes tell us;

* A framework for looking at markets, short-term;

* Why it's easy to lose money when trading;

* Trading opening gaps, Part One, Two;

* Life lessons from trading;

* What contributes to trader success?

* Shifts in the NYSE TICK and their significance;

* A very simple psychological test;

* What a lack of discipline can teach us;

* The multiple personality of the stock market;

* Learning how to lose at trading;

* Becoming your own trading coach;

* How people make changes;

* Identifying market reversals;

* Lessons from sport psychology;

* An important psychological skill for traders: Part One, Two;

* Figuring out how much opportunity is in the market;


LifePost said...

Hi Brett,
I was wondering if you have done any studies on the performance of the SP or DJI the last week of the quarter. I don't have software to test it, but it appears the last week there is a bullish shift due to window dressing, which is more noticable in DJI then the SP. Also, I've noticed that the afternoon on friday of the last day of the quarter there is selling pressure. Let me know what you think.

Brett Steenbarger, Ph.D. said...


Thanks for the excellent research ideas. I have looked at performance during the last and first weeks of every month, but haven't broken it down by quarter. I appreciate the addition to my to-do list!!


Anonymous said...

Best wishes for 2007

Brett Steenbarger, Ph.D. said...

Thanks, and Happy New Year to you as well, David--


yinTrader said...

Hi Brett

I wonder if you have come across this new website?


Some facts:
1/ The Market Maps are designed to pinpoint the TIME of the intra-day turns

2/ The Market Maps are based on proprietary time cycle analysis and artificial intelligence

3/ The Market Maps do not give price predictions or price targets

Pin pointing turns especially during releases of non farm payrolls is a useful indicator.

Perhaps, you could add this study on turning points for 2007.

Merci and cheers

Brett Steenbarger, Ph.D. said...

Hi Yin,

Oh heavens. Lots of breathless claims, undisclosed methods, no track record. I don't get it. I just don't get it.


Flatwallet said...

Dr. Brett,

Thank you for this awesome info. You've been a belessing to me and my trading. I really appreciate you doing this for us no matter what you stand or don't stand to gain from this. I wish you a happy new year and I hope that you continue to share your knowledge with us.


Brett Steenbarger, Ph.D. said...

I really appreciate that, Lp. Thanks for the note. I've gained a lot from the interactions via the blog and look forward to more good stuff for 2007!


FX said...

Thanks Doc, for all your fantastic work you've created here.