Tuesday, January 02, 2007

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

This will be the final installment in the 2006 review, highlighting favorite posts from the last quarter of 2006. Posts from the first half of 2006 can be found here; posts from the third quarter are here. Tomorrow will start a new year of trading and a new round of blog posts. In general, readers will be able to track links to worthwhile articles and blog posts, market stats, and my daily trading perspectives on my personal site; research on market patterns will continue to be posted here on the TraderFeed site, emphasizing patterns that could affect upcoming trading. My hope is that the sites, together, will help traders in preparing for the coming day's trade. Have a great start to 2007!

* Finding your niche as a trader: one of the important ideas from my recent book.

* Four facets of market psychology.

* Participation in a market move affects the likelihood of continuation vs. reversal.

* What happens in the brain affects how we trade.

* My advice for new traders.

* How personality traits affect trading discipline.

* More observations on life and markets.

* Market patterns are different from our own thinking patterns.

* Tracking how large traders are behaving in real time and why big traders matter.

* The safest times to trade are the most risky.

* Good example of the value of looking at historical trading patterns.

* The importance of trading the right things, not just the right ways--even for daytraders.

* Do gaps tend to fill?

* Why short-term trading has been so different from investing in recent times: the market is really two different markets.

* Becoming your own trading coach: Part one, two, three.

* More on the solution focus in trading.

* Unappreciated problem: addictive trading. Here's a self assessment.

* What you trade should match how you trade.

* Myths in trading psychology.

* Style cube: one way of thinking about *what* you trade.

* Some trading wisdom.

* What we see on charts is not necessarily what we get in the future: perceptual distortions.

* Success takes a lot more than taming emotions.

* A different way to measure market sentiment with relative data.

* Learning how to lose: a key to winning.

* We can learn a lot from the opening minutes of trade.

* Steps we can take to develop ourselves as traders.

* Devon's post: an important principle.


LifePost said...

Hi Dr. S,
I know you are doing research on P/C ratios, and I found an interesting academic article titled "The Information in Option Volume for Future Stock Prices", which looks at put/call volume for equities and indices, with the primary finding being open buys of options (call/put)on equities may be predictive of future price movement, with extra emphasis given when the buy side was initiated by customers of full service brokers as opposed to prop or discount brokers. Here's the link.

Brett Steenbarger, Ph.D. said...

Hi LifePost,

Thanks for that link; sounds very promising--


yinTrader said...

Hi Brett

Now that you have culled the most popular posts for 2006 for us, may I ask if I were to save these in a folder, would I be able to access any article any time?

Otherwise, I would print all these to bind them.

I prefer to read online if they are available for some time.


Brett Steenbarger, Ph.D. said...

Thanks for the question, Yin. I will be keeping the archives up, so you should be able to access the posts at any time.