Wednesday, February 13, 2008

Trading Psychology and Trader Performance: Selected Posts From 2007 - Volume Four

Thanks for all the warm feedback about the first three installments in this "best of 2007" series. Here is the final set of links, covering the best posts from the year's fourth quarter. Enjoy!

* Here are some steps you can take toward becoming your own trading coach; keys to emotional resilience as a trader; so important: finding your own voice as a trader; a unique coaching perspective; here are three predictors of coaching success; keys to coaching yourself successfully.

* A key question for traders: How do you *know* you have an edge? Also, here's a few things to consider before attempting to trade for your living.

* What distinguishes the best traders: cognitive development; the important role of self-confidence in performance; the important role of self-efficacy;

* Ten trading rules that have served me well over the years; six positive trading behaviors that make for a good report card; solution patterns worth enacting;

* The underappreciated role of regret in trading; four major problem patterns traders face; here are some of the stresses that traders face and a post on how we can prepare for those stresses; how psychological burnout affects traders; understanding anxiety and how it affects trading;

* Very important post on how people make changes; how we experience ourselves affects our success; and our behavioral premises shape our experiences of ourselves;

* The trader as warrior;

* Seven mental traps for traders;

* What to do when you encounter meaningful drawdowns;

* The role of the brain in trading performance


SSK said...

Hello Brett, thanks for the 4th installment! Wonderful material I am sure!.I will study them throughout the week into the weekend. I mentally took a long position from the open based on the supply/demand figures you posted. It was good for 3 or 4 pts! I was still looking to sell the 63's though, and was able to get 6 points from the short @ 61.75. I would like to, over a period of time see how quick a hit I can make at the open with that information you supply. I typically take the first 1.5 pts on the first of two contracts that I enter with, that lowers my risk on the second contract since once I get filled, my stop is 2 points beyond my initial fill. That seems to be working to help me out of a Feb slump. For example then, If I am targeting 5 pts on the second contract, I am only risking .5 pts since I already made 1.5 pts. If i am looking for a quick hit based on supply /demand, like this morning, from the open up to resistance at yesterdays D period high, or the globex high, I might have to adjust that strategy and keep both contracts for a 3 or 4 point move if the situation dictates (only because of obvious resistance). Thank you agian! Best, Steve ~SSK~

SSK said...

Brett, in the article "finding your voice as a trader" I found very germane today especially, as after I read the article, I found my self talk identifying how bad a trader I was for missing a sell at resistance this morning on a retest, right after having made several points! I caught myself, and recorded that feeling and statement in one of my snippet productions, and I felt completely different afterwards, and implemented a decision that I would not have previously engaged, that prevented a 2 point times two contract loss. It changed my whole mindset that quickly! Powerful! It is going to be interesting to play that snippet back latter. I will post the link to it latter when it is uploaded. Also the emotional reslience article is right on. I am going to write on the graph that tracks my preformance with annotations of how I felt during the peaks and valleys, and then a broader view in retrospect how that self talk was neither accurate or desirabe. Thanks, Steve ~SSK~

SSK said...

Just a continuing thought on the previous post, during that event with the missed trade, I remember during stating that It was alright that I missed the trade, etc, etc, but after i was done speaking and paused the video, had those bad thoughts talking to me. That was when I reengaged the video and spoke about it. It is amazing how hard it is and that it is a constant fight to change! That is a good lesson to learn. Steve ~SSK~

SSK said...

Thanks for the points from breif therapy as applied to trading. The three points, being focused with constancy while being doable is quite an accomplishment. I remember when I created the analyzer. That was a several month project, just so that I had a tool for future trading analysis that was tailored to what I thought was important in future trading based on what I was learning at that point, then the web site to create an architecture to facillitate futher learning. Those three points are powerful when you have the ability and tools to gauge your efforts. I noticed that my learning curve accelerated when I was able to follow the articles advise and use video and writing for self expression and analysis. The snippet link I was refering to earlier regarding self talk is
The first series of articles on coaching, resilience, and selftalk are insightfull as always! I look foward to the next set of articles in the next heading. Thank you, Steve ~SSK~

Anatrader said...


I am sure I speak for all as well that your compiling the four Volumes of Selected Posts for 2007 will serve as quick reference resources for us.

As a parting shot: wish to add an interesting aspect of the brain -"Grandma Moses' phenomenon. The unexpected appearance of artistic or musical powers in old age released in frontotemporal dementia especially after a concussion or some damage to the brain.

More can be read from the book by Oliver Sacks - Musicophilia: Tales of Music and the Brain.

Brett Steenbarger, Ph.D. said...

Thanks, Steve; I'm glad the material has been helpful--