Downward spiral

thescalpmaster said:
You need to always look at things in a broader perspective when you're caught up in short term psychological conflicts.

I'm predicting that 100% of you reading this article will get into a downward spiral. You cannot escape from it. So, recognize it when it's at it's early stages and kill it before it becomes a big problem.
More...

There is a problem with the human mind , that the human mind is a poor judge of risk , when emotions of fear or greed are present when assesing risk.

When you are winning , your emotional brain is feeling great and has gone into greed mode , it has forgotten the underlying reality.Unfortunately the amyglada (emotional brain ) is over responsive to fear and greed (flee or fight) .so reality checks are reccomended.
 
java said:
Why would there be emotions of fear or greed when trading? No more than when solving a math puzzle.
More...

There is usually no monetary gain or loss involved is solving a maths puzzle it is often like a crossword. .During trading there are many phsychological functions taking place , along with fear of loss or gain and stress .

You could argue the same happens with solving a maths puzzle , but the psyche issues are not as many , often the time pressure is huge in trading.You also have judgement issues , information processing delusions stress and emotions involved in a trade.


Read about the amyglada and emotions.
Traders trade emotions :They don't trade methods
 
I am very emotionally unstable. I can't even watch old WWII documentaries without wanting to kill all Germans and Japanese and the Italians for good measure. I can have a 10 bet on the over/under and almost have a heart attack. But that is not trading. I don't know what you are talking about, but it has nothing to do with trading. Dealing with boredom or depression maybe. Trading is just a job, and if you are having greed and fear issues it shouldn't have anything to do with anything you put on. Greed and fear are universal, more for some, less for others, but there is nothing trading specific about greed and fear. Have you ever spent a week with a trader or are you just imagining what it must be like?
 
I have fear and greed emotions when I am preparing my taxes, but that is because I am not a professional tax evader and I don't always have a knowledgeable plan. I don't think an hour in the shrinks office will help me with my tax avoidance issues. An expensive couple of hours with the accountant maybe.
 
A little fear and greed can be good. Let's you know you are still alive and probably have enough on. Trade down to just above the sleeping level and trade up to just below the fear and greed level. Anything below sleep is just investing. Anything above greed and fear is just amateur gambling (not to be confused with professional gambling which is what I do.)
 
You must log in or register to reply here.
Back
Top