Flying and Trading-----What makes an expert?

The similarities are many, but I think most focus on decision making and 'economy of energy'.....

A great graphic below showing a dogfight, looks like a high volatility day last year!!!!

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(Cunningham should have stayed a pilot however. Maybe a lesson there as well....)

Now off to a great airshow at Salinas today and the Blue Angles!!!!!!
 

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Quote from slacker:

The similarities are many, but I think most focus on decision making and 'economy of energy'.....

A great graphic below showing a dogfight, looks like a high volatility day last year!!!!

attachment.php


(Cunningham should have stayed a pilot however. Maybe a lesson there as well....)

Now off to a great airshow at Salinas today and the Blue Angles!!!!!!

Look like a tick chart to me. :D
 
Quote from LVMises:

The final deciding factor was experience. From musicians to athletes to economists to chess players, those at the very top of their fields typically hit their prime after achieving at least 10,000 hours of practice and experience.

......continued [/B]

The best description of why it may take 10,000 to reach expert status is in "Deep Survival: Who Lives, Who Dies and Why" by Laurence Gonzales.

During a fear reaction, the amygdala in concert with numerous other structures in the brain and body, help to trigger a staggeringly complex sequence of events, all aimed at producing a behavior to promote survival; Freezing in place, for example, followed by running away. When the reaction begins, neural networks are activated, and numerous chemical compounds are released and moved around in the brain and body. The most wellknown amoung them is the so-call adrenaline rush...

It takes time for the pilot or the trader to be so accustomed to his tasks to the extent that the amygdala is not activated. He 'stays' cool under stress and does not become irrational (impulse trading) in his actions.

This is also described in detail in "Sway" and "Irrational Predicatability", and a few other studies on stress.

This is only one reason why paper trading does not work... In one study a test was given to students where they played a video game and got cash points for playing well. Another group of students got points but it was only an informal tally of results, no benefit to the student. They used MRI technology to show that even though the tasks are the same, game play, the brain activity was completely different.... Paper trading does not exercise the part of the brain used with real trading.... Flying is the same as trading in that reactions to stress must be trained to bypass the reptile part of the brain that is only going to freeze, or run away in an attempt to save itself.

Training to stay cool to avoid waking up the reptile monitor takes time. I recommend "Deep Survival" and "Predictably Irrational" for a more detailed discussion...

Anyway, a good lazy weekend discussion topic.
 
Quote from slacker:

The best description of why it may take 10,000 to reach expert status is in "Deep Survival: Who Lives, Who Dies and Why" by Laurence Gonzales.



It takes time for the pilot or the trader to be so accustomed to his tasks to the extent that the amygdala is not activated. He 'stays' cool under stress and does not become irrational (impulse trading) in his actions.

This is also described in detail in "Sway" and "Irrational Predicatability", and a few other studies on stress.

This is only one reason why paper trading does not work... In one study a test was given to students where they played a video game and got cash points for playing well. Another group of students got points but it was only an informal tally of results, no benefit to the student. They used MRI technology to show that even though the tasks are the same, game play, the brain activity was completely different.... Paper trading does not exercise the part of the brain used with real trading.... Flying is the same as trading in that reactions to stress must be trained to bypass the reptile part of the brain that is only going to freeze, or run away in an attempt to save itself.

Training to stay cool to avoid waking up the reptile monitor takes time. I recommend "Deep Survival" and "Predictably Irrational" for a more detailed discussion...

Anyway, a good lazy weekend discussion topic.

That is why people in profession that requires nerve, e.g. being in combat, athletes, gamblers, show performers, entrepreneur, fire fighters, etc have easier time to become a trader.
 
lynx wrote"hours and hours of boredom punctuated by moments of sheer terror".

Funny, that's what an old cop told me about being in law enforcement.:D
 
Old Time mag article:
Science: Portrait of an Ace
Monday, May. 31, 1954

What makes a good jet-fighter pilot? During the Korean war, U.S. Air Force commanders kept wondering why some jet pilots, with the same educational backgrounds and physical qualifications as others, were so outstandingly successful. The brass had good cause to wonder: of the 823 MIG-158 shot down by the Fifth Air Force, well over a third were bagged by an elite handful of 38 jet aces, representing only 5% of all the Air Force fighter pilots who saw combat.

Last week, after a six-month study of 31 jet aces and 62 of their less successful contemporaries, the Air Force's Psychologist E. Paul Torrance shed some light on the top MIG killers. The jet ace's outstanding characteristics: aggressiveness, self-confidence, an almost fanatic devotion to flying. The typical ace was born into a large family, had to cooperate and vie for parental attention with his brothers & sisters, was seldom coddled. As a youngster he played hookey from school or drove cars just to see if it could be done, strove to win at such rough contact sports as football and boxing. Says Torrance: "The jet ace. when a boy, was all boy. He had no time for girls. When he got to a certain age. and felt like going out with girls, he was all man. These guys . . . have a singleness of purpose."

Why did the aggressive youngsters get into flying instead of business or the professions? One typical answer: "Ever since I was a boy. I wanted to be a fighter pilot. It's more than a job; it's a sport." Having won his wings, the ace strove to test his plane and himself, flying faster and higher than was ordered, often bewildering fellow pilots by his single-minded zeal. He repeatedly badgered his superiors to send him to Korea. Once there, he looked for extra tours of duty, unlike his comrades had little fear of being killed in combat. A mission was a personal challenge. Functioning best when allowed some leeway from standard procedure, the ace often spotted MIGs long before his squadron-mates, was always willing to take risks for a shot at the opponent.

Asked what he would do if his wife told him to stop flying, one ace promptly replied: "I would tell her to go to hell." Dedicated as they are the aces are solid family men, many have large families, spend their leisure time playing golf and fishing. Psychologist Torrance sums up: "I have nothing but great admiration for them . . . The jet ace is a man who goes out into life and meets it head on."
It seems like having a kill increases the pilots chance of having another kill.

Or, is the analogy between pilot and trader going too far?

Good video by Gonzales on Survival:
http://bigthink.com/laurencegonzales/laurence-gonzales-on-deep-survival
 
The problem with comparing trading to flying or being a doctor or whatever else is that all these other professions have manuals, textbooks, REAL instructors, that tell you step by step what you should be doing to be successful. Its all in clear, black and white, plain english, no bullshit, no generalizations, no smoke and mirrors.

None of that exists in trading because the people that DO know how to trade will not tell you what they are doing.

Its very secretive. Not like any other profession. No one shows you their tax returns either, I know a pilots is successful because I see his plane in the air and land safely, in trading you don't know anything.


No comparison in my book.

And yes, I've flown on Microsoft flight simulator! :D
 
Quote from ang_99:

None of that exists in trading because the people that DO know how to trade will not tell you what they are doing.

A lot of successful traders will tell you exactly what they're doing. There are no big secrets in trading. Here's what I learned over the past few months from other traders and confirmed it myself through screen time and actual trading:

Follow the trend: Buy on a show of strength, sell on a show of weakness.

Counter the trend: Buy when higher support is established after a capitulation move down; sell when lower resistance is established after a climactic move up.

Join a breakout: Bracket orders outside a low-volume narrow range and let the triggered order place you in the direction of the breakout. (Your stop loss is already in place at the other end.)

These tactics not only work more often than not (giving you that elusive "edge"), they provide you with low-risk stop-loss exits.
 
Quote from NoDoji:

A lot of successful traders will tell you exactly what they're doing. There are no big secrets in trading. Here's what I learned over the past few months from other traders and confirmed it myself through screen time and actual trading:

Follow the trend: Buy on a show of strength, sell on a show of weakness.

Counter the trend: Buy when higher support is established after a capitulation move down; sell when lower resistance is established after a climactic move up.

Join a breakout: Bracket orders outside a low-volume narrow range and let the triggered order place you in the direction of the breakout. (Your stop loss is already in place at the other end.)

These tactics not only work more often than not (giving you that elusive "edge"), they provide you with low-risk stop-loss exits.


Amen NOD

And a Wonderful day to You Ma'am


RN
 
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