Random Rants and Market Ideas
- Thread starter Brandonf
- Start date
Trading the markets takes a lot of nerve. Decisions often need to be made quickly, and if one flinches, one may miss a significant price move, and divert a sound trading plan. Fear and anxiety often are at the root of hesitation. One may fear a loss, fear being wrong, or fear not having an opportunity to exit. The more a trader can control fear and anxiety, the more he or she can avoid the tendency to hesitate. A classic experiment on the study of emotion control provides a solution. One of the best ways to control fear and anxiety is to take an objective and analytic approach to interpreting events.
In the 1960s, Professor Richard Lazarus and colleagues elicited fear in a laboratory setting by showing participants films portraying various stressful situations. They called one of these films the "sub-incision film." In this film, an Australian Stone Age tribe demonstrated a primitive ritual in which crude surgical operations were performed on young men as a rite of passage. Participants watching the film knew these crude incisions were going to be made, but they didn't know exactly when. Physiological measures of fear, such as skin conductance, respiratory functions, and heart rate, were monitored as participants watched the film. As might be expected, levels of fear were highest at the point the incision was made. But fear was also very high while anticipating the fearful event. Anticipation of a stressful event is often associated with fear and anxiety. After the incision, fear immediately decreased. The vantage point that participants used to view the film exerted a powerful influence on emotional experience. By manipulating the soundtrack of the film, and coaching participants on how to cope with watching the incisions, researchers were able to help people manage their emotional reactions. One approach was to "intellectualize" the film. Participants tried to view the film as a scientific documentary in which one removes oneself from the ongoing process and tries to look at the events from a rational and impersonal perspective. A second approach was to try to "think positively." Subjects were told to focus on the positive aspects of the film. For example, the young men in the ritual looked forward to it, and were viewed as having a higher status in the tribe once the ritual was completed. Results showed that taking an objective and intellectual approach was much more effective at controlling emotions than trying to think positively and trying to ignore the negative aspects of the film.
This research study shows how taking an objective approach to trading can reduce fear, and in turn, reduce hesitation. Any way that you can objectify or intellectualize trades will improve your ability to control fear. For example, looking at trades as a percentage of increase or decrease in capital rather than dollar amounts can help greatly. Don't think of the value of the money, and what it can purchase. Look at it as merely objective percentage points of loss or gain. This will help you remain rational and calm. It will help you control your fear, and reduce your tendency to hesitate.
In the 1960s, Professor Richard Lazarus and colleagues elicited fear in a laboratory setting by showing participants films portraying various stressful situations. They called one of these films the "sub-incision film." In this film, an Australian Stone Age tribe demonstrated a primitive ritual in which crude surgical operations were performed on young men as a rite of passage. Participants watching the film knew these crude incisions were going to be made, but they didn't know exactly when. Physiological measures of fear, such as skin conductance, respiratory functions, and heart rate, were monitored as participants watched the film. As might be expected, levels of fear were highest at the point the incision was made. But fear was also very high while anticipating the fearful event. Anticipation of a stressful event is often associated with fear and anxiety. After the incision, fear immediately decreased. The vantage point that participants used to view the film exerted a powerful influence on emotional experience. By manipulating the soundtrack of the film, and coaching participants on how to cope with watching the incisions, researchers were able to help people manage their emotional reactions. One approach was to "intellectualize" the film. Participants tried to view the film as a scientific documentary in which one removes oneself from the ongoing process and tries to look at the events from a rational and impersonal perspective. A second approach was to try to "think positively." Subjects were told to focus on the positive aspects of the film. For example, the young men in the ritual looked forward to it, and were viewed as having a higher status in the tribe once the ritual was completed. Results showed that taking an objective and intellectual approach was much more effective at controlling emotions than trying to think positively and trying to ignore the negative aspects of the film.
This research study shows how taking an objective approach to trading can reduce fear, and in turn, reduce hesitation. Any way that you can objectify or intellectualize trades will improve your ability to control fear. For example, looking at trades as a percentage of increase or decrease in capital rather than dollar amounts can help greatly. Don't think of the value of the money, and what it can purchase. Look at it as merely objective percentage points of loss or gain. This will help you remain rational and calm. It will help you control your fear, and reduce your tendency to hesitate.
Oh come on, go back to your original post, it was so much more nicer.
At any rate, I will restate here what I have said before. If anyone who has been a client of mine will come forward and say that they think what i did for them was not worth what they spent I will pay them $25. In fact, I will do one better than that, ten people just took my most recent mentoring course and paid $1000 for it, if any of them will come onto ET and say that they think they did not get MORE than their money's worth out of that $1000, I will pay them $2500. However, until A SINGLE CLIENT or FORMER of mine comes forward on ET and says I scammed them whatever idiots like you say does not matter. The fact is NOT ONE CLIENT OR FORMER CLIENT OF MINE HAS COME FORWARD TO SAY THAT I SCREWED THEM, EVEN WHEN I HAVE OFFERED TO PAY FOR A BAD TESTIMONIAL.
G'nite.
Brandon
Very important. I've reduced it to the most basic concept: pennies. Regardless of position size, I win or lose X pennies on any given day. Keep a jar of pennies, add to the jar on the winning days, and remove from the jar on losing days. The symbolism is important, and it's an amazingly simple motivator.
Brandon, I'm not sure if it's just my browser or if it's on your end, but the audio drops out at 1 minute 20 seconds on
http://www.brandonfredrickson.com/videos/july8.html
and never returns.
Thanks,
Jay
http://www.brandonfredrickson.com/videos/july8.html
and never returns.
Thanks,
Jay
I checked out your site...didn't really see anything that makes alarm bells go off. As far as price....a service is worth on what people are willing to pay. I did notice the price you got into SIRI... in the world of swing trading...the daily chart of SIRI was screaming at the top of its lungs to be bought on 6/28, which is where i got in. maybe you bought it there also, sold it, and rebought it again. Its one of the things i look at when i visit sites / newsletters, the methodology where someone enters a stock. Anyways....as Pontius Pilate said to the crowd..."I FIND NOTHING WRONG WITH THIS MAN"
You go Brandon!
Look Who's Back
No, not Shady..Just me! On Sunday we flew back to Chicago and then drove to Iowa to spend a few days with our family. On the whole both were great. The Chicago Expo turnout is always fairly low, and this one proved no exception to that general rule. I don't get it becauase in my somewhat biased opinion Chicago is the greatest big city in the country, but what do I know. I have been thinking for some time of buying a condo there and splitting time between Florida and Chicago but Toni seems to have her heart set on Merida, Mexico which is an amazingly gorgeous place. She is likely to win, but I will keep making my case for Chicago and Giordano's Pizza.
On a sad note three of the children we had in living with us as foster kids have been again placed into care. When we signed up to be foster parents we wanted ONE child (no babies) but were also willing to do a sibling group if it was needed. We got that call that there was a 6 year old, 4 1/2 year old and 18 month old and they were having a hard time placing them. They asked if we could take the 6 year old and 4 year old. We tossed it around for about 30 minutes, called them back and said yes..but we really can not do a baby. The DHS folks were simply happy to have a home for Jeff and Lexi so they started to get everything ready. For the next twenty minutes or so we both felt horrible about the situation the baby would be in, so we called DHS back and asked if they could also place the baby with us. They got a waiver together allowing us to have 3 kids, including a baby and so for the next 7 months I had the most meaningful and important job I am ever likely to have. About three months before we moved to Florida Jeff, Lexi and Brandon went back to live with their father and things had seemed to be going well. We had them come down over spring break and took them to Disney World (Lexi punched Captain Hook because he is a dirty scoundrel) and had a great time. We try to stay in touch on a weekly basis with them, but over the last month have not heard anything and calling DHS over the phone did not get us any info, so as we drove through Iowa we stopped at the local office hoping to find a friendly face. Thankfully we did and now we have the info to get in touch with them again which is good, but their situation is one no child should ever have to live through. It does look like this one will be "perminant" so we are trying to see if we can get things worked out to have them here in Florida with us but it might prove difficult between states and whatnot. If that does prove to be the case then we will probably move back to Iowa for some period of time and try to work it out that way. Hopefully it can be worked out with us here because I LOVE Florida. Anyway, if any of you do have the inclination and ability I would strongly urge you to look into foster care. Even to just provide respit, which is just taking a child in for a weekend or a week or whatever if the foster parants need to leave for any reason. There are so many children out there who very much need families to love and care for them, and as I said I think that doing foster care was the most important thing I have ever done in my life. I really do believe that if you touch the life of a child you can change the world, and if you can take a child who has not had a great experiance with live and show them the other side of the coin, not only will it have a huge impact on the child, you will know you have done something great and the feeling is amazing.
Oh, the market! Well its still here. I know so many traders that must think that if they leave for a bit the market will get up and leave. If you are one of them, I assure you it will not! Live your life!
Right now the market might be a little bit ahead of itself on a short term basis, so some resting or basing might be in order. Mid caps continue to provide solid leadership to the upside, and as long as nothing substantial changes that is likely to continue to be the trend.
Of course earnings season just started, so things can and very well may change very quickly! Over the next two weeks that majority of companies will come out with their earnings, giving us a lot of insight into the state of "the market". What these companies say is not nearly as important as what the market says afterwords. It is key to watch the reactions of stocks after they report. As you all probably know by now my key setup is to watch a large gap up on fundamental news. I then want to see this gap hold, base and then breakout again. For a great overview of this review my gaps video at http://www.brandonfredrickson.com/gaps.html It is about 11 minutes long and worth every second.
Looking at the charts right now is not so much as important, IMHO, as it is after earnings. I say this simply because everything in a stock will depend upon what the company says. Right now several stocks are looking good to me. Look for patterns like we see in AAPL. AAPL reported great earnings and revenue after having based and traded lower for most of this quarter. That provides the rest needed to move higher. The soild news provided a big gap up and a fundamental reason for a move. As the stock bases more you will want to look for the break higher and then buy that. Other charts that look similar include CPKI. Additionally watch the entire midcap group (MDY) for opportunities on the buy side.
Brandon
No, not Shady..Just me! On Sunday we flew back to Chicago and then drove to Iowa to spend a few days with our family. On the whole both were great. The Chicago Expo turnout is always fairly low, and this one proved no exception to that general rule. I don't get it becauase in my somewhat biased opinion Chicago is the greatest big city in the country, but what do I know. I have been thinking for some time of buying a condo there and splitting time between Florida and Chicago but Toni seems to have her heart set on Merida, Mexico which is an amazingly gorgeous place. She is likely to win, but I will keep making my case for Chicago and Giordano's Pizza.
On a sad note three of the children we had in living with us as foster kids have been again placed into care. When we signed up to be foster parents we wanted ONE child (no babies) but were also willing to do a sibling group if it was needed. We got that call that there was a 6 year old, 4 1/2 year old and 18 month old and they were having a hard time placing them. They asked if we could take the 6 year old and 4 year old. We tossed it around for about 30 minutes, called them back and said yes..but we really can not do a baby. The DHS folks were simply happy to have a home for Jeff and Lexi so they started to get everything ready. For the next twenty minutes or so we both felt horrible about the situation the baby would be in, so we called DHS back and asked if they could also place the baby with us. They got a waiver together allowing us to have 3 kids, including a baby and so for the next 7 months I had the most meaningful and important job I am ever likely to have. About three months before we moved to Florida Jeff, Lexi and Brandon went back to live with their father and things had seemed to be going well. We had them come down over spring break and took them to Disney World (Lexi punched Captain Hook because he is a dirty scoundrel) and had a great time. We try to stay in touch on a weekly basis with them, but over the last month have not heard anything and calling DHS over the phone did not get us any info, so as we drove through Iowa we stopped at the local office hoping to find a friendly face. Thankfully we did and now we have the info to get in touch with them again which is good, but their situation is one no child should ever have to live through. It does look like this one will be "perminant" so we are trying to see if we can get things worked out to have them here in Florida with us but it might prove difficult between states and whatnot. If that does prove to be the case then we will probably move back to Iowa for some period of time and try to work it out that way. Hopefully it can be worked out with us here because I LOVE Florida. Anyway, if any of you do have the inclination and ability I would strongly urge you to look into foster care. Even to just provide respit, which is just taking a child in for a weekend or a week or whatever if the foster parants need to leave for any reason. There are so many children out there who very much need families to love and care for them, and as I said I think that doing foster care was the most important thing I have ever done in my life. I really do believe that if you touch the life of a child you can change the world, and if you can take a child who has not had a great experiance with live and show them the other side of the coin, not only will it have a huge impact on the child, you will know you have done something great and the feeling is amazing.
Oh, the market! Well its still here. I know so many traders that must think that if they leave for a bit the market will get up and leave. If you are one of them, I assure you it will not! Live your life!
Right now the market might be a little bit ahead of itself on a short term basis, so some resting or basing might be in order. Mid caps continue to provide solid leadership to the upside, and as long as nothing substantial changes that is likely to continue to be the trend.
Of course earnings season just started, so things can and very well may change very quickly! Over the next two weeks that majority of companies will come out with their earnings, giving us a lot of insight into the state of "the market". What these companies say is not nearly as important as what the market says afterwords. It is key to watch the reactions of stocks after they report. As you all probably know by now my key setup is to watch a large gap up on fundamental news. I then want to see this gap hold, base and then breakout again. For a great overview of this review my gaps video at http://www.brandonfredrickson.com/gaps.html It is about 11 minutes long and worth every second.
Looking at the charts right now is not so much as important, IMHO, as it is after earnings. I say this simply because everything in a stock will depend upon what the company says. Right now several stocks are looking good to me. Look for patterns like we see in AAPL. AAPL reported great earnings and revenue after having based and traded lower for most of this quarter. That provides the rest needed to move higher. The soild news provided a big gap up and a fundamental reason for a move. As the stock bases more you will want to look for the break higher and then buy that. Other charts that look similar include CPKI. Additionally watch the entire midcap group (MDY) for opportunities on the buy side.
Brandon
My latest video. http://www.brandonfredrickson.com/videos/chatroom.html
also check out http://www.brandonfredrickson.com/videos/july20.html
This video shows the real long term implications of buy and hold.
Brandon
also check out http://www.brandonfredrickson.com/videos/july20.html
This video shows the real long term implications of buy and hold.
Brandon