I have to say that going through more psychology/spirituality articles is opening my eyes.
But first, let's finish the article on the 5 traps in decision making.
http://www.fbi.gov/stats-services/publications/law-enforcement-bulletin/june-2010/good-decisions
" Good decisions : tips and strategies for avoiding psychological traps"
Information Overload
The brain has limitations ( capacity, attention, energy,...).
==> 'plan the trader' makes sense.
The brain processes things in two ways.
First, the implicit one - can process more than 20K pieces of infos/stimulis per seconds, work via pattern recognition, is intuitive.However this part is prone to bias, and no use for completely new and complex problems.
==> 'plan the trader' part recognise that this part is used,
such as "interpreting" the market info.
getting info obviously logical part of brain.
Second, the explicit one - logical, slow, methodical, requires a lot of mental energy. But can process only few amount of infos.
==> 'plan the trader' recognise parts where the logical one has to be dominant ( such as keeping losses small )
So if there are novel, complex or unfamiliar cases, it will be difficult for the conscious mind to operate, leading to analysis paralysis or oversimplification.
Tips to avoid trap:
- understand the 2 ways the brain work
- recognise which brain one is using at each stage of the decision making process
- remember one has strong cognitive bias. Try to use the logical one for careful and systematic analysis.
But first, let's finish the article on the 5 traps in decision making.
http://www.fbi.gov/stats-services/publications/law-enforcement-bulletin/june-2010/good-decisions
" Good decisions : tips and strategies for avoiding psychological traps"
Information Overload
The brain has limitations ( capacity, attention, energy,...).
==> 'plan the trader' makes sense.
The brain processes things in two ways.
First, the implicit one - can process more than 20K pieces of infos/stimulis per seconds, work via pattern recognition, is intuitive.However this part is prone to bias, and no use for completely new and complex problems.
==> 'plan the trader' part recognise that this part is used,
such as "interpreting" the market info.
getting info obviously logical part of brain.
Second, the explicit one - logical, slow, methodical, requires a lot of mental energy. But can process only few amount of infos.
==> 'plan the trader' recognise parts where the logical one has to be dominant ( such as keeping losses small )
So if there are novel, complex or unfamiliar cases, it will be difficult for the conscious mind to operate, leading to analysis paralysis or oversimplification.
Tips to avoid trap:
- understand the 2 ways the brain work
- recognise which brain one is using at each stage of the decision making process
- remember one has strong cognitive bias. Try to use the logical one for careful and systematic analysis.

. Please, even if you loved it, keep the lies between your sheets, or go and see a psy to understand why you love finding escuses.