Trading psychology resources

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orbit23

Basically looking for any useful trading psychology resources that you can recommend. Doesn't necessarily have to be completely trading related.

My collection so far

I've read a lot from Brett, also from alphamind and listened to some of the podcasts, i've watched some of the Mark Douglas presentations and watched the YT review of the book(didn't actually read the book, but i get it what he means) and also just most recently found that Rande Howell on youtube and i think he is the best to explain the psychology of trading and the theory behind it. Maybe there are more gems like this.

Anyways, i am sure there are a lot more resources, but i am looking if you have any personal recommendations for trading psychology.

Not sure there is much new to find out, but it's fine for me if it overlaps. The more confluence, from as many independent resources just means that there must be something to it. (same as with charts hehe)
 
Books on Behaviour Finance / Cognitive Decision Making / Cognitive Biases

Unfortunately, most retail traders do not believe in the importance of psychology. Therefore, they will trade and prefer to tweak and change their trade method instead of dealing with the real problems that's sabotaging their trading regardless if its due to something occurring in their personal life or something to do with their mind...how it interacts with the markets.

It's a behaviour enforced by other members in the recommendations to the trader via encouraging the trader to try a new tweak, change to a new strategy, automate the strategy, get mentoring and so on.
More...

wrbtrader
 
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orbit23 said:
Yepp.. If we all see the same things(charts), the true edge is found elsewhere(mind).
More...

Bias and fallacies are kind of innate.
I recall Daniel Kahneman telling you won’t fix it.
You can only become aware of these “imperfections”.

The best you can do is ...
Make the good easier and the bad harder.

What people can do is they can recognize situations or circumstances under which they are likely to be biased and then they should suspect their own judgment, but that is very difficult to do.
- Daniel Kahneman

Belief is Experience.
You either adapt from failures or not.

I don’t believe that the answer is psychological.
It’s more a behavioral routine, habits, self reinforcement.

Beautiful minds see what others don’t.
But you can be both right and getting broke.

A mathematician is a person who can find analogies between theorems; a better mathematician is one who can see analogies between proofs and the best mathematician can notice analogies between theories. One can imagine that the ultimate mathematician is one who can see analogies between analogies.
-Stefan Banach

The edge is elsewhere my friend,
Stupid & Mindless can make good money trading.

I'd rather be dumb and antifragile than extremely smart and fragile, any time.
- Nassim Taleb

It’s definitely not an IQ nor a “rational” venture.
Give a bot stupid algorithms, it will blow up.
Give a turtle a nice plan, it will succeed.

But resources wise ...
Daniel Kahneman’s works.
Jesse Livermore’s tales.
Farnam Street’s blog.

Just avoid avoidable mistakes.
Through practice and feedbacks.
 
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Ever heard that saying 'Beating a drum in search of a fugitive'? I got that from Alan Watts. My interpretation of it is that you never find the thing you are pursuing by being proactive and determined. One of the most important personal abilities required of trading is patience.
A book can tell you that and you only need to hear it once. But a book can't make you patient. Neither will you find patience by consuming more and more knowledge about it. You must go in completely the opposite direction. You should be able to just sit and watch and feel all the urges to trade or exit early or enter without a plan etc.. generally you must feel the monkey but not be the monkey. A book can't give you this. You don't need a book.

You just need to listen.
 
Take the saying "Buy when there's blood on the street" and yet, no one buys. Why?
Easier said than done because at that moment when the market is collapsing you have a strong bias and extreme opinions that stop you from taking actions. All the promises you made and yet could not pull the trigger.
When things are extreme, we develop very strong biases.

Our mind is complex, and we do not have a measure of fear, greed, and hope.
Understanding each one of our actions is very though or merely impossible.

Focus on strategy development, backtest it, and let future take its hold.
If discipline is not in your DNA, you can have a trading psychology library at home, and it will not move the dial in your actions.
 
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Theoretical knowledge is what helps you understand your fallibilities, tendancies, destructive behavior etc... So you can be better aware of it when needed and put yourself into a proper mindset.

Yeah, a profitable strategy is a prerequisite. But once you have that, without proper execution, you've done shit.

Was watching a random youtube video of live trading and the guy said "I don't want to buy here, but i have to". Maybe stupid, but for some reason it just sticks so well with me... It's so simple, yet it takes you and ones ego out of the question, allowing for the strategy to be executed properly.
 
When you have a plumbing problem,
You don’t go through all the theoretical knowledge.

You know ...
The chemistry of water,
The physics of copper and zinc.

You’re looking for a problem,
Definitely not for a solution.

Keep things down to earth.
“I clicked while I shouldn’t have”
No need to find answer into “Cognitive Science”.

Man .. it’s a stupid click.
“Yeah but it’s a space odyssey cognitive quantum Decoherence“

Just don’t do it again.
“I Need to decode the DNA sequence and find an anomaly there”

Face Palm

Most of the Psychology isn’t Science by the way.
 
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Grantx said:
....
A book can tell you that and you only need to hear it once. But a book can't make you patient. Neither will you find patience by consuming more and more knowledge about it. You must go in completely the opposite direction. You should be able to just sit and watch and feel all the urges to trade or exit early or enter without a plan etc.. generally you must feel the monkey but not be the monkey. A book can't give you this. You don't need a book.

You just need to listen.
More...
That especially.
 
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