The Mental Game of Trading: A System for Solving Problems With Greed, Fear, Anger, Confidence, and Discipline by Jared Tendler

Author:Jared Tendler [Tendler, Jared]
Language: eng
Format: epub
Tags: Best Trading Books, Options, Investing Psychology, Trading, Trading Psychology, Sport Psychology, Behavioral Finance, Greed, Fear, Trading Mindset, Trading in the Zone, Day Trading
ISBN: 9781734030914
Google: A4wrzgEACAAJ
Publisher: JT Press
Published: 2021-04-12T23:33:30.001928+00:00

When your actions cause further losses, it’s always harder to swallow. This is especially true when you lose control, despite working hard to increase the size of your edge and understand the randomness in the market and distribution of outcomes. While you have no control over luck or variance, take the time to better understand the reasons why bad variance stirs anger, and you can regain command of your execution.

Believing You Are Unlucky

Look beyond how you think you should react to bad luck and be honest about why you get angry. Do you feel like you don’t get your fair share of good luck, are cursed, or get more bad luck than you deserve? If so, you may have drawn that conclusion from a long-term research project you’ve been unknowingly conducting since you started trading.

The problem is that your research has been compromised by bad data, and thus your conclusions are wrong. You aren’t cursed, you get your share of good luck and not as much bad luck as it seems—you’re just not measuring it correctly.

There are two primary errors that cause faulty coding in this way. First, you attribute your mistakes to bad luck, and second, when you have good luck, you attribute those results to skill. These errors bias the scales of trading justice to make variance seem unfair when it’s not. The next two figures illustrate this point.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.