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Trading Psychology Links: Sustaining a Resilient Mindset

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  Resilience is not the absence of stress, but rather the ability to channel stress toward greater performance.  Here are some worthwhile perspectives on resilience in trading: *  How we learn trading can also be how we learn resilience ; *  Here's an excellent thread from Dr. Steven Goldstein re: how resilience comes from aligning our trading with our personalities; *  Lance Breitstein passes along nuggets of wisdom from James Clear, emphasizing the importance of peace of mind and inner satisfaction toward resilience and performance.  Here's a great thread from James Clear that captures the importance of persistence; *  I find that researching edges in markets leads to greater confidence in trade ideas, which leads to greater resilience during the trade.  Here's a nice example of research from Concretum Research; *  Insightful thread from Richard Moglen on how top traders focus their efforts; *  Mike Bellafiore from SMB Capital tea...

How to Overcome Performance Pressure

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  I'm hearing from more traders than usual about their struggles with performance anxiety.  As one successful developing trader put it, the problem tends to happen "on high profile trades that you could say most traders have an eye on".  This is a very good observation.  The higher profile the trade--i.e., the greater the perceived opportunity--the more room there is for performance pressure.  As Epictetus observes, the issue is not the "real problems" about the trades, but rather the "anxieties" about those trades. Let's look at this from a psychological angle.  The more we perceive--and emphasize--opportunity in a situation, the more room we create for anxiety should we miss out on this opportunity . Imagine shooting a free throw during a basketball practice.  It's routine, you've done it hundreds and hundreds of times, and you feel no pressure.  Now imagine the situation from my old college team.  You've had a long practice after cla...

Where Does Trading Edge Come From?

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  It's been interesting returning from my sabbatical and rejoining the online world of trading.  So much noise, so much noise, and yet there are gems out there.  Kudos to the sharing of original research from Concretum Research .  It is a joy to find social media posts that share ideas and address our highest aspirations to understand and master complex realities. There is an important relationship between trading edge and trading psychology.  Let's explore. Consider three sources of trading edge: 1)  Directional Movement - We find patterns and relationships in markets that lead to the directional trading of an asset.  An example would be a breakout move that results from a news catalyst. 2)  Relative Movement - We find patterns and relationships in the movement of one asset relative to another one.  An example would be the relative value trading of rates, where we might expect the yield curve to steepen due to inflationary pressures in the...