موقع التقني

  Here's a checklist to guide your evaluation of yourself as a trader: 1)  What did I learn from today, and how--specifically--will I bring that lesson to tomorrow's trading? 2)  What do I see in markets that others don't see and what am I seeing uniquely in the market right now? 3)  When is not trading the right decision and how have I utilized my time when I'm not in the market? 4)  What is my pipeline of new trading approaches and ideas that I am developing for the future and how am I working on that today? 5)  What have I learned this week from others and what have I cemented by teaching others? When we do positive things in trading, we grow a positive trading psychology.  When we do positive things in life, we grow a positive psychology . .

  Let's start with the conclusion:  The only path to a successful life is to live a success-full life . I've been reading a number of books summarizing recent research in positive psychology and will sharing the major conclusions in my next book. One conclusion especially stands out:  The various attitudes and activities that lead to a happy and fulfilling life--love and social connections; spirituality; gratitude; physical health; achievement; self-acceptance--all are developed by actively exercising them. If we challenge ourselves in our work, relationships, mindset, and physical development, we can live a life that is successful, because it is success-full. Living life consciously and intentionally takes a hell of a lot more than sitting for a few minutes and doing meditation exercises. Living life purposefully means that we create challenges and goals in every area of life that matters to us.   All of life is a gym. One question matters:  What is today'...

  The first post in this three-part series on positive trading psychology emphasized the emotional and physical side of optimal performance, which has been called flourishing.  The second post looked at the cognitive side of trading success, including the development of focus and deeper, faster processing of information.  In this post, we'll examine the importance of developing a framework for understanding markets and creating our trading edge. In any competitive endeavor, whether it is chess, basketball, or boxing, we have to understand who we are competing against.  Notice that in all these activities, we don't just prepare for success by building ourselves up.  We also study the opposition and their strengths and vulnerabilities.  An important part of preparation for the next game is watching film, studying the opponent, and then formulating strategies and plays that maximize our strengths and take advantage of our opponent's weaknesses.  Because...

On Friday, we saw something unusual.  After the day's steep drop, we finished the day with fewer than 10% of SPX stocks closing above their 3, 5, and 10-day moving averages.  At the same time, by Friday's close, we still saw more than 50% of those shares trading above their 100 and 200-day averages.  Since July of 2006, when I first began collecting these data (over 4400 days), this set of conditions has only occurred 20 times.  In other words, it's been unusual to get a broad short-term decline following a broad longer-term advance.  While 20 instances is not enough for a robust statistical analysis, I do find it noteworthy that 18 of the occurrences finished higher 20 days later for an average gain of +2.66%, substantially above the average for the entire sample.   I've found that such historical queries are useful tools for framing market hypotheses.  If I see evidence of buying going forward and then see that we cannot make fresh lows on subse...

  The first post  in this series on positive trading psychology took a look at flourishing and what we need to do in order to maximize our performance in life and markets.  When we establish flourishing as a personal and professional goal, we move past the preoccupation with our mistakes and instead learn to make the most out of what we do well.   In this post, we explore an area of trading psychology that is underappreciated:  cognitive performance .  Research that I've conducted at multiple trading firms finds that our cognitive strengths--what we do best in processing information--are every bit as important to trading success as our personality strengths .  For example, one of the consistent qualities we see among very successful traders is intellectual curiosity.  Rarely, however, do we see traders actively working on growing the breadth and depth of their interests.   There is much more to trading psychology than "mindset". Esp...

  In the next several posts, I will outline an approach to trading psychology based upon recent research in the field of "positive psychology".  I believe this can be a game-changer for many traders and trading teams. To use the analogy of positive psychology's founding researcher, Dr. Martin Seligman, the goal of positive psychology is not to go from -5 to 0, but to go from +2 to +5 .  This means that feeling good and performing well is not enough.  We are meant to "flourish" by amplifying what is already positive.  According to Dr. Seligman's research, there are five dimensions of flourishing, known by their acronym PERMA: 1)  Positive Emotion 2)  Engagement 3)  Relationships 4)  Meaning 5)  Accomplishments As the Positive Psychology site explains , flourishing is not something we have or don't have.  Rather, it's a process that can wax and wane at various points in our lives. Think about what this means:  We think about trad...