Thursday, February 26, 2009
Mental Flexiblity: A ferocious challange
Dr. Steenbarger has written many times about confirmatory biases, seeking information that supports our preconceptions.
My trading has been extremely poor this month and one suspicion I'm entertaining is that my mind is forming biases based on the previous day's session. This could be causing cognitive dissonance.
I went back and looked at each day for the last week of trading. It's sobering to see just how HUGELY different each day is, with many days being exact opposites of the day before!
In our regular lives confirmatory biases are useful. In trading they are deadly
My trading has been extremely poor this month and one suspicion I'm entertaining is that my mind is forming biases based on the previous day's session. This could be causing cognitive dissonance.
I went back and looked at each day for the last week of trading. It's sobering to see just how HUGELY different each day is, with many days being exact opposites of the day before!
In our regular lives confirmatory biases are useful. In trading they are deadly
Wednesday, February 25, 2009
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