Tuesday, June 18, 2013

Trader Psychology

Evaluating our want-to-be psychology expert last week made me want to look back at a few Brett posts to get a flavor of how the two differ.

Our expert on Friday gave up his recipe for success...

So does Brett compare?  Differ?

Who digs deep into the real issues?   And who leans on psychobabble as he's selling his solution for big bucks?

Let's take a look:


Of the many things that struck me, was how Brett brought into the equation  issues outside of trading that ultimately are the real problem.

I personally have struggled with being a habitual contrarian.   And, from what I can tell, I think that most traders struggle with this issue -- which is why Brett highlighted the issue.

The jerk who cut you off on the freeway and then flipped you off is most likely a habitual contrarian when he engages the market.  So is the control freak at work who refuses to listen to another point of view -- despite being in trouble.  He's lost in his bias...

My contrarianism stems from growing up in an abusive household and desperately wanting control.  If I can control things, then the pain will stop.  Pure and simple.  There is no time to DANCE, flow, or think otherwise.  Fear is the dominatrix.

This is the beauty of trading and hanging out with guys like Brett.  We learn about ourselves in ways that most do not.  We get to struggle with our real selves as they reflect back to us while engaging the markets.

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