brett_steenbarger_-_psychology_of_trading

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a dozen reflections on life and markets brett n. steenbarger, ph.d. www.brettsteenbarger.com i've never seen a trader succeed whose explicit or implicit goal was to not lose. the trader who trades to not lose is like the person who lives to avoid death: both become spiritual hypochondriacs. no union was ever destroyed by a failure of romance. it is the loss of respect, not love, which ends a relationship. love, once present, never dies. it must be killed. sometimes we select markets--and trading styles--much as we choose romantic partners: by their ability to validate our deepest-held images of ourselves. our choices generally succeed, for better or for worse. many a trader fears boredom more than loss, thereby experiencing the two in sequence. goodness of character is measured in loyalty to others; greatness of character is measured in loyalty to principle. a measure of the soul: the degree to which the …
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avioral change. his new, co-edited book the art and science of brief therapy is a core curricular text in psychiatry training programs. many of dr. steenbarger’s articles and trading strategies are archived on his website, www.brettsteenbarger.com http://www.brettsteenbarger.com/ http://www.brettsteenbarger.com/ a trader’s self-evaluation checklist brett n. steenbarger, ph.d. 1) what is the quality of your self-talk while trading? is it angry and frustrated; negative and defeated? how much of your self-talk is market strategy focused, and how much is self-focused? is your self-talk constructive, and would you want others to be talking with you that way while you’re trading? 2) what work do you do on yourself and your trading while the market is closed? do you actively identify what you’re doing right and wrong in your trading each day—with specific steps to address both—or does your trading business lack quality control? markets are ever changing; how are you changing with them? …
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se the market is giving you opportunity, or are you placing trades to fulfill needs—for excitement, self-esteem, recognition, etc.—that are not being met in the rest of your life? 9) are you seeking trading success as a part-time trader? would you be seeking success as a surgeon, professional basketball player, or musician by pursuing your work part-time? 10) can you identify the specific edges you possess over the many other motivated, interested traders that fail to achieve success in the markets? do you really have an edge, and—if so—what are you doing to maintain it? brett n. steenbarger, ph.d. is director of trader development for kingstree trading, llc in chicago and clinical associate professor of psychiatry and behavioral sciences at suny upstate medical university in syracuse, ny. he is also an active trader and writes occasional feature articles on market psychology for a variety of publications. the author of the …
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int in time. if the market has been trading within a narrow range and then breaks above that range on high volume, it means that the market is accepting value at higher levels. if you were attending an auction for an artwork that you own and large numbers of bidders kept offering higher prices for the painting, you would conclude that the painting has not yet found its ultimate selling value. you surely wouldn’t sell your art piece as soon as the first group of bidders starts to aggressively bid! the market works on similar auction-based principles (see mind over markets, the excellent book by jim dalton and coauthors for a discussion of auction theory in trading and the use of the market profile). each day, we see an auction for such artworks as the s&p, nasdaq, bonds, etc. the dynamic interplay between buyers and sellers determines value for those …
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amples of "refusing to accept the obvious": 1) a woman comes to counseling complaining of marital problems. her husband has been staying out at night, not spending time with her. he told her he was working late, but she could not reach him at the office. one time she found someone's belongings in his car--a woman's-- and questioned him. he explained that she had forgotten to take them from the car after he dropped her off at home following a late day at the office. when the counselor suggested that perhaps he was having an affair, she expressed anger toward the counselor and insisted that she just needed to "work on the marriage". several weeks later, the husband moved out and moved in with the new woman. 2) a cancer patient has taken a dramatic turn for the worse, and tests confirm massive spread of the cancer. when the physician …

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a dozen reflections on life and markets brett n. steenbarger, ph.d. www.brettsteenbarger.com i've never seen a trader succeed whose explicit or implicit goal was to not lose. the trader who trades to not lose is like the person who lives to avoid death: both become spiritual hypochondriacs. no union was ever destroyed by a failure of romance. it is the loss of respect, not love, which ends a relationship. love, once present, never dies. it must be killed. sometimes we select markets--and trading styles--much as we choose romantic partners: by their ability to validate our deepest-held images of ourselves. our choices generally succeed, for better or for worse. many a trader fears boredom more than loss, thereby experiencing the two …

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