Comments on: Taming of the Trader’s Gremlin(s) http://tradermike.net/2006/10/taming_of_the_traders_gremlins/ Trading, Stocks, Stock Market, Money Mangement & Risk Management Thu, 20 Nov 2008 22:21:00 +0000 http://wordpress.org/?v=2.6.3 By: Michelle B http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4523 Michelle B Thu, 26 Oct 2006 08:04:57 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4523 David, untamed beasts won't even let the trader near any productive tools that could result in improving trading skills. Once the beasts rule the turret, it is the number one priority to tame 'em so the trader can decide what the market is telling him what he needs to learn and do (including perhaps focusing on new tools, indicators) in order to improve his trading skills and thus his edge. But, anyway plug merrily along and, LONG LIVE THE ENTREPENEUR SPIRIT! David, untamed beasts won’t even let the trader near any productive tools that could result in improving trading skills. Once the beasts rule the turret, it is the number one priority to tame ‘em so the trader can decide what the market is telling him what he needs to learn and do (including perhaps focusing on new tools, indicators) in order to improve his trading skills and thus his edge.

But, anyway plug merrily along and, LONG LIVE THE ENTREPENEUR SPIRIT!

]]> By: Michael http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4519 Michael Thu, 26 Oct 2006 01:51:38 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4519 So very shameless David! :o So very shameless David! :o

]]> By: David http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4517 David Thu, 26 Oct 2006 01:13:38 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4517 Tame the beast with knowledge that foreshadows your odds of success with a trade. Knowledge obtained from tools, hard knocks, trading plan - anywhere will also tame the beast. Just as you would rightly name the gremlin to shine a spot light on it, so should you also shine a light on clear hard facts about the trade you are about to take. Is this a valid observation tagged with an obvious plug at the end? Only if you read more about what The Odds Maker can do for you 8-| - <a href="http://www.trade-ideas.com/OddsMaker/" rel="nofollow">Put the Odds in your favor</a> Guards!! Tame the beast with knowledge that foreshadows your odds of success with a trade. Knowledge obtained from tools, hard knocks, trading plan - anywhere will also tame the beast. Just as you would rightly name the gremlin to shine a spot light on it, so should you also shine a light on clear hard facts about the trade you are about to take. Is this a valid observation tagged with an obvious plug at the end? Only if you read more about what The Odds Maker can do for you 8-| - Put the Odds in your favor Guards!!

]]> By: Michelle B http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4505 Michelle B Wed, 25 Oct 2006 06:05:16 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4505 Richard, I am working on it, give me time, there soon will be enough references to M. Faithful to make Mike's refs to R multiples seem limp! (Yes, I am joking!) Richard, I am working on it, give me time, there soon will be enough references to M. Faithful to make Mike’s refs to R multiples seem limp!

(Yes, I am joking!)

]]> By: Richard http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4502 Richard Wed, 25 Oct 2006 02:27:28 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4502 Great post! I just wanted to point out how funny I think it is that the footer invites the reader to read other TraderMike.net articles about <em>Marianne Faithful</em>, and how horrified I'd have been if the search turned up dozens of them! :-) Great post! I just wanted to point out how funny I think it is that the footer invites the reader to read other TraderMike.net articles about Marianne Faithful, and how horrified I’d have been if the search turned up dozens of them! :-)

]]> By: Michelle B http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4494 Michelle B Tue, 24 Oct 2006 14:11:13 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4494 mikeb, thanks for the summary. The internal observer is someone to cultivate. I think that trading does cultivate it. You either run out of time, money, or motivation, or you stick with it because you have developed a strong internal observer. So both the trader and the internal observer get developed together. From observing people around me, I have concluded that people who do not develop an internal observer, often settle into a niche where they just follow what is deemed the status quo, and as long as they are functioning within their niche they are ok, but take them out of it, and they will experience tremendous discomfort. I also have observed others who have such little conflict within, that they seemed to have been born with a well developed internal observer in place! If you can find someone like that, hang out with them, and observe how wonderful it is to function without conflict! mikeb, thanks for the summary. The internal observer is someone to cultivate. I think that trading does cultivate it. You either run out of time, money, or motivation, or you stick with it because you have developed a strong internal observer. So both the trader and the internal observer get developed together.

From observing people around me, I have concluded that people who do not develop an internal observer, often settle into a niche where they just follow what is deemed the status quo, and as long as they are functioning within their niche they are ok, but take them out of it, and they will experience tremendous discomfort.

I also have observed others who have such little conflict within, that they seemed to have been born with a well developed internal observer in place! If you can find someone like that, hang out with them, and observe how wonderful it is to function without conflict!

]]> By: mikeb http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4493 mikeb Tue, 24 Oct 2006 13:57:10 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4493 I recently picked up a copy of Dr. Brett Steenbarger's book "The Psychology of Trading". You post falls in line with one of the chapters I've read thus far. The premise (hopefully Dr. Steenbarger will pardon my poor summary) was that we have multiple facets to our personality. At different times different facets dominate. Sometimes the different facets have conflicting goals, so we find 'ourselves' fighting against 'ourselves'. For instance, one facet may be focused on financial gain while another may need excitement, but they both have access to your trading account! By stepping back and becoming what he refers to as the 'internal observer', we can determine what facet of our personality is currently dominate. This simple act of introspection tends to put one in a more objective mind state. Learning to recognize our own behavioral patterns and to moderate our more impulsive facets is required for success not only in trading but in life. I recently picked up a copy of Dr. Brett Steenbarger’s book “The Psychology of Trading”. You post falls in line with one of the chapters I’ve read thus far.

The premise (hopefully Dr. Steenbarger will pardon my poor summary) was that we have multiple facets to our personality. At different times different facets dominate. Sometimes the different facets have conflicting goals, so we find ‘ourselves’ fighting against ‘ourselves’. For instance, one facet may be focused on financial gain while another may need excitement, but they both have access to your trading account!

By stepping back and becoming what he refers to as the ‘internal observer’, we can determine what facet of our personality is currently dominate. This simple act of introspection tends to put one in a more objective mind state.

Learning to recognize our own behavioral patterns and to moderate our more impulsive facets is required for success not only in trading but in life.

]]> By: Michelle B http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4492 Michelle B Tue, 24 Oct 2006 12:52:21 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4492 John, the context within which traders make decisions is very different in kind from the context within which people make decisions in the course of their regular jobs or routines. Mark Douglas in The Disciplined Trader focuses how this enormous difference is what trips up so many traders. They think just because they are disciplined in their jobs, they can just transfer the same to trading. The skill set that works in the world of regular jobs fails miserably in the world of trading. It sounds like you got the start of a virtuous circle going. John, the context within which traders make decisions is very different in kind from the context within which people make decisions in the course of their regular jobs or routines. Mark Douglas in The Disciplined Trader focuses how this enormous difference is what trips up so many traders. They think just because they are disciplined in their jobs, they can just transfer the same to trading. The skill set that works in the world of regular jobs fails miserably in the world of trading.

It sounds like you got the start of a virtuous circle going.

]]> By: Michelle B http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4491 Michelle B Tue, 24 Oct 2006 12:26:58 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4491 Peter, great comment regarding "trade management" rather than risk management. The virtuous circle of which I often speak, only works if it is tailor made, to fit your personality, risk profile, and capital base. Dr. Brett Steenbarger recently commented how important it is to fit a trading approach to your personality. Peter, great comment regarding “trade management” rather than risk management.

The virtuous circle of which I often speak, only works if it is tailor made, to fit your personality, risk profile, and capital base. Dr. Brett Steenbarger recently commented how important it is to fit a trading approach to your personality.

]]> By: john http://tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4490 john Tue, 24 Oct 2006 12:20:35 +0000 http://www.tradermike.net/2006/10/taming_of_the_traders_gremlins/#comment-4490 Excellent post. The hardest thing we have to do as traders is make a decision and it is amazing that after a lifetime of making decisions that it is still so damn difficult. I have recently started process trading (inventing and following processes was what I did when I was an engineer) and I seem to be doing better. I have had a difficult time understanding that just because I am having fun what I am doing is actually work and it better be treated as such. While following a process makes it seem mechanical in nature a lot of the decisions are removed all you have to manage then is the risk and in this business as in all businesses risk is about the only thing you can really manage and come out ahead. Excellent post. The hardest thing we have to do as traders is make a decision and it is amazing that after a lifetime of making decisions that it is still so damn difficult. I have recently started process trading (inventing and following processes was what I did when I was an engineer) and I seem to be doing better. I have had a difficult time understanding that just because I am having fun what I am doing is actually work and it better be treated as such. While following a process makes it seem mechanical in nature a lot of the decisions are removed all you have to manage then is the risk and in this business as in all businesses risk is about the only thing you can really manage and come out ahead.

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