Flash Crash Psychology

If you enjoy the power of modern motor vehicles, it is tempting to put the pedal to the metal on occasion because the human nervous system is finely attuned to speed and momentum. It feels good. I vividly remember a recent test drive in a Tesla Model S, which delivers...

The Negativity Trap

What is the #1 characteristic of top traders? In Trading in the Zone, Mark Douglas says, simply, “Great traders are not afraid.” I agree, but this definition begs to be expanded. Over my 12 years as a trading coach, I’ve had the fortune to meet and work with some of...

Why Women Make Better Traders

Men, we need to talk. There is a rumor circulating that women make better traders. The jury is still out, but only because there are so few women traders to study. In my 12 years as a daytrading coach, less than 5% of my clients have been female. In fact, one female...

Believing is Seeing

“The human understanding, when it has once adopted an opinion…draws all things else to support and agree with it.”- Francis Bacon One of the most ingrained foibles of human cognition is the tendency to see what we believe. It’s called the confirmation bias. The...

The Wisdom of the Obvious

How do you react to market behavior you are not accustomed to? Or to behavior that you don’t expect because it doesn’t accord with your ideas about how the market should behave? Most traders have difficulty with bracketing our cherished opinions and expectations. This...