"I believe
that most left-brain-dominant people
have great difficulty
trusting their intuition.
In these individuals,
the left brain is incharge
and wants explanations.
When the right brain can supply them,
the left brain is satisfied.
In contrast,
if the intuition comes as a feeling,
a vibe,
or a bodily sensation,
left-brain-dominant people have a hard time
giving the intuition any credence.
The left brain wants explanations;
if you can’t supply them,
it won’t believe an intuition.
This lack of trust in your intuition
can be a big impediment
to your ability to improve in your trading."
- Curtis Faith
Showing posts with label intuition. Show all posts
Showing posts with label intuition. Show all posts
Thursday, January 27, 2011
Wednesday, January 26, 2011
importance of risk (words from masters)
"the instinct for avoiding unnecessary risk
can be very powerful.
this is a trait that ensures survival under conditions of danger and uncertainty.
but in trading, avoiding risk will prevent you from becoming a good trader, let alone a master.
traders trade in risk; it’s that simple.
master traders view risk as an important and necessary ingredient in any potential trade.
they know that the very best trades are often
the ones that are hardest for most people to make because of the perceived high risk.
the very fact that a trade is difficult to initiate
makes it less likely that others will also make that particular trade.
the lack of a large number of traders taking a similar position
makes it much easier to make money during the subsequent price movement."
- Curtis Faith
can be very powerful.
this is a trait that ensures survival under conditions of danger and uncertainty.
but in trading, avoiding risk will prevent you from becoming a good trader, let alone a master.
traders trade in risk; it’s that simple.
master traders view risk as an important and necessary ingredient in any potential trade.
they know that the very best trades are often
the ones that are hardest for most people to make because of the perceived high risk.
the very fact that a trade is difficult to initiate
makes it less likely that others will also make that particular trade.
the lack of a large number of traders taking a similar position
makes it much easier to make money during the subsequent price movement."
- Curtis Faith
emotions,inexperience& trained gut (words from masters)
"there is a big difference
between trading emotionally and trading from your gut.
...trading emotionally means reacting to fear and hope, which can destroy your trading decisions.
...trading from your (trained) gut is different.
inexperienced right-brain traders are susceptible to acting on ideas
based on feelings drawn from erroneous principles
because they have not sufficiently trained their right brain in proper trading principles.
they have not yet supplied the right brain
with enough of the raw material required to make proper judgments.
for this reason, the gut reaction of the novice trader will often be wrong."
- Curtis Faith
between trading emotionally and trading from your gut.
...trading emotionally means reacting to fear and hope, which can destroy your trading decisions.
...trading from your (trained) gut is different.
inexperienced right-brain traders are susceptible to acting on ideas
based on feelings drawn from erroneous principles
because they have not sufficiently trained their right brain in proper trading principles.
they have not yet supplied the right brain
with enough of the raw material required to make proper judgments.
for this reason, the gut reaction of the novice trader will often be wrong."
- Curtis Faith
recognizing scalping opportunities (words from masters)
"For extremely short-term trades,
relying on the right brain is often the only practical approach.
Traders simply do not have enough time to perform complicated analysis.
Traders who are scalpers must trade mostly using their right brains.
For longer-term trading, traders have plenty of time for analysis.
The left brain is good at building and understanding models for how the world of trading works,
and the right brain is good at generating ideas
and recognizing opportunities."
- Curtis Faith
relying on the right brain is often the only practical approach.
Traders simply do not have enough time to perform complicated analysis.
Traders who are scalpers must trade mostly using their right brains.
For longer-term trading, traders have plenty of time for analysis.
The left brain is good at building and understanding models for how the world of trading works,
and the right brain is good at generating ideas
and recognizing opportunities."
- Curtis Faith
importance of training intuition (words from masters)
"The experiences you encounter
while trading
train your intuition
so that, in time, you can become an expert.
Learning as a trader can be difficult, however, because of the price of mistakes.
In trading, mistakes cost money.
Fortunately, traders can develop their intuition to a high level of expertise
without having to put their money at risk."
- Curtis Faith
while trading
train your intuition
so that, in time, you can become an expert.
Learning as a trader can be difficult, however, because of the price of mistakes.
In trading, mistakes cost money.
Fortunately, traders can develop their intuition to a high level of expertise
without having to put their money at risk."
- Curtis Faith
library of experiences (words from masters)
"To become a master trader,
to be able to intuitively make good decisions,
you must first gain enough of the right kinds of experience.
This is why doctors and nurses go through extensive training and supervision when they are new to the profession.
It is why firefighters train in fire simulations,
and why airline pilots train in flight simulators.
Through this constant exposure and consistent practice,
experts build up a library of experiences that they can draw upon
when making decisions."
- Curtis Faith
to be able to intuitively make good decisions,
you must first gain enough of the right kinds of experience.
This is why doctors and nurses go through extensive training and supervision when they are new to the profession.
It is why firefighters train in fire simulations,
and why airline pilots train in flight simulators.
Through this constant exposure and consistent practice,
experts build up a library of experiences that they can draw upon
when making decisions."
- Curtis Faith
Monday, January 3, 2011
trading @ the speed of google!
when a doctor
passes out with an MBBS degree
and attends his
first and subsequent patient,
he realises
that a big big big
percentage of what all he has learnt
never comes up for implementation,
never required to be recalled!
a good percentage of theory
never gets used
throughout his career!
so does it mean
that all that he had studied was wastage?
does it mean that all that he learnt and researched and practiced
was not required?
a wastage?
--
similarly
is it true that
a big big percentage of what all a trader studies
in months and years of preparation
to ready himself for trading
is not put to test?
that atleast 90% will never get chance to come up for implementation...
so does it mean that all that "extra" stuff is wastage?
--
well, while i agree that all lessons you learn in 5 years of MBBS
and many years of MS or MD
are not recalled in 10 minutes of diagnosing a patient,
but those years and years of data and training and practice
programs your subconscious!!!
so when it appears that
only 1 or 2 decision logics have gone into
diagnosing the problem
recommending the treatment
and deciding whether there is more to the situation than that meets the eye,
it is actually a split second
super-super analyses
by your right brain
experienced intuition and gut-feeling
developed by lightening fast scanning
of millions of learnings
stored in your psyche!
just like google throws the search result
after scanning a million pages
in 0.01 seconds!!!
--
all that you study
and experience
is always there
at the tip of that decision
consciously or sub-consciously!!!
passes out with an MBBS degree
and attends his
first and subsequent patient,
he realises
that a big big big
percentage of what all he has learnt
never comes up for implementation,
never required to be recalled!
a good percentage of theory
never gets used
throughout his career!
so does it mean
that all that he had studied was wastage?
does it mean that all that he learnt and researched and practiced
was not required?
a wastage?
--
similarly
is it true that
a big big percentage of what all a trader studies
in months and years of preparation
to ready himself for trading
is not put to test?
that atleast 90% will never get chance to come up for implementation...
so does it mean that all that "extra" stuff is wastage?
--
well, while i agree that all lessons you learn in 5 years of MBBS
and many years of MS or MD
are not recalled in 10 minutes of diagnosing a patient,
but those years and years of data and training and practice
programs your subconscious!!!
so when it appears that
only 1 or 2 decision logics have gone into
diagnosing the problem
recommending the treatment
and deciding whether there is more to the situation than that meets the eye,
it is actually a split second
super-super analyses
by your right brain
experienced intuition and gut-feeling
developed by lightening fast scanning
of millions of learnings
stored in your psyche!
just like google throws the search result
after scanning a million pages
in 0.01 seconds!!!
--
all that you study
and experience
is always there
at the tip of that decision
consciously or sub-consciously!!!
Monday, December 27, 2010
did you fall in trade?
how do we choose our life partner?
we fall in love with somebody
we decide to marry
and when parents come into picture
we start looking for reasons
find some good ones!
but the fact is
we are always decided much before
we start thinking!
(probably, that is the reason they call it
FALLING in love!)
--
just like the sales maxim
"customers decide emotionally and justify logically!"
--
similarly,
how do we invest or trade?
we like a stock or situation
we decide to marry (i.e.trade)
and when parents (i.e. logic, left brain) come into picture
we start looking for reasons
and indicators,
find some good ones!
but the fact is
we are always decided much before
we start thinking!
(probably, we should start calling it
FALLING in trade!)
we fall in love with somebody
we decide to marry
and when parents come into picture
we start looking for reasons
find some good ones!
but the fact is
we are always decided much before
we start thinking!
(probably, that is the reason they call it
FALLING in love!)
--
just like the sales maxim
"customers decide emotionally and justify logically!"
--
similarly,
how do we invest or trade?
we like a stock or situation
we decide to marry (i.e.trade)
and when parents (i.e. logic, left brain) come into picture
we start looking for reasons
and indicators,
find some good ones!
but the fact is
we are always decided much before
we start thinking!
(probably, we should start calling it
FALLING in trade!)
Monday, November 15, 2010
Trading with Memory!
Traders are humans.
And all humans have three kinds of memory.
1) sensory memory
2) working memory
3) reference memory
Much of what we see or hear in the market is crap.
Our sensory memory rightly discards much of it hence saving our decision system from overheating or overloading.
Only whatever is noteworthy is passed on by the sensory memory to the working memory "for a closer look".
This includes things which can be potentially threatening or rewarding!
If your working memory "is not impressed" with this shortlisted information, it is dropped.
Otherwise, it is double-checked with the reference memory.
So,what is the use of this all theory?
Simple.
First, Keep your sensory memory free from all clutter.
Don't overload it with a flood of irrelevant market news being pumped by the business channels etc.
Otherwise there is every chance that this highly sensitive and important memory will malfunction.
Important information will either be missed or crap will be passed on to the inner echelons.
Als, too much of hyperactive information flood can create illusion for this sensory barrier resulting in over-reaction or under-reaction.
Second, Keep your Reference memory well stacked with rich knowledge and experience.
This will help it give the right decision and consultation whenever the working memory throws any qualified question!
And in between these two memories (sensory and reference memories) lies the thankless job of the working memory which has to segregate diamonds out of the shortlisted piece of glasses!
Keep it fresh and sincere!
Moral of the story :
Trading is fun but not funny!
And all humans have three kinds of memory.
1) sensory memory
2) working memory
3) reference memory
Much of what we see or hear in the market is crap.
Our sensory memory rightly discards much of it hence saving our decision system from overheating or overloading.
Only whatever is noteworthy is passed on by the sensory memory to the working memory "for a closer look".
This includes things which can be potentially threatening or rewarding!
If your working memory "is not impressed" with this shortlisted information, it is dropped.
Otherwise, it is double-checked with the reference memory.
So,what is the use of this all theory?
Simple.
First, Keep your sensory memory free from all clutter.
Don't overload it with a flood of irrelevant market news being pumped by the business channels etc.
Otherwise there is every chance that this highly sensitive and important memory will malfunction.
Important information will either be missed or crap will be passed on to the inner echelons.
Als, too much of hyperactive information flood can create illusion for this sensory barrier resulting in over-reaction or under-reaction.
Second, Keep your Reference memory well stacked with rich knowledge and experience.
This will help it give the right decision and consultation whenever the working memory throws any qualified question!
And in between these two memories (sensory and reference memories) lies the thankless job of the working memory which has to segregate diamonds out of the shortlisted piece of glasses!
Keep it fresh and sincere!
Moral of the story :
Trading is fun but not funny!
Saturday, October 23, 2010
The Trading Mahabharata
In Mahabharata
Kauravas outnumbered Pandavas by 100 to 5
In trading Mahabharata too
Kauravas outnumber the Pandavas!
The Kauravas are the ones who trade on gut feeling.
Even the Kauravas are of two types
the good ones who trade on gut feeling based on experience
and the bad ones who trade on gut feeling based on rush of blood.
The Pandavas are the ones who trade on the basis of a trading system.
They are in the minority!
The system of Pandavas tells them accurately about the trend of the Kauravas' guts!
Whenever a Pandava is in a dilemma over pulling the trigger as suggested by his system but discouraged by the Kaurava blood in him, Krishna (the trained part of a trader's brain) persuades him to follow his Dharma and enter the trade - leaving the result to him!
In the end, both the good Kauravas as well as the Pandavas go to heaven as both have fulfilled their respective Dharmas by following their respective trading styles.
Hell falls in the lap of the bad Kauravas who forgot their Dharma and followed their lust!
Kauravas outnumbered Pandavas by 100 to 5
In trading Mahabharata too
Kauravas outnumber the Pandavas!
The Kauravas are the ones who trade on gut feeling.
Even the Kauravas are of two types
the good ones who trade on gut feeling based on experience
and the bad ones who trade on gut feeling based on rush of blood.
The Pandavas are the ones who trade on the basis of a trading system.
They are in the minority!
The system of Pandavas tells them accurately about the trend of the Kauravas' guts!
Whenever a Pandava is in a dilemma over pulling the trigger as suggested by his system but discouraged by the Kaurava blood in him, Krishna (the trained part of a trader's brain) persuades him to follow his Dharma and enter the trade - leaving the result to him!
In the end, both the good Kauravas as well as the Pandavas go to heaven as both have fulfilled their respective Dharmas by following their respective trading styles.
Hell falls in the lap of the bad Kauravas who forgot their Dharma and followed their lust!
Wednesday, October 20, 2010
Trading on gut feeling?
There are two types of guts or intuition
One, Intuition and Gut based on experience and training.
Two, Intuition and Gut based on rush of blood.
The first one is an angel
the second one is a devil.
In the words of Curtis Faith
in his masterpiece work
'Trading from Your Gut'
"Relatively recent advances in psychology and neuroscience show that human intuition can indeed serve as the basis for powerful rapid decision making.
Our brains can make decisions using thousands of individual inputs almost instantaneously. This type of rapid parallel processing occurs in our right-brain hemisphere.
Because of the speed of the right brain, it can be a powerful tool in
the hands of an experienced trader."
Same idea is echoed by Malcom Gladwell in his brilliant
'Blink: The Power of Thinking Without Thinking'
One, Intuition and Gut based on experience and training.
Two, Intuition and Gut based on rush of blood.
The first one is an angel
the second one is a devil.
In the words of Curtis Faith
in his masterpiece work
'Trading from Your Gut'
"Relatively recent advances in psychology and neuroscience show that human intuition can indeed serve as the basis for powerful rapid decision making.
Our brains can make decisions using thousands of individual inputs almost instantaneously. This type of rapid parallel processing occurs in our right-brain hemisphere.
Because of the speed of the right brain, it can be a powerful tool in
the hands of an experienced trader."
Same idea is echoed by Malcom Gladwell in his brilliant
'Blink: The Power of Thinking Without Thinking'
Tuesday, October 19, 2010
Time to say "Thank You!"
Who's the most reliable friend of a trader?
The one who always gives the frank, harsh and blunt advise come-what-may!
Whether you like it or not!
Whether you ask for the advice or not!
Whether the advice is sweet or bitter!
The one who is ALWAYS there!
Never leaves you!
The one who always speaks in soft voice!
The one who keeps quite if you ask it to - when you don't like the advise!!!
??????
No,no, it is not the broker
It isn't the software
No, it's not your friend also!
(Though he is priceless!)
It isn't your spouse too!
(Though he/she is God-send!)
It isn't God either!
(You know why!!)
Neither is it the genie in the lamp!
(It doesn't come out any more!)
Nor is it your faithful dog!
(It can feel your pain but can't do anything!)
So, Who's it?
?????
It is the tiny voice inside you!
The little, gentle, shy, super-sensitive angel advisor inside you
who is always there!
She speaks up her mind the moment you think anything!
She always speaks the truth
but only once...
but only gently and softly...
(though always very clearly audible)
doesn't mind if you don't listen!
doesn't mind if you don't take the advice!
doesn't mind if you bulldoze it!
doesn't mind if you ridicule or abuse it!
doesn't pester....
doesn't force....
doesn't make you feel bad when you are hurt by ignoring her whisper!!!
always sits huddled in a corner inside you
loves you more than herself
and doesn't want to see you in any trouble!!
even in trading!!!
Time to caress her!
Time to say "Thank You!"
The one who always gives the frank, harsh and blunt advise come-what-may!
Whether you like it or not!
Whether you ask for the advice or not!
Whether the advice is sweet or bitter!
The one who is ALWAYS there!
Never leaves you!
The one who always speaks in soft voice!
The one who keeps quite if you ask it to - when you don't like the advise!!!
??????
No,no, it is not the broker
It isn't the software
No, it's not your friend also!
(Though he is priceless!)
It isn't your spouse too!
(Though he/she is God-send!)
It isn't God either!
(You know why!!)
Neither is it the genie in the lamp!
(It doesn't come out any more!)
Nor is it your faithful dog!
(It can feel your pain but can't do anything!)
So, Who's it?
?????
It is the tiny voice inside you!
The little, gentle, shy, super-sensitive angel advisor inside you
who is always there!
She speaks up her mind the moment you think anything!
She always speaks the truth
but only once...
but only gently and softly...
(though always very clearly audible)
doesn't mind if you don't listen!
doesn't mind if you don't take the advice!
doesn't mind if you bulldoze it!
doesn't mind if you ridicule or abuse it!
doesn't pester....
doesn't force....
doesn't make you feel bad when you are hurt by ignoring her whisper!!!
always sits huddled in a corner inside you
loves you more than herself
and doesn't want to see you in any trouble!!
even in trading!!!
Time to caress her!
Time to say "Thank You!"
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