This is a book about the mindset of trading. Conveniently, the author offers her own summary which I’ll paraphrase with some adaptations
- Create physical energy – Don’t trade when you are tired, hungry, etc.
- Read other people – Think about the emotional state of the market. Is it greedy or fearful?
- Get the risk management edge through knowing yourself and how you feel (your emotional contexts) operating at any given moment – journal before you trade to make sure your feelings are explicit.
- Get the strategy edge by using that knowledge of yourself to understand others (their emotional contexts), which they most likely will act out (since they aren’t doing #3)
- Know when to push it because you have emotional capital and psychological leverage.
- Know when not to push it because you are acting out of an emotional context fueled by the past, be it the immediate past (e.g. a fight you just had with your business partner or spouse) or the distant fractal past (e.g. your relatoinship with your mother)
Notes and Quotes
Notes: 1) a lot of people try to be precisely wrong instead of roughy right
Notes: 1) we hurt ourselves by demanding certainty
Last Updated on April 18, 2019 by RipplePop