understanding the trading mind from neuro science and psychaitry

[onlinegtrash]

I want this thread to be a place to discuss about brain from the perspective of science.

We can talk about anything related to brain and behavior but from the perspective of neuro science and psychiatry. We can talk about DNA, genes, brain chemistry, hormones, brain structure, neuro genetics, implications of personality types/disorders in trading etc etc. but kindly preserve popular/motivational quotes and pics for other threads.

I have always believed there is a very strong genetic component to trading success and wanted to explore it more here!

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Recently I was watching an excellent talk on ADHD and ADD (attention deficit disorder):

http://m.youtube.com/watch?v=LyDliT0GZpE

I have been constantly falling off the rails of trading discipline, may be ADD is the culprit!

 

[copypasteaee]

I want this thread to be a place to discuss about brain from the perspective of science.

We can talk about anything related to brain and behavior but from the perspective of neuro science and psychiatry. We can talk about DNA, genes, brain chemistry, hormones, brain structure, neuro genetics, implications of personality types/disorders in trading etc etc. but kindly preserve popular/motivational quotes and pics for other threads.

I have always believed there is a very strong genetic component to trading success and wanted to explore it more here!

------

Recently I was watching an excellent talk on ADHD and ADD (attention deficit disorder):

http://m.youtube.com/watch?v=LyDliT0GZpE

I have been constantly falling off the rails of trading discipline, may be ADD is the culprit!

:clap::clap::clap::clap::clap:

 

[toingpoing]

Very interesting topic!! Lets see what all postings we get! :clap:

 

[TraderRavi]

:clap::clap:

 

[Steve]

Among 5% of trader who are successful, healthy mental fortitude is what accounts for 95% of their success.
Looking forward to a healthy brainy discussion here.

 

[sandip1952]

I have good strategies which, when examined offline seem to return a very high success rate. These were used in automated trading for a limited number of times but they always returned consistent profits. Algo trading could not be continued due to Amibroker limitations, restrictions applied by the exchanges and all that.

So I was forced to go manual again and I know I am not at all cut out for this type of trading. Here again, when I consult my chart and decide my strategy, it seems solid. Yet I lose day after day after day. I simply fail to apply my OWN strategies. When I reexamine my losing trade later, I can see that I have committed the same mistakes I was doing one year back.

I know discipline is even more important than knowledge and technique. So please don't waste your time by advising me to go disciplined.

My questions are:


a)WHAT is the factor responsible for committing the same mistakes for a millionth time knowing well that they would cost money?
b) Am I the only exception?
c)Do I need mental counselling?

 

[manishchan]

I have good strategies which, when examined offline seem to return a very high success rate. These were used in automated trading for a limited number of times but they always returned consistent profits. Algo trading could not be continued due to Amibroker limitations, restrictions applied by the exchanges and all that.

So I was forced to go manual again and I know I am not at all cut out for this type of trading. Here again, when I consult my chart and decide my strategy, it seems solid. Yet I lose day after day after day. I simply fail to apply my OWN strategies. When I reexamine my losing trade later, I can see that I have committed the same mistakes I was doing one year back.

I know discipline is even more important than knowledge and technique. So please don't waste your time by advising me to go disciplined.

My questions are:


a)WHAT is the factor responsible for committing the same mistakes for a millionth time knowing well that they would cost money?
b) Am I the only exception?
c)Do I need mental counselling?

You are not the exception my friend 95% of the traders have this issue.. Needless to say the other 5% are the winners

Go through these 2 posts below.. see what the experts say about this prob

http://www.traderji.com/day-trading/72827-thoughts-day-swing-trading-part-2-a-60.html#post998318

http://www.traderji.com/futures/91950-day-trading-futures-785.html#post998425

 

[sandip1952]

Yes, some good and solid advice in the links! I will try to go by them as much as I can.

 

[Einstein]

Just wondering, how long do you have to be profitable to be termed as a successful trader?? 1 year, 2 years??

 

[TraderRavi]

Just wondering, how long do you have to be profitable to be termed as a successful trader?? 1 year, 2 years??

successful trader is a relative term,
say for example "A" lost money in his first three years then became profitable in next 5 years then lost his edge and again loses in next few years. so loser/winner/loser/winner cycles.
"B"=> few trader over their long trading span(> 10-15 years) remain successful like ST/saint etc, they are real successful traders.
so if a trader is successful in last few years (say 2-3 years) he may belong to either A or B category , but nobody knows for sure , what lies in future.
Jesse Livermore a famous trader died bankrupt(committed suicide).