Richard Moglen: Trading Mindset and Psychology | Interview with Anne-Marie Baiynd

The work is hard but entirely worth it.

Three steps forward and two steps back.

Knowing it gives a little bit of leg up but it’s all about stepping back and saying
i know this is baias but what am i using to make those anchors. Cognitive bias.

Can we find the anchors that are helping us make bad decisions and learn to unhook
them and create new anchors to make better decisions.

In the area of psychology, it’s a well known fact that you can predict what a crowd
can do with much higher reliability than you can predict what an individual can do.

Crowds will be far more realible to gauge than individuals.

What are your common mistakes early on?

⁃ I did not mage risk very well. I did not know how to look at chart.
⁃ System hopping.
⁃ Continually search for holy grail.

Risk:
⁃ When you make a rule, make sure that you obey it.
⁃ The only person to ultimately accountable is us.

Daniel Kahnmen’s thinking fast and slow (book)

⁃ we have to realize that we tend to give ourselves much more leeway in
terms of when we’re wrong that a system or a system is wrong we have no tolerance
for it. (We need to hold ourselves more accountable and we need to let techncial
strategies have alittle bit of wiggle room and not be perfect). When we have rules,
we need to follow them.
⁃ Our mind has a tendency to remember exceptions rather than the rule. We
have a tendency to pick out people that look different in the crowd.

Chaos theory - listen the underlying is a grand program of immense complexity but
if we find it we’ll be able to tell next.

Trading for a living is very hard but incredibly rewarding.

Money is never a good reason to do something because you’ll make the wrong
decisions if you’re just chasing cash. Money has a tendency to warp our sense of
balance.

I had to learn how to make myself truly accountable to process and the results will
follow.

How do we repeat things?

We repeat things if they are straightforward and we can learn a pattern and go one
two three four.

Trading is a decision to move has to made before the move knowing the risk.

One of the human frailties is our fear of being left out/FOMO.

It’s okay to miss out just so long as i know when i’m getting in, i’ve set all my
rules and those rules are attractive to me in terms of risk.

I notice that novice traders run out of money before they learn to trade because of
the ability to manage risk.
You should always have your steps defined before the market open and all just about
executing the plan, position sizing, stop loss etc.

Many of us don’t trust ourselves.

If you trade 5 minute candle, wait until the end of that candle until you enter
that trade.

Outside stressors will impact everything that we do. It’s about how much mental
strength that we’ve developed.

You must possitively affect your brain chemistry so you can move against the
battering ram that is the market.
A lot of people say that a good trades will take care of themselves you just focus
on the bad ones. When you are focus on the bad ones all you are doing is repeating
the worst events over and over again. You go to the good ones and learn to
positively affect your brain chemistry.

Practice makes permanent.