Even though I have a playbook. I've spent enough time in these streets to have built up an intuition where my playbook doesn't apply. There's your quick-witted experience.
This is all wrong. you need to learn real finance and then use those basics to learn how the world really works. Either you have the street smarts or you don’t.
It's all about incentives and rewards, and the perception of their likelihoods. But I guarantee all that calculus and engineering I learned in the uni did nothing for me in speculation. There is, however, a curious similarity between group psychology and momentum stocks, and inductive momentum, seen in power transformers. Another trading pattern seen regularly, the "spike fade", is just like a capacitor when it's shorted out. And finally, the ever present range is a lot like a capacitor when it's working as designed, in and out, in and out go the little electrons, over and over again!
studying psychology would be a waste. Banks don’t hire psychologists to manage risk for a reason. They do hire engineers and finance people. you use an engineering concept to describe a trading phenomenon.
I think you may be right. The psychology that moves prices and creates horizontal supports, trendlines and pivots is nothing like the stuff they teach in the schools. And unlike the university mind games, you need some money in your account for it to matter, in the markets. You got a good read on me already - everything I see is like an engineering problem. I see the same patterns everywhere!
Yeah, the only applicable psychology that matters in trading is your own and having some understanding of market psychology around buying, selling, fomo, etc..