Hello all. I'm a psychologist and a trader, and I can tell you that psychology can help you implement your edge in the marketplace, but it is not your edge. In other words, once you have found a trading methodology that works for you, psychological methods (not necessarily course material) can help you make the most of it. I think, though, it's a fallacy to assume that anyone can make money in the markets if they just keep a level head about them. In my Trader Feed blog (www.traderfeed.blogspot.com), I try to illustrate how psychology is relevant both to the trader and to the markets. When we read order flow and observe differential volume at the market's bid vs offer, we're really tracking the sentiment of the participants who have the ability to move price. The really good short-term traders, I find, think like psychologists even if they haven't taken a single course. In the real time market updates on my blog, that's what I try to help traders do: put the market on the couch and figure out its tendencies. As several people noted earlier, no amount of psychology coursework can accomplish that; only repeated exposure to markets and their patterns. Brett
Hello- I am a psychologist and a trader as well. I have found Brett's research (and his book and papers on the internet) to be extremely helpful. While I will admit that sometimes I think that a PhD in psychology might help me to see the connections that Brett makes between social science (and even neuroscience) research and trading, he is certainly correct in saying that this is not necessary. The key, as Brett has pointed out above, is that most of us need to: 1) Get an edge -This may involve convincing yourself that the edge works -Without confidence in your edge, you are almost certainly doomed 2) Make the most of the edge -This is where the psychology comes into play, you can use techniques to 1) improve your discipline, 2) remove biases, and 3)counter distructive behaviours/habits -Brett's book is an excellent resource for ideas on how to do 1-3 above
note this is an old thread but if anybody interest in free coaching by him, here is your change due to a request the email was removed by the moderator This is due to stop spam...you can reach brett at his website posted below.
Hello Nkhoi, I appreciate your sharing this with the group. I respectfully request, however, that you take my personal email off your post and instead simply have interested parties contact me through the blog. I will receive much unwanted spam once the "spiders" pick up my email from your post (which is why I display it as a graphic image on my site). Thanks so much for your understanding. Brett Brett N. Steenbarger, Ph.D. www.traderfeed.blogspot.com www.brettsteenbarger.com
I was a professional bowler in one of my past lives. I was usually in a bowling center much of every day and had the chance to observe the "regulars".... those who practiced all the time. Few of them ever got to be good because they didn't practice "good technique"... either because they misunderstood what was required or were not physically talented enough to do it. It's similar in trading. You must "practice good technique"... which is what? You need to understand "what" to take a risk on and "why" it should probably work. Then, have discipline to execute the plays well. The psychology comes in where you know why certain plays should work or have historically worked and therefore worth a risk that it will be similar again this time.
As it happens, I am a practicing plant psychologist. Although I specialize in ferns, I have had recent success with a benjamina fichus. You might say that I'm branching out. The objective of a plant psychologist such as myself is to get to the root of the problem since most troublesome symptoms stem from a root cause. Once the problem is addressed and is resolved, we see the green sprout once again, and my client leaves. If this post has planted a seed in your mind, then my work here is done. Just be sure to remain well-grounded, and flexible rather than wooden. No doubt, your career will germinate and grow, since plant psychology is a growth industry. And don't forget to get plenty of rest and adequate sunshine.