The New Psychology of Trading

Discussion in 'Psychology' started by Duref Mudgins, May 29, 2008.

  1. Agreed. The only way I use volume, aside from in PissBreak, is to apply an 800 car/minute go/no-go threshold for NQ. Keeps me out of a lot of shitty trades. I do have a bunch of fancy stuff I run in background on volume at tick rates in the vain hope that it will amount to something. I also have an extensive library of code to detect volume "guasians", but I found it to do more harm than good.
     
    #21     May 29, 2008
  2. Not much slips past you TD.
    I believe in californification they are offering counseling to traders who have been indecently assaulted by volume.

    You did'nt hear it from me but ET members will qualify for state assistance in this matter.
    Apparently Arnold is determined to wipe out the volume virus.
    A reliable source told me that it first appeared amongst left handed asian traders with perfect sight.

    What is the world coming to.

    cheers
    f9
     
    #22     May 29, 2008
  3. Of course, the resulting low volume reading will leave some observers unconvinced of his initiative's validity.
     
    #23     May 29, 2008
  4. True true just so true TD and therein lies the danger of the volume virus.
    The more you knock it back the less it appears.

    cheers
    f9
     
    #24     May 29, 2008
  5. Here is an excellent example of PissBreak at work. Like most systems published on ET, it works about half the time. My theory is that a random system with hard algorithmic rules is better than a random intuitive system with no clear rules at all. No offense to anyone who might be reading.
     
    #25     May 29, 2008
  6. As an aside on the need to use emotional colors sparingly in charts, you might have noted in the attachment to the preceding post that we use yellow to denote the time to stand aside, closing all positions and waiting for the next opportunity. We chose yellow because it is the customary color denoting caution, and because we tempt the monkeys away from their screens with ripe bananas. It it their salivatory cue that it is time to take profits and rewards. And it suppresses counter-trend trading, not to mention overtrading.

    That attachment, by the way, fairly represents the system we are considering franchising to zoos with fractious monkey populations, as a way of coalesing them around common goals and funding the primate program. We are thinking of calling it Simian Co-Op Trading.
     
    #26     May 29, 2008
  7. Excellent commentary all

    Have you tried lying the monkeys on their side to remove any vertical bias.
    I believe that Laura is getting excellent results with G.

    anyway just a thought

    cheers
    f9
     
    #27     May 29, 2008
  8. Laura? G? The vertical chart as analogue of the vertical smile?

    What you propose is similar to the belief that price is actually a spiral viewed edge on, the result of a spiral of fear and greed.

    So there would be no more up or down, merely different colors of profit.
     
    #28     May 29, 2008
  9. But enough levity. It is time to address the transformation from the old to the new trading psychology. We have replaced fear and greed with cheer and need. While still a bastion of peculation in Chicago and New York, trading has become democratized with the ever-expanding popularity of systems and communities (one in particular) which provide cheer and satisfy need. Those are the clear functions of the New Trading.

    The New Trader wants to BELONG. To COLLABORATE. To share a common system with others that they can collectively improve. To comfortably cosset themselves in a virtual trading commune, complete with guru, mantra and daily oblations.

    Contrast this with the Old Trader. He does not share. He is paranoid. He is a loner. He does not TRUST. How do you identify an Old Trader? Here is my test. For years a certain acquaintance of mine here has been slyly sidling up to a private correspondent of his, let us call him VEL, for Very Elusive Loner. Trying to tease out of him the secrets of his system. Does he share? "It's very simple." "I make a little money." "I don't have to work."

    The Old Trader is, quite simply, best characterized as a prick who will not help others. The New Trader, on the other hand, is most eager to share and to support the community which cradles him. He knows that there are riches available to all for the simple price of belief.
     
    #29     May 29, 2008
  10. C- kid

    C- kid

    then by all means spread your codes and calls

    live on ET

    I want every undicator codes

    in order to compare with mine and see if I missed something :)
     
    #30     May 29, 2008