Skip to main content

The Two Forces That Control Our Decisions

 There are two forces that influence every decision we make:


1. State

Ultimately, we want to feel states of empowerment, like confidence, certainty or adeptness, that will positively impact the quality of our decisions most of the time. Few people are in empowered states all of the time. But even “negative” states of emotion—frustration, anger, envy—can sometimes be useful to propel us to make changes. Being conscious of our moment-to-moment state gives us better control over how we feel, hence control over the quality of decisions we end up making.

2. Blueprint

Our Blueprint is our Model of the World—a specific set of beliefs about how we’re supposed to be, how life’s supposed to be or how other people are supposed to treat us, which determines what we’re even willing to consider doing or not doing. In short, our Blueprint will have a massive impact on the decisions we make both in the short term and in the long term because it colors how we look at our lives 

Blueprint: A Brief Introduction

We experience happiness whenever our Life Conditions (what is actually happening with our career, body, relationships, finances, etc.) align with our Blueprint or Model of the World. Since there is no gap between our expectations and reality in this area, we are happy.


But if there is an area of life that is causing you pain, it’s because your Life Conditions do not match your Blueprint.




Comments

Popular posts from this blog

Maximizing Your Profits with Scoring

SETTING YOUR MAXIMUM INTRADAY TRADING LOSS First things first: set a max intraday trading loss. There will be days when you just do not have it. Why do you think coaches pull their players when they are not playing well? They are more harmful on the field than off. When you are underperforming, you are hurting your team and your trading business. You need a system to yank yourself over to the bench. A stop loss is your answer. TRADING BASED UPON THE TIME OF DAY A good trader makes note of what time of day it is, when he trades most profitably, and adjusts his trading to fit such times. Your numbers at the end of the month will not reflect your true trading potential. Make the most trades with the most size during the trading periods that statistically are most profitable for you. Money saved during your weaker trading periods is money earned. Consistency The fact is that most trades you make will start working for you right away. But the new traders also hold stocks that are trading ag...

CAN A FIRM ALWAYS SPOT THE NEXT GREAT TRADER?

 No. But a prop firm can tell who has a poor chance to become a CPT. To be good at anything will take everything you have. Not having developed the skills to work hard is a turn-off. Trading is a skill learned by doing, not just by reading a lot, theorizing, or the faux art of “paper trading.” THE PROS AND CONS OF RECRUITING EXPERIENCED TRADERS Loyalty is a good thing to a point, but it cannot trump logistics and reality. losing money should really bother you. If I am negative three days in a row, I spend a long evening on my couch with a bottle of red wine and comfort food. As traders, we can all recite the memorable line from Wall Street: “A man looks in the abyss, there is nothing staring back at him. At that moment he discovers his character. That keeps the man out of the abyss.”  Traders don’t talk about how they want to trade, what they want to read about trading, or how they wish they could talk about trading. Traders trade, read about trading, and talk about trading.

Reading the Tape

 Dr. Steenbarger, aka the godfather of modern trading psychology, wrote: “My experience is that an understanding of (and ability to read) order flow is one important factor that separates the older, successful generation of day traders from the newbies who only know simple chart patterns and indicator readings.” continue working on the skill of reading the tape and to sell the stock on the offer when the tape showed weakness. “Reading the tape must be learned through personal experience and long observation.” keep in mind that nothing can top experience. Don’t give up. It is not always this easy to Read the Tape. But there are plays where it really is simple. And reading the tape will offer pattern recognition plays that you can exploit. Overcoming a Confirmation Bias We all fight confirmation bias. But it will harm our performance if we do not overcome it. Let the tape talk to you. And use online vehicles like StockTwits and your peers sitting next to you to gain second ...