The Psychology of Trading: Tools and Techniques for Minding the Markets
Behavior is patterned. Beginning with this premise, noted clinical
psychologist and active trader Dr. Brett Steenbarger opens the therapist?s door,
demonstrating how traders can identify, interrupt, and change the problem
patterns that interfere with successful trading. In The Psychology of Trading,
Dr. Steenbarger draws upon real-life case studies and offers hands-on techniques
for emotional change to assist traders in becoming their own therapists. Themes
that set The Psychology of Trading apart include:
*"Trading from the couch" by utilizing emotions as valuable market data
* Identifying and building solution patterns that capture hidden trading expertise
* Techniques for assessing and trading against the emotions of market participants
* Methods for building focus and concentration for more automatic and trustworthy trading decisions
* Creating shifts in states of consciousness to rapidly exit anxious, impulsive, depressed, and guilty frames of mind
In an engaging manner that provides practical solutions to real trading problems, Dr. Steenbarger walks you through the most common cognitive and emotional tendencies that distort efforts at identifying and trading market patterns. He then describes specific skills derived from years of brief therapy practice to help you become an effective observer of these tendencies and gain control over them. By blending state-of-the-art research from psychology and cognitive neuroscience with detailed case studies, The Psychology of Trading provides you with the intellectual and emotional ammunition to face yourself and transform your approach to risk and reward.
Table of Contents
Chapter One: The Woman Who Could Not Love.
Manufacturing Cars and Success.
Sue, the Survivor.
Finding Solutions amidst Problems.
Accelerating Change by Doing What Comes Unnaturally.
Going against the Flow with Sue.
The Fearless Trading Inventory.
An Inventory of Solutions.
Enacting the Solutions.
Chapter Two: The Student Who Wouldn't Study.
Ken, the Failure.
Diversification in Life and Markets.
The Psychology of Paralysis.
Decisions and Uncertainty.
Altering the Risk-Reward Equation.
Shifting Risks and Rewards in Trading.
Music, Moods, and Pivot Chords.
Tom's Pivot Chord.
Breaking the Routines of Trading.
Chapter Three: The Woolworth Man.
The Interview from Hell.
Invoking the Internal Observer.
Taking Your Emotional Temperature.
Inoculating Yourself against Stress.
Effort and Emotional Change.
The Trader as Addict: Breaking Stops.
Becoming More Rule-Governed in Trading.
Using Emotion to Make the Contrary Move.
Chapter Four: Traders Out of Their Minds.
The World's Most Powerful Glasses.
Phil, the Addicted Trader.
Exploring the Dual Mind.
The Mind of the Trader.
Solution-Focused Money Management.
A Trade from the Couch.
Shifting Selves in Trading.
Stationarity and the Moods of the Markets.
Chapter Five: Mary, Mary, Quite Contrary.
Getting inside Mary's Journal.
Afflicting the Comfort Zone.
Changing Repetitive Patterns.
Doing What Comes Unnaturally.
Resisting What Is Best for You.
Creating Powerful Emotional Experiences in Trading.
Chapter Six: The Evil Spiders.
Communication and Metacommunication.
Metacommunications in Trading.
The Communications of Traders' Bodies.
The Mind beneath the Human Mind.
Knowing More than You Know: Implicit Learning.
Minding the Complexity of the Markets.
Chapter Seven: The Big Man beneath the Bed.
Big, Silent Walt.
Creating Powerful New Experiences.
Regression: The Mind's Time Travel.
Entering the Time Portal.
When Your Gears Remain Locked.
Novelty: The Key to Change.
Novelty in Therapy: Making Translations.
The Role of Consolidation in Change.
Chapter Eight: Buried Alive!
The Art of Timing in Therapy and Trading.
Markers and the Markets.
Markers with the NYSE TICK.
The Power of Dreams.
Dreams as Emotional Communications.
Repetitive Dreams: The Themes of Life.
Hypnosis: Accessing Other Minds.
The Waking Trance: Daydreams.
Chapter Nine: Trance-Forming the Mindscape.
The Radio Dial of Consciousness.
Changing Behavior by Changing Contexts.
Trauma and the Radio Dial.
Dr. Brett Receives Strange Communications.
Mapping the Mindscape.
Experiments with Trading.
Chapter Ten: The Coat in the Closet.
Stopping the Morning Frenzy.
Stopping on the Way to New York.
Knowing More than We Know We Know.
Joan and Her Inner Voices.
Joan's Lullaby Therapy.
When Efforts at Change Fail.
Chapter Eleven: Pinball Wizardry.
Creating Models of the World.
Modeling Yourself as a Trader.
Playing Market Pinball.
Contrary Trading: Fading the Maps of Traders.
Internal Maps and Inkblots.
Maps and the Language Traders Use.
Chapter Twelve: A Session at Gunpoint.
Jack, Man in Crisis.
Facing Life's Challenge.
When the Game Is on the Line.
The Edge in Crisis Counseling.
Dr. Brett's Trading Crisis.
Creating Change by Creating New Roles.
Leaps and Tempos.
Chapter Thirteen: A Dose of Profanity.
Understanding Your Relationship with Yourself.
Dave, the Narcissist.
Regression and Multiplicity.
Narcissism and Regression.
The States of Daily Experience.
Effort and Partial Consciousness.
Achieving a Novel Mind Frame.
Changing the Posture of Mind.
Chapter Fourteen: Trading from the Couch.
Propositions for Trading Psychology.
Changing Your Mind: Applying the Principles.
Matching Your Trading to Your Personality.
The Great Frontier: Developing Trading Expertise.
Implications of the Implicit Learning Research.
Greatness and the Acquisition of Expertise.
Etching the Brain.
The Quest for Market Mastery.