{"id":56772,"date":"2016-08-14T00:53:06","date_gmt":"2016-08-14T07:53:06","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=56772"},"modified":"2016-08-14T00:53:06","modified_gmt":"2016-08-14T07:53:06","slug":"cognitive-dissonance-trading","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/ask-al\/cognitive-dissonance-trading\/","title":{"rendered":"Ask Al: Cognitive dissonance in trading"},"content":{"rendered":"

Cognitive dissonance or bias when trading
\n BPA trading room Q&A: January 27, 2016<\/h2>\n

Question: Often, especially in a trading range, it always seems like the current leg is about to reverse. Sometimes I have a hard time imagining the leg will continue. Do you ever struggle with this kind of cognitive bias?
\n Audio duration: 2min 00sec<\/em><\/p>\n

<\/p>\n

Being stupid, not smart!<\/h3>\n

\"StupidopolyNo!\u00a0I really do try to be stupid when I trade.\u00a0 Being smart sometimes is a disadvantage because, it allows you to imagine what might happen — even though it\u2019s unlikely.<\/p>\n

So you get caught up spending time thinking that \u201cWhat if this?\u00a0 What if that?\u201d Instead of saying, \u201cEh, that\u2019s probably not going to happen,\u201d and then just taking trades.<\/p>\n

Learn to be humble<\/h3>\n

So years ago, you know, I used to struggle with everything.\u00a0 I\u2019d see so much and I\u2019d just get analysis paralysis.\u00a0 Always try to think too much.\u00a0 I came to the conclusion that it was a defense mechanism, that it was not so much me being a really smart guy, trying to use all my weapons in the fight against everybody else as it was me being afraid to take a trade<\/a>.\u00a0 I had to get over it and now I\u2019m much more humble — not with you, not with my family, not with my friends. But with the market I\u2019m much more humble.\u00a0 I never get committed to anything.\u00a0 I just assume that no matter how bullish, how bearish the market looks, it\u2019s no more than a 40 percent chance that the opposite — well, let me rephrase that — no matter how good one direction looks, there\u2019s still a 40 percent chance it can do the exact opposite and it can do it very strongly.<\/p>\n

Always assume you can be wrong<\/h3>\n

So that\u2019s kind of my crutch as far as cognitive dissonance<\/a>.\u00a0 When I say I respect the market, what I\u2019m saying is:\u00a0 No matter how bullish I am, I still think I\u2019m going to be wrong 40 percent of the time.\u00a0 A lot of days, I\u2019m wrong zero percent of the time. But that\u2019s how I look at it.\u00a0 I always assume that I could be wrong 40 percent of the time.<\/p>\n

Al Brooks<\/em><\/p>\n

Information on Al’s Online day trading room<\/a><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Cognitive dissonance or bias when trading BPA trading room Q&A: January 27, 2016 Question: Often, especially in a trading range, it always seems like the current leg is about to reverse. Sometimes I have a hard time imagining the leg will continue. Do you ever struggle with this kind of cognitive bias? Audio duration: 2min […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-56772","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/56772","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=56772"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/56772\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=56772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=56772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=56772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}