Chapter_6_Flashcards
(13 cards)
What is the key mindset shift introduced at the start of Chapter 6?
Shifting from ‘I’m broken’ to ‘I’m miscalibrated — and I can fix that.’
Why is second-hand trading advice often harmful?
Because it’s not tailored to your mind, data, or experiences — it creates noise and misalignment.
What does the ‘machine’ metaphor represent in trading?
Your mind — a powerful tool that needs recalibration and reprogramming to perform well in trading.
How is your brain miswired for trading?
It evolved for survival, not statistics — it reacts emotionally to discomfort, loss, and uncertainty.
What is your true edge in trading?
Your ability to execute high-probability decisions consistently without emotional interference.
Why does your brain sabotage your edge?
Because it equates discomfort with danger and overreacts to short-term outcomes.
What happens when traders misunderstand their edge?
They panic after losses, adjust systems too quickly, and end up trading randomly instead of consistently.
How can traders retrain their brain-machine?
By exposing it to repeated discomfort without reaction and consistently following the system.
What is the main flaw of the brain-machine in trading?
It overreacts to short-term outcomes like losses, missed trades, or wins, causing emotional decisions.
What is Instruction 6 from this chapter?
Disregard any preconceived target or win-rate.
Why are daily profit goals and win-rate targets considered harmful?
Because they shift focus from executing the edge to chasing outcomes, leading to inconsistent behavior.
What should traders focus on instead of outcomes?
On executing each trade according to the system and trusting the long-term math to take care of results.
What is the real measure of success in trading?
How consistently you behave when it matters — not how often you win.
