Chapter_7_Flashcards
(10 cards)
What are ‘acquired instincts’ in the context of trading?
They are conditioned reactions to stimuli like social media, flashing charts, and alerts that train the brain to chase rather than wait and observe.
Why do traders ignore warning signals from their own body?
Because their brain is chasing relief, control, or a dopamine hit, overriding the internal hesitation or discomfort that signals a bad trade.
What does the phrase ‘the body always knows when you’re off-plan’ mean?
Your physical signals — tension, hesitation, shallow breathing — often indicate emotional trades that violate your system.
Why is trusting other traders often harmful?
Because most trading advice is noise, repeated without understanding, and doesn’t account for your unique psychology or system.
What does ‘second-hand thinking’ mean in trading?
Following strategies, signals, or systems that were not built or validated by you, which leads to dependence and lack of personal edge.
Who should you trust in trading?
Your system-based self — the version of you that thinks in probabilities, plans ahead, and trades based on criteria, not cravings.
Why is simplicity more effective than complexity in trading?
Because clarity and repeatability come from simplicity, while complexity hides mistakes and feeds overthinking and emotional trading.
What are signs that your trading system is too emotional or unclear?
If it excites you, changes daily, or requires constant thinking — it’s likely driven by emotion, not clarity.
What is the importance of clarity and calm in trading?
They signal readiness. If you’re not 100% clear and calm, you’re likely trading from emotion, not edge.
What is Instruction 7 from Chapter 7?
Avoid trading unless you’re 100% clear and calm. Emotional haze is a red light; peace is the green light for execution.
