Market Mind Games Flashcards
(218 cards)
1
Q
What is the foundation of success?
A
Feeling and emotion; they contribute to the meanings of everything.
2
Q
Does emotion cause you to make or lose money?
A
No, your actions based off these emotions do.
3
Q
Who is the fictional character of Michael Kelley?
A
An academic about to get a real shot at running money.
4
Q
Who is the fictional character of Richard Kelley?
A
Michael’s austere and judgmental father, who, like all parents, looms large in his conscious and unconscious mind.
5
Q
Define austere:
A
Severe in manner or appearance; uncompromising; strict; forbidding
6
Q
Who is the fictional character of Renee Smith?
A
The daughter of a former floor trader.
7
Q
Who is Christopher Smith?
A
Renee’s father; a former floor trader.
8
Q
Does assessing the odds of something eliminate the risk?
A
Not even close; if you see a percentage sign - all bets are off.
9
Q
Do numbers / charts mean everything in stocks?
A
No, they’re just one part of the BIG picture. There is a huge gap between where the numbers leave off and peak performance begins.
10
Q
Can numbers predict anomalies?
A
No! And you can not enumerate anomalies. Countless stock market anomalies occurred within the last two decades which should not have ever happened in a thousand years according to probability.
11
Q
If you have a less than 100% probability that is only good for a limited time, what use is it?
A
Nearly none unless placed in the correct context.
12
Q
Why does almost anyone who claims to be an expert on markets preach probability?
A
Because it is one key factor to peak performance and is easy for laymen to understand.
13
Q
What is one key problem people have with numbers?
A
People find comfort in them so they dramatically overestimate their value.
14
Q
In what ways are stocks like poker?
A
If you ask novices they will tell you its all about the numbers. However, the professionals put the numbers in the right context; they aren’t numbers games, they’re people games.
15
Q
Is it possible to know the future?
A
No!
16
Q
Can numbers lie?
A
Yes, telling only a partial truth is lying.
17
Q
What roles do probabilities / numbers play in decision making?
A
They tell a partial truth, but are only one part of a big picture. You need to visualize them in their proper context to properly use them. Deeply understand the concepts and fundamentals that drive them.
18
Q
How can market “machines” work?
A
They can’t - if you can’t understand how human decision making in trading works then how can you possibly duplicate it?
19
Q
How did Watson win at Jeopardy and what does it mean?
A
It accessed online databases to find answers. Then it it weighted how certain it “felt” about the answers to decide if it would ring in. This means to accomplish peak performance, you must utilize your feelings as data inputs.
20
Q
What is the first rule of trading?
A
Live to trade another day.
21
Q
What is the difference between risk and uncertainty?
A
Uncertainty can be measured. Risk is uncertainty that can’t be measured.
22
Q
Does advanced technology eliminate risk?
A
No, you can never fully eliminate risk.
23
Q
How does poker compare to the stock market?
A
There are known odds, statistics, and probabilities with both. However, the “game” isn’t the numbers, it’s reading the other participants.
24
Q
What are Markowitz’s two stages of portfolio management?
A
Stage 1: Observations + experiences –> beliefs about future markets.
Stage 2: Analyzing the numbers/charts.
25
What is the best way to manage your risk?
Focus on your beliefs / assumptions. If you don't continually analyze and revise them the numbers will "lie" to you.
26
Are numbers the primary focus of your market strategy?
No! Other player's perception of future player's perception are.
27
What is the most common delusion in the market?
That you have controlled risk by using probability; you can never fully control risk.
28
What does market performance emerge from?
The need to be constantly improving your judgement.
29
How do you best make judgement calls?
Know your beliefs; they limit your view, and fully exploit the context.
30
Are the assumptions about the superiority of cognitive ability grounded?
No, they are merely assumptions.
31
Are we more than our thoughts and behaviors?
Yes, we are mostly "feeling" beings.
32
How did Watson (the robot) win at Jeopardy?
He was able to know his confidence level faster than his human opponents.
33
What happened to the people mentioned in Descartes' Error after they sustained an injury in the brain that is important in emotion?
They were unable to make even basic decisions. They could see the pros and cons of each but couldn't decide between them.
34
Can we apply math / logic without feeling / emotion?
No, it is impossible to make decisions without emotion.
35
Is it enough to 'know' what should be done?
No, you need to 'feel' it for it to influence your behavior / actions.
36
Are feelings beneficial or harmful to decisions?
Neither, they are just data; how you use those feelings determines what effect they will have.
37
Can we ever know for certain what will happen tomorrow?
No, no matter how much we desire to.
38
Do probabilities tell you everything?
No, they only tell us where one piece of the puzzle goes.
39
When should you invest your portfolio?
Only after you know precisely what your beliefs are and why you believe them.
40
Does judgement require emotion?
Yes.
41
Should you devise self-awareness tracking systems?
Yes.
42
What is the "leap" to peak performance?
The numbers only take you so far, after that, it's about reading the other players and how confident / fearful you are about those reads.
43
Is it harder to read people from the screen?
Very much, you can't look into other trader's eyes.
44
What is the only thing you're doing when analyzing a stock?
Deducing if other players will value it more/less in the future.
45
Which degree should you be using in the market?
The third degree; the object of the "game" is to determine the average opinion expects the average opinion to be.
46
How do you "win" the market "game"?
Deducing what the average opinion of the average future perception will be.
47
How do you devise a strategy to make money in the market?
Devise a strategy that predicts people.
48
Do you make money by knowing the "facts"?
No, you make money by correctly predicting the opponent's future perception.
49
Do the "facts" have value?
Not in and of themselves, their context gives them value; what will other players think of this? When will other players know them? What other factors may obscure the truth?
50
Does it matter that much of today's volume stems from computer algorithms?
No, they were designed by people with emotions and are based off of their beliefs about the market.
51
Do market numbers differ from other numbers?
Yes, they don't convey anything precise in and of themselves; they only show what other people believe the future value will be.
52
What is a market price?
Merely a perception; nothing more and nothing less.
53
What is the proper role for numbers in the market?
To determine what others see and believe when they look at the numbers.
54
What is your edge?
View the market as a never-ending game of poker, in which the cards have no clear values, and the entire game is understanding how your opponents value their hand currently, and what influences their value of their hand in the future.
55
What does solving the eternal puzzle of markets require?
Viewing numbers as a language that is talking to each participant.
56
Are other market participants "strangers"?
No, they are far more like you than you tend to think, remember this when anticipating their perspectives.
57
Is "the game" about finding that one piece of information that nobody knows?
No, it's about understanding other player's perspectives. Information is only valuable when other participants know it or are about to know it.
58
Does the human brain use the same system when looking for people in symbols as it does when it can see the actual person?
No, but everyone has both systems and some people use them better than others, that's why some people are naturally better at trading than others; but everyone can improve their ability.
59
What is ToM?
Theory of Mind: Consciously/ unconsciously working with a theory of what's going on in someone else's mind; recognizing patterns of likely human behavior.
60
Are ToM ability scores directly related to market performance?
Yes, the market is all about reading other people.
61
Should you intentionally evaluate the context (feelings, emotion, perspective, degree, etc) through which you analyze data, projections, and probabilities?
Yes, first use it as a risk management tool (realizing your emotion's impact on your perspective) and secondly as a strategy for understanding market action.
62
What is perception?
Reality; average perception will morph the price into reality.
63
Do facts have any meaning without context?
No, you need to put the in perspective.
64
Are plans infallible?
No; everyone has a plan until they get punched in the face. Sometimes your instincts will react to the current situation faster than your plan can apply.
65
Does our brain deal with uncertainty faster than arithmetic?
Yes, this is likely because we are constantly dealing with uncertainty so it is conditioned for it.
66
Is uncertainty the exception or the rule?
The rule; we deal with it constantly in our lives and in the market.
67
Should you be determined to know all of your personal contexts?
Yes; you gain a psychological edge when you focus on the "gap" between where the numbers leave off and exceptional performance begins.
68
Do our contexts come from the external environment or from our internal memories, beliefs, and expectations?
Both; constantly work at knowing all of your contexts; they influence every decision you make.
69
Should both internal and external contexts be explored to their full extent?
Yes.
70
What is the most difficult part of trading?
Timing; the market could do exactly what you expect but if your entry/exits aren't timed right you can still lose money. The "final whistle" never blows.
71
Do current experiences affect the subsequent experience?
Yes; it influences your mood and beliefs that you bring with you.
72
Why should you start your day right?
It sets your mood and beliefs that you bring with you; if you start off in a good mood you will likely have a good day.
73
What must you do to "stay in the game"?
Continually clarify your perceptions so they match up with the realities and eventualities of other players.
74
Why is the concept of ignoring your emotions preposterous?
You couldn't even see without them! You must account for them and their effects on you to manage your risk.
75
Do you need to control your emotions?
Absolutely not; you need to lean into them. The only thing you need to control is your actions.
76
Is every decision you make driven by an emotion?
Yes, you need to examine the emotions driving all of your decisions, especially in the market.
77
Do unconscious forces influence your current behavior and decisions?
Yes; past experiences effect you via your unconscious; its up to you to re-evaluate your unconscious.
78
Why don't you feel much emotion?
You act on the information as soon as you get it; there is no static emotional energy lingering. Take time to feel each time before you act on it or make a decision.
79
Should you take time the "feel" each emotion every time before you make a decision or act from it?
Yes, this will give you much more information about what you truly want, it will also enhance the strength of your emotions.
80
Should you identify and analyze all of your emotions each time before you make any decision?
Yes! Especially in markets.
81
What are fear and panic?
Early warning tools; a sign that something is aloof.
82
What are feeling contexts (fC)?
Feelings such as hunger, fatigue, hot, cold, boredom, etc.
83
What are emotional contexts (eC)?
Emotions such as happiness, anger, sadness, excitement, FOMO, etc.
84
What is knowing but not controlling your emotions (fC + eC)?
Your secret weapon.
85
What is the key to analyzing uncertainty in markets and in life?
Knowing your fC.
86
Does understanding your own fC enhance your ability to understand other participant's fC?
Absolutely! The better you understand yourself the better you will understand others.
87
What is the gradual way of incorporating fC and eC into your market strategy?
First use it as a way to avoid taking bad trades; to avoid FOMO and revenge trades. As you develop this skill you will be able to see other's acting on these emotions in the market and be able to capitalize on it.
88
What is more important: managing risk or seizing opportunities?
Managing risk; you don't wanna dig yourself a hole by being too aggressive.
89
Is volume a useful tool for gauging people's emotion?
Extremely; it is directly proportionate with the amount of eC and fC driving the market.
90
Is volume directly related to how much people care about past prices?
Yes.
91
Do you need a good "blend" to succeed in the market?
Yes, you need the right blend of math, chart-reading, feelings, and gut instincts to succeed.
92
Do you need to be flexible when trading a plan?
Yes, no plan is perfect; account for new information.
93
Do markets have "multiple personality disorders"?
Yes, you must be able to quickly identify a new "personality" in order to succeed: bull, bear, range, etc.
94
What is the goal in any sort of investing or trading?
To predict the future perception of other participants.
95
What do probabilities reflect?
Past patterns; they don't include everything that will happen in the future.
96
What are numbers?
The market's language; meaning symbols that aren't absolute, the real game is reading it's language.
97
What is the gap between numbers and peak performance?
Judgement calls based off of learning the language of the market and understanding the collective eC and fC influencing the market and your perception of it, including your own.
98
What does the human brain rely on when dealing with uncertainty?
Context.
99
What do beliefs provide?
A pre-existing context.
100
How do you need to view emotion?
As data; all decisions require it so you must use the information it provides to your advantage.
101
Does eC connect ideas and experiences to judgements and decisions?
Yes.
102
Do you need to take care of your body like a well oiled machine?
Yes, imagine you are an athlete. Your brain is an extension of your body so you need properly exercise, fuel, and rest your body to achieve peak performance; you cant have peak performance when you're running on E.
103
Should you care for body first before all else?
Absolutely.
104
Should you make any trade decision when you lack physical energy?
Absolutely not, if you're tired or hungry, address the issue and come back later; you won't make the best decisions when you're running on E.
105
Does sleep deprivation affect your perception of risk?
Yes; it literally makes you nearly blind to it. It makes you see almost only potential without risk. Do not trade when running on E!
106
Why must you treat your body properly even though it is so obvious?
Because it is so obvious! You can't win at the most competitive game in the world if you start on a tank half-full.
107
How should you schedule your trading once you have complete control over it?
Plan your day so you're working in the market during your peak emotional and physical energy levels. This make seem like you're not working at first, but you're actually working smarter; you will make fewer trades but they will be higher quality.
108
What is the best way to maximize your revenue?
Accept the reality of feeling and emotional energy context; create your edge here.
109
Should you take the day off if you're feeling "out of it"?
Absolutely, and don't feel guilty about it; You should only trade when you're at your best.
110
What will ultimately win the game for you?
Good judgement on the fly; roll with the punches. Do everything you can to improve your judgement and execution. This includes things as basic but vital as sleep, food, and exercise.
111
What happens if you ignore your emotions?
You will keep making the same mistakes over and over, this will drain your emotional energy and your bank account; use your emotions to your advantage!
112
Should you take a breather after losses?
Yes! Losses drain emotional energy, give your body some time to replenish it. Remember, even professional baseball players only hit 30% of the time. Regroup, re-focus, and come back with renewed strength, energy, and vigor.
113
Why is the strategy of taking a break after losses so powerful?
You will have less losses; instead of losing more money your funds will continue to grow exponentially.
114
What's the best way to predict human behavior in the market?
Feeling contexts; they drive all decisions and prices.
115
What is the first thing you should consider when analyzing any decision?
Emotional context; you need to first understand the emotional environment before you can analyze it logically.
116
How can you amplify your emotions?
Take the time to actually expect to feel your emotions and lean into them. Anticipate that you will always be feeling something and take the time to identify and analyze those feelings, even if it's as basic as tired and hungry.
117
How do you get to know yourself?
By taking time to actually feel your emotions in every single thing you do. Your feelings drive every decision you make! Understand them damn it!
118
Why do you need to take time to record what you're feeling?
It helps you lean into the feeling and analyze it further. Keep a journal!
119
What are the three steps to identifying your emotions?
1. Anticipate them - the feelings will be there
2. Notice - be determined to become aware of them
3. Name - begin to name the combination of feelings
120
Do you need to come to terms with the fact that you have emotions?
YES!!!
121
Do you need to keep a daily "life" journal focusing on your feelings?
Yes! Go into great detail! Discuss your feelings throughout the day and what you did with them.
122
What is the spectrum of fear and how should you use it?
A line with fear of losing on one side and fear of missing out on the other. Before making any trading decision you need to place yourself somewhere on this line to asses your contexts.
123
What is more important: knowing your eC at all times or your risk/reward ratio?
Knowing your eC at all times! You can't even see the risk/reward ratio properly unless you know all of your eC!
124
What must you ask yourself each time before you take a trade?
How will I be feeling in the future if I take this trade?
125
Should you trade while angry?
Absolutely not! Take the day off, it'll be good for you!
126
Do emotions/feelings (anger, happiness, fatigue, hunger, etc) distort perceptions of risk?
Yes! Don't trade while your perception is distorted!
127
What is CYE?
Control Your Emotions - the false doctrine preached by most traders.
128
How do you get used to admitting your feelings?
Be honest about your feelings to everyone and keep a diary. Feel your emotions as much as you can feel them. Don't judge them.
129
What two things do great traders do?
They treat the markets as people and have an emotion of confidence that they leverage; following this book will help you gain those traits.
130
What can you do once you learn to understand the fear of losing money?
You can move on to understanding more advanced fears, like of being wrong or stupid, etc. This will ultimately help you avoid making bad trades from them.
131
Why must you learn to embrace uncertainty?
Avoiding it will waste your time, energy, and money; nothing is certain!
132
Where can you find poems and stories about market feelings?
Psychological Capital blog, I encourage you to take a look.
133
What is FOMO often mistaken for?
Greed.
134
Should you move your stop loss to lock in small profits merely because of FOMO?
NO!
135
Why do men often exaggerate their abilities?
FOMO; they detest feeling as if someone is better at anything than them.
136
What is regret theory?
the theory that if you add the desire to avoid future regret to what anyone believes will suit them best you can build a more accurate model of how we make decisions.
137
Why can it seem like you can never "win" at the markets even though you're making money?
Because you're never 100% right. No matter what you do you could always have made a couple more cents.
138
Why should you lean into your feelings?
It helps you embrace uncertainty.
139
Is it easier to "speed up" how often you take trades or "slow down".
It's easier to speed up but both are doable.
140
What does cauliflower have to do with the market?
Both have fractal patterns - general patterns that vary by scale and direction but repeat indefinitely. No two pieces of the pattern are perfectly the same but they all look identical from a distance.
141
What do fractal patterns incorporate?
All fC, eC, judgement calls, background. They are amazing predictors of human behavior.
142
What are fractal patterns found in?
All of nature; bronchia, tree branches, cauliflower, the human psyche, etc.
143
What is the difference between simple fractals and multifractals?
Simple fractals scale in one direction and multifractals scale in different directions.
144
Are there fractal patterns in the unconscious mind?
Yes, delve deep into it! Explore it.
145
What is usually at the heart of our core fractal?
The relationship with our mothers.
146
When is the brain developing at its fastest rate ever?
As infants; our core fractals are being developed in those moments.
147
What's the easiest way to begin exploring your unconscious patterns?
Gradually go back layer through layer in your history. Start with friends, teachers, siblings, and gradually work your way toward your father and mother.
148
Is your history doomed to repeat?
Yes, unless you study it and take action to the contrary.
149
Why do people have a compulsion to repeat?
They don't see it as repeating, they think each circumstance is different from the last. It's a fractal pattern from their childhood which will inevitably continue unless they identify it and take actions to the contrary.
150
Does taking the opposite path than our fractal patterns work?
No, it still keeps you in the pattern, just the inverse of it.
151
Do your emotions in the market stem from your fractal patterns developed when you were a child?
Yes, uncover the past and identify the patterns so you can improve.
152
Does the same central fractal patterns appear in your life as your world expands?
Yes.
153
Does how our mothers and fathers raised us influence our fractals?
Absolutely! Fathers are highly critical so we're highly critical of ourselves/others. Mothers didn't love us so we never loved ourselves or anyone else.
154
Does the market represent authority figures in our fractal patterns?
Yes, remember this when analyzing your fractals.
155
Does your life history determine the emotion you feel when doing anything? Especially trading?
Yes and yes!
156
Do traders have a fundamentally fractal reaction pattern to the way prices move?
Yes, everyone does.
157
Does your reliance on contextual clues become more apparent with the greater the uncertainty is in something?
Yes.
158
What are the trader A and B multifractal pattern examples?
Trader A can barely get a trade before he the fractal pattern of his mother's feelings hits him. Trader B can trade fine until it comes time to exit, he feels as if he doesn't deserve the win.
159
Do fractal patterns not exist on your psyche merely because you don't see/feel them?
No, they're there whether you see them or not.
160
If you want to prove you're smart, what does it usually come back to?
Wanting to prove you're smart to a specific person, usually your father.
161
When does multi-fractal development begin?
Likely before birth, but most certainly after. We gain a sense of who we are and how we fit in the world from very early in our lives. Childhood experiences pile up on top of ideas / feelings about ourselves that come from before we can even speak.
162
What does the market represent in your psyche?
An ultimate authority figure.
163
How do your feelings about the market tap into your psyche?
It represents the ultimate authority figure; how could you stare directly at the ultimate authority figure with it's complete indifference about you and not have it tap directly into how you feel about yourself?
164
Are harmful tendencies in the market that derive from our psyches curable?
Yes, becoming conscious of what is unconscious gives us more freedom to perceive, judge, and decide in the moment.
165
Does your psyche care about your account balance?
No, it cares about your emotional "capital"; it's your most important asset in front of the screen and off.
166
Why should you strive to understand your unconscious mind?
Because it's effecting your decisions whether you know it or not; if you try to work against it, you almost always end up getting what you're trying to avoid.
167
Should you figure out who the market participants are in each market before you enter?
Yes, you need to know who's in the game.
168
Does it matter if you miss the very beginning or end of the a move?
No, the key to profitability is capturing the "meat" in the middle. At the beginning or end no one knows what's going on so it's very hard to predict.
169
Does sleep deprivation effect your perception of risk?
Yes! Don't trade while tired! Sleep is an edge!
170
Does physical exercise effect your performance in the market?
Yes! Working off frustrations gives you a physical "boost" that boosts your attitude and energy level.
171
What should you always take care of first and foremost?
Your body; nothing else matters more. This will lead to a happier, healthier life and will also greatly improve your market performance.
172
Should you always be looking for what everyone else doesn't know?
No, your time is much better spent looking for what everyone is about to know.
173
Do you need to know everything that no one else knows?
No, you just need a little heads up about what people are about to know.
174
What should you always know about the market?
What came before, how it's perceived, and what the general explanation for it is.
175
Does uncertainty tend to cause anxiety?
Yes.
176
How do you deal with the anxiety of uncertainty?
Find an increased comfort in not knowing, embrace it. Lean into the discomfort of not knowing and you will actually find comfort in it. Your brain will be satisfied that you've received the message and will move onto other things.
177
How do you gain psychological leverage?
By treating it with more importance than knowing what the market is doing; it's more important to know how you're feeling than it is to know about the stock.
178
Should you avoid skipping days that you aren't feeling your best or feel bad about it?
No, enjoy it! Take the day(s) off to get yourself back to peak performance. Who cares if you miss a few trades? The money you'll save from avoiding bad decisions will actually increase your net profit.
179
What's the basic three step psychological leverage plan?
Create physical energy (diet, sleep, exercise, etc.)
Read other people (sense how they're feeling)
Get the risk management edge by constantly knowing how you feel.
180
Do most people act out their feelings in the market?
Yes, use this to your advantage when trading.
181
Should you know when to "push it" and when to "lay off" the market?
Yes, if you're in peak emotional and physical state go for it! If you're not feeling it, lay off.
182
Should you use rules like "stop after you make x dollars a day" or "stop after 3 losers"?
No, manage your risk by knowing your eC and fC, not through arbitrary rules.
183
What's step one to deducing mental fractals in your trading?
Use a voice recorder to record your stream of consciousness through two or three trades, the time frame is irrelevant. You don't need to narrate the market, just narrate how you're feeling, what's going through your mind, what's influencing your decision. If you're having trouble, try talking in the third person, like you're dad or someone.
(186-190)
184
What's step two to deducing mental fractals in your trading?
Write a list of five to ten memories that stand out from before you were 18, anything that comes to mind. From that list, pick three that stand out. Then write out the whole story of these three memories. Next, look at these stories from other's perspective. How were others feeling? How did they see it? Last, write down how the situation made you feel in the moment and what I told myself about the situation and leave it alone for a few days or weeks, just letting it sit in the back of your mind.
(186-190)
185
What's step three to deducing the mental fractals in your trading?
While you're letting the previous step "marinate", make a log of your dreams. What happens in those dreams doesn't matter too much, its more about how they make you feel. Keep something to write them down in nearby. For the purpose of this exercise, try to get about three or four, but consider making this a regular routine, it can be pretty beneficial.
(186-190)
186
What's step four to deducing mental fractals in your trading?
Review the data from your memories and dreams, then answer these questions:
What do I expect for myself?
How do I expect things to turn out?
How do I seem to feel about myself?
What kind of labels do I talk about myself with?
What fears come up?
How do I react to others?
How do I react to being told something other than I want to hear?
You're trying to arrive at the basic story of your typically unconscious feelings. Just do the best you can with whatever your mind serves up.
(186-190)
187
What's step five to deducing the mental fractals in your trading?
Go back to your trading recordings and summarize what feelings came up during your decision making moments; you're looking for themes and feelings that repeat themselves across markets and decisions.
Now compare this to your answers in step four. What seems similar? Something should jump off the page, but sometimes it doesn't immediately click, so if it doesn't, delegate it to your subconscious and let it sit for a few weeks. Here are some examples of what you might find:
"I can never get what I want"
"It's always my fault for..."
"If I had just been little more careful or worked harder..."
"If I just didn't do stupid things..."
(186-190)
188
Will just simply knowing the problem with your psyche fix it?
Sometimes, but not always. Ohers have found it much more effective to create a new emotional experience.
This means stop talking yourself out of going along with it, at least in your mind. Lean into the feeling, feel at one with it.
189
Does using your head to talk yourself out of your feelings work well?
No, it may on the surface but deep down it doesn't. You might not feel the emotions any more but they'll come out in your decisions. It's much more effective to lean into them, embrace them.
190
Has Denise Shull ever been unable to find fractal patterns in someone's trading if they provided her with accurate information?
No, there's always a pattern.
191
Why is it worth the discomfort of the process to realizing your multifractal patterns in your trading?
It can help you avoid the worst trades of the year and of your life because you've learned how to act out of a different feeling context than the one that's imbedded in you.
192
Why does the market make you feel like you're a kid lost in a grocery store?
Because in both circumstances, you don't really know what to do. You are surrounded by absolute uncertainty. You can combat this feeling by embracing it, feeling it deep into your core.
193
Do you get strong reliable intuitions or are they just unreliable impulses?
You get both, the trick is learning to tell the difference.
194
What is intuition?
Knowledge communicated through a feeling that comes from unconsciously realizing you've seen the same pattern before. Pretty much just unconscious pattern recognition.
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What is all this work from the book working towards?
The goal is to deeply understand yourself and your subconscious emotions/fractal patterns so you can tell if something is just a recurring fractal pattern from your childhood or a strong reliable intuition.
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Do traders who value intuitions (experiential knowledge) have an edge over those that don't?
Yes, a massive one.
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Should you force yourself to think super hard when trading?
No, focus on providing accurate information to your brain and let your unconscious serve up the decisions.
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What's one way to easily identify an unreliable impulse?
If it has a sense of urgency, like it needs to get done know, suspect that it's an impulse.
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What's one way to identify an intuition?
If it has a calm sense and seems to come from nowhere, suspect that it's an intuition.
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Does "working on it" necessarily mean consciously and physically working on a decision in the market?
No, often times it will be easier and beneficial to just let your mind wander, let it sit in your unconscious for a minute.
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What's a good way to get in touch with your emotions especially if you're having a hard time since you've spent so much time burying them?
Take up poetry, music, art. You can make these yourself or take a keen interest in the work of others. Perhaps write a poem about your distaste for ambiguity.
202
How should you use your intellect in regards to your feelings?
Use your intellect to describe them and to allow yourself to feel more of it. Use your brain to put words to it, and then keep on doing it! Your goal is to know the difference between impulses and intuitions, and the key is knowing your feelings.
203
Does acting out your anger help?
Yes, but only when you know who/what you're retaliating against,
204
What's the first step to recovery from a major mistake or series of mistakes?
Take the time to feel bad; what else are you supposed to feel? You fucked up, take the time to accept that you should feel like shit. It doesn't make sense to take physical action until you understand what went wrong, and the best way to see where it went wrong is to feel like shit.
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What should you ask yourself after a mistake or series of mistakes?
What was my eC and fC when I made the mistake(s)? What fractal emotional context was I acting out?
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What's the a sure sign that your current mistake(s) have a fractal emotional context driving them?
When the hardest thing to do is walk away when you need to. It's not the here and now that you really care about, it's what it represents in your past that is bothering you.
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What do feeling contexts (fC) encompass?
Physical feelings such as hunger, exhaustion, and emotional contexts (fC) which are always influenced by fractal emotional contexts (feC)
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What do emotional contexts encompass?
Your current emotions which are always influenced by your fractal emotional contexts (feC).
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What are fractal emotional contexts?
The fractal patterns of your brain that stem from your experiences since you were a child.
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How will you know that you have mastered your fC, eC, and feC?
When you can have a single bad trade, recognize, immediately recognize it for what it is, then take action to fix it / prevent another. It's rarely the first mistake that kills you, its almost always the series of bad decisions that follow.
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What do you do after you take a "but I knew better" trade?
The same process as you do for a series of mistakes; take some time to actively feel bad, then ask yourself: What was my eC and fC when I made the mistake(s)? What fractal emotional context was I acting out?
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How do you prepare yourself for the barrage of eC, fC, and feC when trading?
Expect them; anticipate their presence each and every time you trade. This will condition your body to actively feel them so you are able to identify their impact on your perception.
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What will happen if you don't go through the process when you make mistake(s)?
You will go on a severe losing streak which could have been avoided if you followed the wisdom of the process.
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Should you celebrate when things go brilliantly?
Yes, force yourself to! Lingering positive eC will give you false confidence and skew your risk perception. So fuck it, go party! It'll make you more money!
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Does your newfound understanding of your fC, eC, and feC give you an edge in the market?
Yes! Maximize this edge by constantly striving to improve your understanding of this and yourself.
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What is the goal of Market Mind Games?
To help you become familiar and facile about analyzing market information and understanding who is taking the other side of your trade. This should help you realize that the perceptions belong to you and the interpretations are yours, and that the only one ever "pushing the button" is either you or your ego.
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What will be your biggest risk factor if you don't make your ego and unconscious conscious?
Your ego and unconscious feC, eC, and fC.
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Will you make more progress spending half of your time working on yourself than if you spent all of it looking for that next unknown piece of information?
Yes!
