Proactive Psychology

Question 1

What is the key to proactive psychology?

Answer 1

Think in probabilities

Question 2

How can we think in probabilities

Answer 2

By thinking bigger, don’t focus on the next trade, focus on the next 100 trades. Journal the trades and look at larger sample sizes.

Question 3

How can you simplify the execution of trades?

Answer 3

By making sure that all thinking is done prior to trading. Every aspect of the trade should be black and white, and it should be based on stats.

Question 4

How do we make decisions in trading?

Answer 4

We make decisions by collecting and analyzing the data. Only once we have a beneficial variable, we can decide to implement it moving forward.

Question 5

Why shouldn’t you be scared to take a loss?

Answer 5

You shouldn’t be scared to take a loss because each individual trade shouldn’t mean anything to you, other an an opportunity to gather data.

Question 6

How do emotions solve problems?

Answer 6

They don’t, logic solves problems, and when there is emotions, there is little logic.

Question 7

If your friend shows you a winning trade that s/he took, what do you do?

Answer 7

say congratulations and follow the plan. The grass is greener where you water it.

Question 8

How can we avoid attaching too much to one individual trade?

Answer 8

By understanding that we only look at the outcome in terms of sample sizes and groups of trades.