The Psychology of Trading: Tools and Techniques for Minding the Markets

asr: 11. Trading success is a function of possessing a statistical edge in the markets and being able to exploit this edge with regularity
the author regarded them as the 11 major themes explored in his book.
- read the above word by word here is dicect
a) possessing a statistical edge in the markets : it takes at least 6 months to 1 year to JUST realize this fact ( after many losses for many people )and then another 6 months to find edge ( in my case. with observing Mr. K i realized what is his edge)
b) exploit this edge with regularity : the regularity is key , how can you do it . in case of Mr. K he has stock machine screens that screen stocks he wanted to trade in future and setup alerts when certain criteria is met and have UPFRONT prepared notes to ACT when such alerts are triggered ( not thinking what to do when alerts are triggered).

1. Behavior is patterned.
2. Your trading patterns reflect your emotion patterns.
3. Change begins with self observation
4. Problem patterns tend to be anchored to particular states. (When you enter a particular state thru emotional, physical, or cognitive activity, you tend to activate the behavioral patterns associated with that state.)
5. Our normal states of mind, which define most of our daily experience, lie within a restricted range of our possibilities. (Your immersion in daily routine keeps you locked in routine mind states)
6. Most trading occurs in a limited range of states, trapping traders in problem patterns. (Traders tend to place greater emphasis on the data they process than on the ways in which they process those data.)
7. People in general, and traders specifically, enact solutions as well as problem patterns.
8. Eliminating emotions is not necessarily the secret to improving trading. (Traders can utilize positive emotional experiences to identify constructive solution patterns and to create an anchoring of new, positive patterns.)
9. Success in the markets often comes from doing what doesnt come naturally.
10. The intensity and the repetition of change efforts are directly responsible for their utlimate success.
11. Trading success is a function of possessing a statistical edge in the markets and being able to exploit this edge with regularity.

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The Psychology of Trading
http://www.esignal.com/trading201/ask2/psychology.aspx

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Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology

1/ Competence precedes confidence: Winning mindsets result from mastery, not the reverse pg 4

2/ When you have found your niche, you dont need discipline to do the right things; you wont want to do anything else. pg 29
( like our VP )

3/ Markets, like people, have their personalities; our relationships with markets will profit to the extent that there is compatibility. pg 35

4/ Evolution occurs when we are so taxed that we must make fresh adaptive efforts. The expert is one who continually adapts to extraordinary performance demands. pg 119

5/ How to trade and what to trade are subordinate to when to trade. pg151

6/ Amateur traders turn into professional traders once they stop looking for the next great technical indicator and start controlling their risk on each trade. - John Carter pg 156