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    Anatomy of A Traders Mindset

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    Michael Mario
    The document discusses how excessive reading and research can be counterproductive for traders. It describes a conversation where a student went off topic to discuss details from 2002 that were irrelevant to the current trading lesson. This led the student to spend 6 hours on extra work that did not apply to the lesson or current trading. The student realized they had fallen into a pattern of "ritual" research rather than focusing on the topic at hand. Excessive reading can provide a false sense that more knowledge will lead to better trading, but it often just creates more confusion and delays taking action.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Anatomy of A Traders Mindset

    Uploaded by

    Michael Mario
    99 views2 pages
    The document discusses how excessive reading and research can be counterproductive for traders. It describes a conversation where a student went off topic to discuss details from 2002 that were irrelevant to the current trading lesson. This led the student to spend 6 hours on extra work that did not apply to the lesson or current trading. The student realized they had fallen into a pattern of "ritual" research rather than focusing on the topic at hand. Excessive reading can provide a false sense that more knowledge will lead to better trading, but it often just creates more confusion and delays taking action.

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    Anatomy of a Traders Mindset

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    The document discusses how excessive reading and research can be counterproductive for traders. It describes a conversation where a student went off topic to discuss details from 2002 that were irrelevant to the current trading lesson. This led the student to spend 6 hours on extra work that did not apply to the lesson or current trading. The student realized they had fallen into a pattern of "ritual" research rather than focusing on the topic at hand. Excessive reading can provide a false sense that more knowledge will lead to better trading, but it often just creates more confusion and delays taking action.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    99 views2 pages

    Anatomy of A Traders Mindset

    Uploaded by

    Michael Mario
    The document discusses how excessive reading and research can be counterproductive for traders. It describes a conversation where a student went off topic to discuss details from 2002 that were irrelevant to the current trading lesson. This led the student to spend 6 hours on extra work that did not apply to the lesson or current trading. The student realized they had fallen into a pattern of "ritual" research rather than focusing on the topic at hand. Excessive reading can provide a false sense that more knowledge will lead to better trading, but it often just creates more confusion and delays taking action.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Anatomy of a Trader’s Mindset

    martinkronicle.com/anatomy-of-a-traders-mindset

    Michael Wednesday, January 22, 2014

    I had a great chat with one of my students last week and something hit me from our
    conversation. Like me (and probably you) he’s an avid reader. It was such a great
    conversation, I came away with something…

    We were talking about the most recent assignment that he was working on and he got
    WAAAAY off the subject by telling me all the fundamentals of the company etc “In 2002,
    they listed on the FTSE and their main product was…” and I was like “Whoa, what the
    heck does 2002 have to do with today and trading in the ever-evolving moment of NOW
    in January 2014…?”

    NOTHING.

    Like I wrote about in my book, we are conditioned to read and work on our trading like
    we’re back in high school or college. The problem with that is – IT DOESN’T WORK. He
    went on and did like 6 hours of extra work and he can’t apply any of it – neither to this
    lesson, nor to trading right now.

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    By the end of the conversation he saw how he went down a fruitless path of RITUAL. It
    feels good to go read and study, but in this case it had nothing to do with the subject at
    hand. (Research wasn’t even part of the lesson – he did this on his own). He told me that
    he felt like he “had to do something more…” His words, not mine. But he thanked me
    because this has been a pattern in his “trading” for the last 3 years and he’s not made any
    progress. Enter Michael Martin…

    Conclusion: You can develop very bad habits from reading too much on your own. The
    more you know, the smarter you’ll become – YES.

    The downside is, the more you know, the more confused you’ll be on where to get started.
    In other words, I know a great deal of THERAPISTS, ANALYSTS, AND
    CONVERSATIONALISTS per the chart above.

    Sadly, they all think of themselves as PRO TRADERS, forsaking years of potential great
    trading, absorbing huge opportunity costs, yet thriving on rituals that feel good but don’t
    change their P&L.

    Ironically, although they are reading voraciously, “ignorance is still bliss” — and it’s also
    very expensive in this context.

    If you find yourself “reading too much,” you may lack confidence or be in fear about your
    ability. Guess what: every trader on the planet has been there at one time or another and
    had moments of self-doubt. I include myself in that camp…

    What I’ve found is that the RSI (Relative Strength) of the feelings of self-doubt, insecurity,
    or lack of confidence is what will eventually compel you to take action (or not).

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