Trading Psychology Podcast Episode 75: Action Bias

00:43:51
https://www.youtube.com/watch?v=xzB_pMsDQ-A

摘要

TLDRThis episode focuses on understanding 'action bias' within trading psychology, a topic less frequently discussed but critical for traders. Hosted by VP and Rob Reinhold, the podcast explores how the tendency to act often comes from societal conditioning that values action over inaction. They explain that in trading, however, this bias can lead to impulsive and unproductive decisions, as taking unnecessary actions in unclear situations can hinder trading performance. The discussion unpacks how this behavioral trait impacts traders in various scenarios, such as creating pressure to act for fear of missing out (FOMO) or reputation, and how this doesn't apply when successfully identifying the right trading moments requires patience and discipline. The hosts offer several strategies to combat action bias, including simply recognizing it, using demo accounts to test urges, removing stimuli that prompt trading, and employing automated systems to remove the emotional urge to act. The episode emphasizes that trading well often means knowing when not to trade, embracing inaction or patience as another form of strategic action.

心得

  • 🎯 Action bias is a common challenge in trading.
  • 🤔 Not all action is beneficial; careful analysis is essential.
  • 📈 Automated trading can alleviate the pressure to act impulsively.
  • 🧠 Understanding cultural conditioning can help manage action bias.
  • 🔄 Demo trading offers a safe space to experiment with risky ideas.
  • ⏳ Embracing inaction is sometimes the best trading decision.
  • ⚖ Self-awareness helps in recognizing and controlling biases.
  • 🔍 Breaking down psychological barriers improves decision-making.
  • 📉 Overtrading due to action bias can lead to poor results.
  • 📚 Continuous learning is integral to handling trading challenges.

时间轴

  • 00:00:00 - 00:05:00

    The podcast discusses trading psychology, focusing initially on the concept of action bias. The hosts, VP and Rob Reinhold, introduce the episode as a discussion expanding on previous topics like boredom in trading. They emphasize the importance of dissecting psychological concepts in trading rather than tackling them broadly in one session, as this could make them more relatable and understandable for traders.

  • 00:05:00 - 00:10:00

    The discussion continues with a definition of action bias, a tendency to take action rather than pause and think when an ideal decision is unclear. They illustrate this with a soccer analogy. Action bias in trading could lead traders to make impulsive trades due to the pressure of taking action, overshadowing the importance of patience and strategy.

  • 00:10:00 - 00:15:00

    VP and Rob offer examples of action bias, contrasting pressure from external expectations (like trading for a firm) with internal urges to act, such as a gambler feeling compelled to place bets. They argue that such impulses can lead to trading mistakes, highlighting similar behaviors in other contexts like gambling.

  • 00:15:00 - 00:20:00

    As they delve into more examples, Rob shares personal anecdotes about shifting from a job to full-time trading. He cautions against equating hard work in trading with frequent trading actions, emphasizing patience and the strategic aspect of waiting for the right trades rather than forcing action just to feel productive.

  • 00:20:00 - 00:25:00

    The podcast touches on the societal influence on action bias, debating whether it's more nature or nurture. They argue that internal programming drives people towards taking unnecessary risks in trading, which can be detrimental. Recognizing this can help traders understand their impulsive actions.

  • 00:25:00 - 00:30:00

    The hosts explore the emotional and psychological triggers behind action bias, such as the fear of missing out (FOMO) and the discomfort of inaction. They argue that previous experiences of missed opportunities heavily influence traders, often causing them to act impulsively during slow periods.

  • 00:30:00 - 00:35:00

    For solutions, they suggest understanding the role of inaction as part of the trading process, potentially testing impulsive trades on a demo account to evaluate their performance against strategic plans. They recommend maintaining discipline by removing trading apps and automation as ways to manage impulses.

  • 00:35:00 - 00:43:51

    Rob shares more about managing impulsive actions by controlling trading environments, like deleting apps or changing passwords, to reduce impulsive trades. The episode concludes with insights into using automation to predetermine actions, helping traders stick to their strategies and reduce decision-making pressure during trades.

显示更多

思维导图

Mind Map

常见问题

  • What is action bias in trading?

    Action bias is the tendency to act in situations where the decision is unclear, often taking unnecessary actions instead of carefully analyzing the situation.

  • Why is breaking down trading psychology important?

    Breaking down trading psychology allows traders to understand specific behaviors and reactions, improving decision-making by addressing smaller, relatable issues.

  • Can action bias be detrimental in trading?

    Yes, action bias can lead to poor decision-making and unnecessary trades, affecting overall trading performance negatively.

  • How can traders manage action bias?

    Traders can manage action bias by using strategies like demo trading risky ideas, removing trading apps to reduce impulse trades, and setting automated trading processes.

  • What role does cultural programming play in action bias?

    Cultural programming often encourages action, as seen in sayings like 'you miss 100% of the shots you don't take,' which can be detrimental in trading contexts.

  • Can inaction be beneficial in trading?

    Absolutely, sometimes not taking any action is the best course in trading, allowing more thoughtful and strategic decision-making aligned with trading plans.

  • How does action junkie behavior affect trading?

    Action junkie behavior, driven by the need to always be involved, can lead to taking too many trades without strategic reasoning, potentially leading to losses.

  • Is it common for traders to deal with the consequences of inaction?

    Yes, traders often fear missing out on potential gains by not taking action, which can lead to stress and impulse decisions.

  • How does automation help in managing trading actions?

    Automation can relieve the pressure of needing to act by setting predetermined rules for trading, reducing the likelihood of unplanned emotional actions.

  • Why is self-awareness important in trading?

    Self-awareness allows traders to recognize their biases and emotional responses, which can be crucial in maintaining discipline and adhering to trading plans.

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  • 00:00:01
    this is the trading psychology podcast
  • 00:00:03
    this is VP creator of non-nonsense Forex
  • 00:00:05
    and author of the book non-nonsense
  • 00:00:07
    Forex Trading psychology and with me as
  • 00:00:09
    he is every episode they call him Mr
  • 00:00:12
    action it's Rob Reinhold oh I like that
  • 00:00:15
    Mr action and yes I would love to be Mr
  • 00:00:19
    action all the time as an extrovert this
  • 00:00:22
    this episode is going to be right up my
  • 00:00:24
    alley here yeah and this is uh going to
  • 00:00:26
    be I guess the anti- episode to
  • 00:00:30
    something we did I don't know a few
  • 00:00:31
    months ago I think it was the episode we
  • 00:00:33
    did on boredom so like anything nothing
  • 00:00:37
    is definitive there's always little
  • 00:00:39
    nuances here and there so we are going
  • 00:00:42
    to tackle the aggressive side of the
  • 00:00:45
    equation and uh you know we've done this
  • 00:00:47
    too before Rob but I think we when we
  • 00:00:50
    come up with these new ideas they're
  • 00:00:51
    just really expansions on some of the
  • 00:00:53
    older ideas but we've got a lot of
  • 00:00:55
    really good feedback on the boredom
  • 00:00:57
    episode which I was a bit surprised and
  • 00:01:00
    and the extrovert episode so I think
  • 00:01:02
    it's time we expand on this a bit you
  • 00:01:04
    know getting really exciting feedback on
  • 00:01:06
    an episode about boredom is very
  • 00:01:09
    surprising yeah you it's I think certain
  • 00:01:11
    episodes just hit people a certain way
  • 00:01:15
    you know maybe they didn't know how to
  • 00:01:16
    articulate it before maybe they don't
  • 00:01:18
    even realize that they had these issues
  • 00:01:21
    and they just needed somebody to
  • 00:01:23
    actually say it you know on this podcast
  • 00:01:25
    Rob not a whole lot of people talk about
  • 00:01:28
    trading psychology out there and if they
  • 00:01:30
    do it's in one video and they try to
  • 00:01:32
    Encompass everything into a 45 minute
  • 00:01:35
    video and it just doesn't do the job I
  • 00:01:38
    really think it helps to break these
  • 00:01:40
    issues down into situations like we do
  • 00:01:44
    here there's no question because when
  • 00:01:46
    you break them down into smaller pieces
  • 00:01:48
    they become more relevant and people say
  • 00:01:51
    oh my gosh that's how I was feeling but
  • 00:01:53
    when you just cover the big broad topics
  • 00:01:55
    everyone says yeah yeah I know I
  • 00:01:57
    understand it but maybe that's not an
  • 00:01:59
    issue for me
  • 00:02:00
    but when we get down to these granular
  • 00:02:02
    things and we literally say oh I did
  • 00:02:05
    this once so many people are like oh my
  • 00:02:07
    gosh that's what I was doing the whole
  • 00:02:09
    time and I never really saw it so I'm
  • 00:02:11
    really glad that we are just going into
  • 00:02:13
    greater and greater detail to get to
  • 00:02:15
    every single possible situation that can
  • 00:02:17
    happen yeah I would agree and for Action
  • 00:02:20
    bias uh the way we're going to open the
  • 00:02:21
    show here is by you know we always try
  • 00:02:24
    to Define terms and so Rob this is uh an
  • 00:02:27
    outline you put together so I'm going to
  • 00:02:29
    have you go ahead and Define terms here
  • 00:02:32
    then we'll throw out a few
  • 00:02:33
    examples of action bias that you might
  • 00:02:37
    experience other people doing in real
  • 00:02:40
    life and then we'll kind of switch it
  • 00:02:42
    back over to how it's relevant to
  • 00:02:43
    trading so Rob go ahead and start us off
  • 00:02:47
    here um how if you say the word action
  • 00:02:50
    bias not everybody really knows what
  • 00:02:52
    you're referring to what exactly are you
  • 00:02:53
    referring to here that's a great place
  • 00:02:56
    to start so there's actual a lot of
  • 00:02:58
    study out there on on action bias if you
  • 00:03:01
    type it in into Google or wherever you
  • 00:03:03
    go for search engine type in action bias
  • 00:03:05
    you'll see that this phenomenon has been
  • 00:03:08
    studied by social scientists and they've
  • 00:03:11
    really dived into why this is a thing
  • 00:03:15
    and basically when we talk about action
  • 00:03:16
    bias is when you have a
  • 00:03:19
    situation that the decision is not clear
  • 00:03:22
    of what to
  • 00:03:24
    do a lot of us tend to act first instead
  • 00:03:29
    of sit back and really think about it
  • 00:03:32
    and let's talk about why we do that as
  • 00:03:34
    human beings because the we're really
  • 00:03:36
    thinking about the after effects when I
  • 00:03:39
    was raising my kids I'm going to spend a
  • 00:03:40
    lot of time on this episode talking
  • 00:03:43
    about raising my kids because I really
  • 00:03:45
    want to show the programming that goes
  • 00:03:46
    into all of us but you know I always
  • 00:03:50
    told my kids look you're never choosing
  • 00:03:52
    what you're choosing at the moment
  • 00:03:54
    you're always choosing the consequence
  • 00:03:56
    down the road so I'd say something like
  • 00:03:59
    and again these the kids were like 5 six
  • 00:04:01
    years old I said hey if there's like 10
  • 00:04:02
    Donuts on the table and you decide to
  • 00:04:05
    eat all of them you're not really
  • 00:04:08
    deciding to eat those duts what you're
  • 00:04:10
    deciding is you're going to feel sick
  • 00:04:13
    you know 12 hours later and if you keep
  • 00:04:16
    doing it you're going to get overweight
  • 00:04:18
    and your bones and muscles are going to
  • 00:04:19
    hurt and all that stuff so I really
  • 00:04:21
    wanted to teach my kids you're choosing
  • 00:04:24
    the consequence now we all understand
  • 00:04:26
    that we all understand that as human
  • 00:04:28
    beings for the most part and so when we
  • 00:04:31
    get into the action
  • 00:04:33
    bias we start to think about the
  • 00:04:35
    consequences of not acting I'm going to
  • 00:04:40
    use an analogy I read online look I
  • 00:04:43
    actually fact checked this right before
  • 00:04:44
    the episode and it is not factually true
  • 00:04:48
    so again I'm I'm fully understanding
  • 00:04:51
    this but I want to give this example to
  • 00:04:53
    really give you an idea of action bias
  • 00:04:56
    let's talk about taking a penalty kick
  • 00:04:58
    in soccer
  • 00:05:00
    all right let's say you are the goalie
  • 00:05:03
    you are the
  • 00:05:05
    goalie and let's say that you know that
  • 00:05:08
    this this one uh kicker typically kicks
  • 00:05:12
    it down the
  • 00:05:13
    center so you decide that you're not
  • 00:05:16
    going to move at
  • 00:05:19
    all now as you're sitting on that line I
  • 00:05:22
    want you to pit yourself you're the
  • 00:05:23
    goalie you're on the line and you know
  • 00:05:27
    okay this kicker I think the best odds
  • 00:05:30
    are I stay right here in the center and
  • 00:05:32
    I don't move at all there's 50,000
  • 00:05:35
    people in the stands your family's there
  • 00:05:38
    you're going to go out for some drinks
  • 00:05:39
    and fun afterwards if you are the hero
  • 00:05:42
    if you can stop this goal the guy starts
  • 00:05:45
    to come towards the ball starts to kick
  • 00:05:47
    it what are you
  • 00:05:49
    thinking I know what I would be thinking
  • 00:05:53
    I would be
  • 00:05:54
    thinking if this guy kicks it to the
  • 00:05:57
    left or right and I don't move at all
  • 00:06:00
    I'm going to be humiliated so all of a
  • 00:06:03
    sudden my brain is going to do this
  • 00:06:04
    thing that says Hey I want to avoid this
  • 00:06:07
    humiliation I need to choose left or
  • 00:06:10
    right to jump and so just for that
  • 00:06:12
    reason I take action because look we've
  • 00:06:15
    all seen penalty kicks they're very
  • 00:06:18
    difficult to stop if you dive left and
  • 00:06:20
    the player shoots it to the right
  • 00:06:22
    there's really no shame in that but if
  • 00:06:24
    you just sat there and did nothing oh
  • 00:06:27
    the shame would just be overwhelming so
  • 00:06:30
    because of that feeling you would want
  • 00:06:33
    to dive left or right now here is the
  • 00:06:36
    actual um numbers of this so there is no
  • 00:06:40
    statistical benefit for a goalie to
  • 00:06:42
    stand still but there is a
  • 00:06:45
    statistical um Edge if you are the
  • 00:06:48
    penalty kicker to just kick it right
  • 00:06:50
    down the middle for this exact reason
  • 00:06:53
    because the goalie is most likely going
  • 00:06:55
    to dive left or right because they don't
  • 00:06:57
    want to just sit there but only 14% of
  • 00:07:00
    kicks are down the center and most of
  • 00:07:02
    those end up going in but think about
  • 00:07:05
    the kicker think about if you were the
  • 00:07:08
    kicker you've got 50,000 people
  • 00:07:10
    screaming the game is on the line if you
  • 00:07:13
    just kick it right down the center and
  • 00:07:15
    the goalie doesn't move and just catches
  • 00:07:17
    it you will be a laughing stock so you
  • 00:07:21
    decide you know what I know my sta
  • 00:07:24
    statistics are best you're shooting it
  • 00:07:25
    down the middle but I've got to at least
  • 00:07:27
    aim left or right this this is action
  • 00:07:30
    bias in a nutshell and you can see on
  • 00:07:32
    both sides of this uh situation we have
  • 00:07:36
    two people in opposite situations and
  • 00:07:38
    they both feel the need to take action
  • 00:07:41
    because they know that the uh the
  • 00:07:43
    embarrassment or the pain of not taking
  • 00:07:47
    action is greater Patrick what do you
  • 00:07:49
    think about that if I was the goalie I
  • 00:07:51
    would just show the shooter my ass and
  • 00:07:53
    my balls and hope he just was laughing
  • 00:07:55
    too hard to shoot an accurate shot but I
  • 00:07:58
    know what you're saying though it's uh
  • 00:07:59
    so this go this goes into a couple
  • 00:08:01
    different categories that we're talking
  • 00:08:03
    about today mine are going to be
  • 00:08:05
    different but I'll tell you how like in
  • 00:08:06
    your situation yours was more um you
  • 00:08:10
    know what is this going to do to my
  • 00:08:12
    reputation how is this going to make me
  • 00:08:14
    look in front of other people now when
  • 00:08:19
    you're trading this can or cannot be a
  • 00:08:24
    factor if you're just trading for
  • 00:08:25
    yourself and nobody's looking well then
  • 00:08:26
    it doesn't matter but maybe you're
  • 00:08:28
    trading for for a prop firm and you're
  • 00:08:31
    worried about what they're going to
  • 00:08:32
    think if you just sit there and do
  • 00:08:34
    nothing for a month or U maybe you have
  • 00:08:36
    a signal service and people are paying
  • 00:08:39
    you to give them trades and you take you
  • 00:08:42
    know some days off because there's no
  • 00:08:43
    trades to be had but they're like what
  • 00:08:45
    the hell why aren't you give any trades
  • 00:08:47
    so there's there's pressure there really
  • 00:08:49
    no matter what you're doing um so I
  • 00:08:52
    think that's a really great example one
  • 00:08:54
    of the actions I want to give is a Vegas
  • 00:08:56
    example because that's you know that's
  • 00:08:58
    what I knew for so along and I've
  • 00:09:00
    brought this up before but this is just
  • 00:09:02
    somebody who always feels like they need
  • 00:09:04
    to be doing something and I don't know
  • 00:09:06
    if we cover this in the extrovert
  • 00:09:08
    episode or not uh but in Vegas we call
  • 00:09:12
    them action junkies so if you're sitting
  • 00:09:14
    at a Texas hold them table and you have
  • 00:09:16
    that guy there that just wants to play
  • 00:09:17
    every single hand because if not then
  • 00:09:19
    you know maybe they just they don't feel
  • 00:09:21
    stimulated maybe they don't feel like
  • 00:09:23
    their time is
  • 00:09:24
    Justified and then in the sports book
  • 00:09:26
    you have those people to where like a
  • 00:09:28
    okay let's say Monday Night Football
  • 00:09:31
    great example you know people ask me hey
  • 00:09:33
    you know you got to play for Monday
  • 00:09:34
    Night Football what are you doing I'm
  • 00:09:35
    like oh you know I have no Advantage
  • 00:09:37
    there I'm not playing the game like and
  • 00:09:40
    they're like what why it's it's Monday
  • 00:09:42
    Night Football bro it's the only game on
  • 00:09:45
    why do you not have a bet and they they
  • 00:09:47
    can't process this they can't understand
  • 00:09:49
    this so you know there's just people who
  • 00:09:52
    are just hardwired to always need to be
  • 00:09:54
    taking action of some type but is this
  • 00:09:59
    the best move in the trading world you
  • 00:10:01
    know we're going to get further into
  • 00:10:02
    that but uh but those are probably my
  • 00:10:05
    best examples I guess from personal
  • 00:10:06
    experience Rob uh do you have any more
  • 00:10:08
    examples before we move on to the kind
  • 00:10:10
    of the why and the solution portions yes
  • 00:10:13
    I actually have one more example that I
  • 00:10:15
    think is just it blew me away um when I
  • 00:10:18
    did this in my life and then I have this
  • 00:10:20
    conversation with any Trader I have
  • 00:10:22
    that's going from they had their their
  • 00:10:25
    job or their business and they're
  • 00:10:26
    trading on the side and they've done
  • 00:10:28
    well enough on on their trading that
  • 00:10:30
    they want to either quit their job or or
  • 00:10:32
    work less and they're always so excited
  • 00:10:35
    Rob I this has been a goal of mine for a
  • 00:10:37
    long time I wanted to be able to quit my
  • 00:10:40
    job and trade full-time and I always
  • 00:10:42
    reach out to him and say hey you don't
  • 00:10:44
    want to do
  • 00:10:46
    this and every time they're like what
  • 00:10:48
    are you talking about this has been my
  • 00:10:50
    goal and I said look let me tell you why
  • 00:10:52
    you don't want to do this you are used
  • 00:10:54
    to going to a
  • 00:10:55
    job and working and doing work and with
  • 00:10:59
    that work you ended up getting a
  • 00:11:02
    paycheck I remember when I was shifting
  • 00:11:04
    into becoming a Trader I really thought
  • 00:11:07
    oh I've got to work I need to work hard
  • 00:11:11
    in order to make a lot of money as a
  • 00:11:13
    Trader and I remember that I would be uh
  • 00:11:16
    downstairs in my basement or I'd drive
  • 00:11:18
    all the way down to the Maverick office
  • 00:11:20
    and I'd come home my wife would say hey
  • 00:11:22
    did you make any trades and I'd say no I
  • 00:11:23
    didn't make any trades today now I want
  • 00:11:27
    you just to think about this my wife
  • 00:11:29
    wife who is you know a a new
  • 00:11:32
    mom I'm leaving the house not helping
  • 00:11:34
    her at all going downtown to the
  • 00:11:36
    Maverick office and sitting there all
  • 00:11:39
    day long and not making a trade
  • 00:11:42
    whatsoever and then coming home be like
  • 00:11:44
    I didn't make a
  • 00:11:45
    trade obviously that kind of stuff puts
  • 00:11:48
    some pressure on you to take action
  • 00:11:51
    because you think I need to work hard
  • 00:11:54
    cuz everything else in our life we work
  • 00:11:55
    hard and we get the results like and a
  • 00:11:58
    lot of times we equate that to to
  • 00:11:59
    physical
  • 00:12:00
    work trading is one of the only
  • 00:12:03
    professions where you make less the
  • 00:12:06
    harder you work and in one of our first
  • 00:12:08
    episodes we made a joke that we should
  • 00:12:10
    get some T-shirts to say trade
  • 00:12:13
    harder that's not how trading works so
  • 00:12:17
    when we equate this action taking action
  • 00:12:20
    to becoming successful of something and
  • 00:12:22
    making
  • 00:12:22
    money we're really tying our hands to
  • 00:12:26
    not sit on them and to actually go and
  • 00:12:28
    do things
  • 00:12:29
    yeah and I remember you're giving those
  • 00:12:30
    analogies in the past and it's so right
  • 00:12:34
    like I can imagine like you and I as
  • 00:12:35
    like some young hot shot Traders we just
  • 00:12:37
    got hired on to a trading room and we
  • 00:12:39
    we're talking like bro I'm going to
  • 00:12:41
    outwork you I'm going to trade so much
  • 00:12:42
    harder than you and that's really you're
  • 00:12:44
    right this is the only profession I can
  • 00:12:46
    think of where it just doesn't work that
  • 00:12:48
    way now you do need to put it in the
  • 00:12:49
    work to test your system and constantly
  • 00:12:52
    improve on your system that's where the
  • 00:12:54
    work really comes in um so it's not like
  • 00:12:56
    you can just be super lazy and step up
  • 00:12:58
    and do well you know what actually your
  • 00:13:01
    uh Flat Earth trading kind of spoke to
  • 00:13:03
    that you know you could just be super
  • 00:13:05
    lazy and still do fairly well but you're
  • 00:13:09
    never really going to be able to
  • 00:13:10
    optimize things and get there quicker if
  • 00:13:12
    you do it that way of course you know
  • 00:13:14
    work has to come from somewhere I just
  • 00:13:17
    had this thought pop into my brain is
  • 00:13:18
    you and I young traders in a trading
  • 00:13:21
    floor and you being like dude I made 25
  • 00:13:24
    trades today I'm like oh yeah I made 33
  • 00:13:26
    today and then we're both trying to
  • 00:13:27
    outdo each other for how many trades
  • 00:13:30
    like that's just ridiculous that's not
  • 00:13:32
    how this business works yeah and then
  • 00:13:34
    two years later we're both out on the
  • 00:13:35
    street and I'm playing harmonica and
  • 00:13:36
    you're tap dancing for money yeah I can
  • 00:13:38
    see it now all right but enough
  • 00:13:39
    fanfiction let's let's go forward here
  • 00:13:42
    because yeah it's it's so hard to get
  • 00:13:46
    it's so hard for your average person to
  • 00:13:47
    wrap their head around you know I I just
  • 00:13:49
    think of all of the incorrect things I
  • 00:13:52
    thought when I first started this
  • 00:13:54
    business I kept thinking man I'm really
  • 00:13:56
    going to outwork every body else and uh
  • 00:14:00
    it's funny I I kind of ended up doing
  • 00:14:02
    that because I had to create a brand new
  • 00:14:04
    system from scratch but you're right in
  • 00:14:06
    the actual Act of trading you know being
  • 00:14:10
    an action junkie works against you more
  • 00:14:13
    than for you because not every trade is
  • 00:14:15
    a good one and so what I think you know
  • 00:14:19
    the way I want to relate this to some
  • 00:14:20
    people is I think what they will
  • 00:14:23
    do and maybe you can speak to this more
  • 00:14:26
    Rob because you've seen it so much more
  • 00:14:27
    than I have with your Traders
  • 00:14:29
    but when things are slow
  • 00:14:33
    especially and their system is not
  • 00:14:35
    giving them trades they will start to
  • 00:14:38
    invent reasons to take trades anyway
  • 00:14:42
    whether that is um dropping down to a
  • 00:14:45
    lower time frame which I have
  • 00:14:46
    recommended in the past use it sparingly
  • 00:14:49
    cut your risk in half but don't do it
  • 00:14:53
    just for the sake of taking a trade
  • 00:14:54
    because you feel like you need to or you
  • 00:14:58
    feel like if you don't take some kind of
  • 00:15:00
    action then you're not actually trading
  • 00:15:02
    you know trading is all about the moves
  • 00:15:04
    you make and also the moves you don't
  • 00:15:08
    make and there is a time and a place for
  • 00:15:10
    each and it's during those times that we
  • 00:15:13
    fall back to the programming we received
  • 00:15:15
    as children and I just remember you know
  • 00:15:18
    my dad always you know talking about oh
  • 00:15:21
    you got to take action you got to do
  • 00:15:23
    something and you know we hear all these
  • 00:15:25
    quotes like you only miss the shots that
  • 00:15:27
    you don't take so we have been
  • 00:15:29
    programmed from children to take action
  • 00:15:33
    and looking back at my own kids I I
  • 00:15:37
    raised them I was very deliberate with
  • 00:15:40
    how I raised my kids and I will admit
  • 00:15:42
    this I was very deliberate with my
  • 00:15:45
    programming I was a different kind of
  • 00:15:48
    Dad when I was younger than most dads is
  • 00:15:50
    that there were certain things I wanted
  • 00:15:53
    my kids to really get and understand and
  • 00:15:55
    so I was going to program them I was
  • 00:15:58
    liate on what I said how I said it when
  • 00:16:03
    I said it and one of the things that I
  • 00:16:06
    tried to really get them to understand
  • 00:16:10
    is to take action and so our family has
  • 00:16:13
    a motto called Ready fire aim people I
  • 00:16:16
    say wait no rob you got that wrong no I
  • 00:16:18
    didn't ready fire aim take action adjust
  • 00:16:23
    your course after cuz the worst thing to
  • 00:16:25
    do is sit there and do
  • 00:16:26
    nothing also we had a saying my family
  • 00:16:30
    action beats in action every single time
  • 00:16:33
    so I've been programming my kids to go
  • 00:16:37
    out into the world just like we were all
  • 00:16:38
    programmed as kids when you get into
  • 00:16:41
    trading boy it really is going to hurt
  • 00:16:44
    you sometimes so I I just want to point
  • 00:16:47
    that out that you've been programmed for
  • 00:16:49
    action and it's not wrong it's not wrong
  • 00:16:53
    at all and in fact there's wonderful
  • 00:16:55
    wonderful stories in my life in your
  • 00:16:57
    life and everyone's life of people that
  • 00:16:59
    did take that chance and did take action
  • 00:17:02
    but we have to recognize when it's a
  • 00:17:05
    negative in our trading yeah and would
  • 00:17:07
    you say this is more of a societal thing
  • 00:17:09
    depending on where you're from because I
  • 00:17:11
    think you and I are two Americans
  • 00:17:12
    talking to each other so this makes a
  • 00:17:14
    lot of sense you know taking action is
  • 00:17:16
    so much better than taking in action at
  • 00:17:19
    the end of the day um but that's just
  • 00:17:21
    how you and I were probably raised too
  • 00:17:23
    maybe even not by our parents but just
  • 00:17:24
    by society as a whole you know where
  • 00:17:26
    you're supposed to take chances and and
  • 00:17:29
    and taking risks and chances are
  • 00:17:31
    rewarded even when they fail you know
  • 00:17:35
    every time I go to Europe and talk to
  • 00:17:36
    people the majority of them just don't
  • 00:17:39
    feel this way unless they've seen us do
  • 00:17:42
    it and they want in on that lifestyle
  • 00:17:45
    but the overall Vibe of a a place like
  • 00:17:50
    Europe I hate to pick on Europe because
  • 00:17:51
    you know there's like I said there's
  • 00:17:52
    there's a Yin Andy Yang to this but is
  • 00:17:55
    to really take a lot less chances and
  • 00:17:58
    and just spend more of your time
  • 00:18:00
    enjoying life as opposed to chasing
  • 00:18:02
    greatness or chasing Excellence you know
  • 00:18:04
    like we tend to do in in North America I
  • 00:18:08
    definitely don't want to speak for
  • 00:18:09
    Europeans um in general but let me just
  • 00:18:12
    give you I'm sitting here with a big
  • 00:18:14
    grin on my face because I was very de
  • 00:18:17
    deliberate with my two children very
  • 00:18:20
    deliberate I try to program them both my
  • 00:18:24
    kids don't love to take action so look
  • 00:18:28
    maybe I screwed it up but you know what
  • 00:18:32
    I am convinced and this is where you
  • 00:18:34
    know we get into all of this um training
  • 00:18:37
    psychology I'm convinced that nature is
  • 00:18:42
    greater than nurture I think who you are
  • 00:18:45
    as a person and that is in your
  • 00:18:47
    DNA is is actually stronger than the
  • 00:18:50
    programming you received as a child so
  • 00:18:52
    when you take a look at um you know all
  • 00:18:56
    around the world or inside of some
  • 00:18:57
    families yes there absolutely going to
  • 00:18:59
    be some cultural stuff going on some
  • 00:19:01
    programming but in the end I don't
  • 00:19:04
    really think it matters too much because
  • 00:19:06
    I think nature is greater We Are Who We
  • 00:19:08
    Are it's in our DNA that's it
  • 00:19:11
    interesting okay so I would even say
  • 00:19:14
    even your most passive Trader has
  • 00:19:16
    probably experienced this at some point
  • 00:19:21
    and it I think I think more it comes
  • 00:19:23
    down to the fear of what might happen if
  • 00:19:27
    you don't take take action um and you
  • 00:19:30
    know this can fall into fomo this can
  • 00:19:33
    fall into you know it just feels weird
  • 00:19:36
    to be inactive for this long and it just
  • 00:19:39
    doesn't seem right um you know what do
  • 00:19:42
    you think is going through most people's
  • 00:19:45
    head when they are experiencing these
  • 00:19:49
    lulls and really wanting to take action
  • 00:19:52
    even though they know they probably
  • 00:19:56
    shouldn't I think it is thinking about
  • 00:19:59
    the consequences of inaction that is
  • 00:20:02
    probably going to do the most damage uh
  • 00:20:04
    you mentioned one fomo we have a whole
  • 00:20:07
    episode on fomo can you imagine if you
  • 00:20:10
    didn't take action you did exactly what
  • 00:20:12
    you planned on doing and then the market
  • 00:20:15
    did something you didn't expect it to do
  • 00:20:17
    and ran away from you you would
  • 00:20:20
    absolutely kick yourself so when you're
  • 00:20:22
    sitting there in this period of inaction
  • 00:20:25
    which you have determined that is the
  • 00:20:28
    best thing for you to do your mind is
  • 00:20:30
    racing with all the things that may
  • 00:20:33
    happen that's going to make your
  • 00:20:35
    inaction look bad and that's what's
  • 00:20:38
    really going to get you to crack in the
  • 00:20:40
    situation is you're going to be playing
  • 00:20:42
    through all of those possibilities while
  • 00:20:44
    you sit there and be patient and wait
  • 00:20:46
    yeah and who hasn't experienced this at
  • 00:20:49
    some point in time and I think we talked
  • 00:20:51
    about this too this might just be a
  • 00:20:52
    greatest hits episode at the end of the
  • 00:20:54
    day Rob because I'm thinking back to all
  • 00:20:55
    the times we spoke about this you and I
  • 00:20:58
    but
  • 00:20:59
    where let's say your system gave you the
  • 00:21:02
    trade and you know all you got all green
  • 00:21:04
    lights but it was kind of like barely
  • 00:21:07
    all green lights and in your mind you're
  • 00:21:10
    still kind of hesitant and scared so
  • 00:21:12
    you're like okay maybe I just shouldn't
  • 00:21:13
    do it and it turns out it was the most
  • 00:21:15
    perfect signal of all time and then
  • 00:21:17
    after your first take profit it gave you
  • 00:21:19
    another 600 Pips before your exit
  • 00:21:21
    indicator even hinted at closing out it
  • 00:21:24
    was one of those like year changing
  • 00:21:27
    trades and you're system gave it to you
  • 00:21:31
    but you still sat on your hands and I
  • 00:21:33
    know this is kind of the opposite of
  • 00:21:35
    what we're talking about but those
  • 00:21:36
    memories you know it's like I said it's
  • 00:21:38
    not the losers that stick in my head
  • 00:21:40
    it's the winners that I should have
  • 00:21:41
    taken but didn't which do and so now
  • 00:21:46
    every time I see even a little something
  • 00:21:48
    that looks good I'm going to want to at
  • 00:21:50
    least explore it you know because now
  • 00:21:52
    okay a loss is a loss but a win could be
  • 00:21:54
    a really really big win and you know and
  • 00:21:57
    that I I want that life-changing
  • 00:21:59
    experience because I missed out on it
  • 00:22:01
    last time well that is definitely going
  • 00:22:03
    to be a recency bias because if that
  • 00:22:05
    happens to you once you're going to take
  • 00:22:07
    that baggage into the next time you
  • 00:22:10
    decide that inaction is the best thing
  • 00:22:13
    to do you're going to be carrying that
  • 00:22:15
    baggage and that's going to make it even
  • 00:22:16
    more difficult to sit there and be
  • 00:22:19
    patient so yes we go through all of
  • 00:22:22
    these scenarios and when our when our uh
  • 00:22:24
    hands are inactive and I'm just using
  • 00:22:26
    hands as a reference to to action your
  • 00:22:30
    brain is still very active and so what
  • 00:22:33
    happens is a lot of times the action is
  • 00:22:36
    to release the pressure that the brain
  • 00:22:39
    is feeling because your brain has so
  • 00:22:42
    much activity going on with all the what
  • 00:22:44
    ifs so what can happen taking action is
  • 00:22:48
    a relief valve to all of that anxiety
  • 00:22:52
    that you've built up inside yourself and
  • 00:22:54
    that's really why people have this
  • 00:22:56
    action bias it's because they feel
  • 00:22:59
    discomfort they feel discomfort with the
  • 00:23:01
    situation they're in taking action
  • 00:23:04
    relieves that discomfort even if it's
  • 00:23:07
    the wrong decision because doing nothing
  • 00:23:11
    is sometimes more difficult than doing
  • 00:23:13
    something yeah you know it's like when
  • 00:23:15
    we become Traders like okay I am a
  • 00:23:18
    Trader now Traders trade Traders don't
  • 00:23:21
    just sit there and do nothing you know
  • 00:23:23
    because that's how we're programmed
  • 00:23:24
    before we enter the game that's why your
  • 00:23:25
    wife never understood that because
  • 00:23:27
    that's a very logical way to think about
  • 00:23:30
    things but you know it's I want to
  • 00:23:33
    reiterate this point especially for
  • 00:23:34
    newer traders that is not what trading
  • 00:23:36
    is trading is very different and very
  • 00:23:38
    nuanced this way um so moving
  • 00:23:43
    into the solutions part are you ready
  • 00:23:45
    for Solutions yes and before we jump
  • 00:23:48
    into that I just had this dumb analogy
  • 00:23:50
    maybe it's a dumb analogy maybe it's a
  • 00:23:51
    genius we'll see I just had this analogy
  • 00:23:54
    of fishing you know if you take a look
  • 00:23:56
    as trading like fishing
  • 00:23:59
    you do your research of where the fish
  • 00:24:01
    are um you throw in your your bait or
  • 00:24:04
    whatever it is you're fishing with and
  • 00:24:07
    you see what you get and and some days
  • 00:24:09
    you get some bites some days you don't
  • 00:24:12
    get any bites some days you get a couple
  • 00:24:14
    fish and sometimes you just you just hit
  • 00:24:17
    gold and everything's going your way and
  • 00:24:18
    you get a whole bunch of
  • 00:24:20
    fish that's how trading is and and I I
  • 00:24:24
    don't know if that's the correct analogy
  • 00:24:25
    for where we are in this podcast episode
  • 00:24:29
    but you really have to approach it is
  • 00:24:31
    that look I'm going to do the
  • 00:24:33
    fishing based on my rules and if I get
  • 00:24:37
    fish I do I get them if I don't I don't
  • 00:24:41
    that's the action you can take you have
  • 00:24:43
    no control over whether that fish bites
  • 00:24:46
    that hook you have none whatsoever yeah
  • 00:24:49
    and I guess bringing it back to actual
  • 00:24:50
    trading you know you guys know you know
  • 00:24:51
    where I am in my career now you know 15
  • 00:24:53
    years in I'm kind of bored and just kind
  • 00:24:55
    of over it at this point but I still do
  • 00:24:57
    it because it's profitable you know for
  • 00:24:58
    me if there's nothing to do I'm kind of
  • 00:25:00
    happy because that's just less work for
  • 00:25:02
    me to do even though boohoo it's a
  • 00:25:04
    whopping 5 10 minutes but then I can
  • 00:25:05
    just kind of get on with the rest of my
  • 00:25:07
    day so I mean maybe that's kind of how I
  • 00:25:09
    justify it maybe that's one way some of
  • 00:25:11
    you older veteran Traders can look at
  • 00:25:13
    this um but in terms of
  • 00:25:16
    solutions uh I have really one way to
  • 00:25:22
    kind of process
  • 00:25:23
    this and if it helps it helps uh but Rob
  • 00:25:26
    you have a lot more let me just go ahead
  • 00:25:27
    and start with with mine it I just want
  • 00:25:30
    you to understand that like we've been
  • 00:25:32
    talking about before trading is
  • 00:25:34
    different than pretty much everything
  • 00:25:35
    else and understand too that even if you
  • 00:25:39
    don't put down a single trade for a
  • 00:25:41
    month maybe two and this this is not
  • 00:25:44
    going to happen often but I have had to
  • 00:25:46
    happen to me you actually are
  • 00:25:49
    trading when you don't trade at all you
  • 00:25:53
    actually are still trading it's all the
  • 00:25:56
    same thing clicking a button and putting
  • 00:25:59
    in trades and risking money is trading
  • 00:26:02
    and sitting back and doing nothing until
  • 00:26:04
    your system tells you to and being
  • 00:26:05
    patient and understanding the process
  • 00:26:07
    and embracing the long game is also
  • 00:26:10
    trading so even during moments of
  • 00:26:14
    inaction it actually is action taking if
  • 00:26:19
    that makes any sense not taking action
  • 00:26:21
    is action that's not some Kung Fu weird
  • 00:26:23
    that's just how trading is so maybe
  • 00:26:26
    if you can put that in your mind maybe
  • 00:26:27
    it'll ease your mind a little bit going
  • 00:26:29
    forward and reduce that anxiety that
  • 00:26:32
    comes with you know showing up every day
  • 00:26:34
    and not doing anything and you know and
  • 00:26:36
    maybe going forward it won't seem so
  • 00:26:38
    frustrating and you'll still be
  • 00:26:40
    motivated to show up every day even
  • 00:26:43
    though you're not doing anything because
  • 00:26:45
    let me tell you that's really the only
  • 00:26:47
    way to play this if you want to be in
  • 00:26:50
    that very small one% of people who
  • 00:26:54
    actually get good at this and stay good
  • 00:26:55
    at this for a while that's the only
  • 00:26:59
    way I can explain it to anybody Rob do
  • 00:27:01
    you have better ways you have a lot of
  • 00:27:02
    options here I see that look I love what
  • 00:27:05
    you just said and people ask me you know
  • 00:27:08
    what I do for a living and there oh you
  • 00:27:11
    know how many hours a day do you work um
  • 00:27:14
    this is what I always say I'm always
  • 00:27:17
    working I am
  • 00:27:19
    literally always taking in data I am
  • 00:27:23
    always reading I am always studying I'm
  • 00:27:26
    I'm looking at politics yes I like
  • 00:27:29
    politics it's something that I find
  • 00:27:30
    interesting but inside of that politics
  • 00:27:33
    I'm getting Market data I'm getting
  • 00:27:35
    Market data I am sucking in data all the
  • 00:27:39
    time everywhere I go I'm looking oh what
  • 00:27:43
    stores are busy right now why am I
  • 00:27:44
    looking at that because that might give
  • 00:27:46
    me a little bit of an edge on some stock
  • 00:27:48
    trading I want to do so look I am always
  • 00:27:53
    trading always always and I want to go
  • 00:27:56
    back to this fishing analogy because
  • 00:27:58
    it's actually going to turn out to be a
  • 00:27:59
    pretty good analogy just think about
  • 00:28:02
    somebody who is a a fisherman and that
  • 00:28:05
    is their
  • 00:28:06
    livelihood and they need to catch fish
  • 00:28:09
    or they
  • 00:28:10
    starve now yes they could sit
  • 00:28:13
    out all day long at the lake or at the
  • 00:28:16
    river whatever fishing wherever you're
  • 00:28:19
    fishing and just throw in a hook and
  • 00:28:21
    just do that constantly but that's not
  • 00:28:23
    going to yield the best results so
  • 00:28:26
    imagine this Fisher person
  • 00:28:28
    I think that's the correct term now
  • 00:28:30
    Fisher
  • 00:28:31
    aisher um let's say that they go home
  • 00:28:34
    and when they're home they're tying
  • 00:28:36
    different kind of of uh lures they're
  • 00:28:39
    tying different kind of flies they're
  • 00:28:40
    researching uh what is the best reel
  • 00:28:43
    what is the best net and then they're
  • 00:28:45
    studying you know water patterns where
  • 00:28:47
    are the water patterns the best at this
  • 00:28:49
    time of the year this
  • 00:28:51
    seasonality do you see that this Fisher
  • 00:28:56
    and again I think that's the right word
  • 00:28:57
    but I'll just use that um is constantly
  • 00:29:01
    working they're always working they are
  • 00:29:03
    always fishing but if you
  • 00:29:06
    equate having the bait in the water is
  • 00:29:09
    the only time you're fishing you aren't
  • 00:29:11
    understanding the whole process of this
  • 00:29:14
    profession so I'm going to say the same
  • 00:29:17
    thing with trading if you think that
  • 00:29:20
    trading is when you have your capital in
  • 00:29:23
    the
  • 00:29:25
    market you are missing the whole
  • 00:29:28
    profession that is the least timec
  • 00:29:32
    consuming part that's actually like 1 to
  • 00:29:35
    2% of what being a Trader actually is
  • 00:29:39
    the rest of the time is to be constantly
  • 00:29:42
    thinking about these situations
  • 00:29:44
    constantly back testing constantly
  • 00:29:46
    thinking of new strategies new
  • 00:29:47
    indicators to use that is trading so you
  • 00:29:51
    can spend as much time as you want on
  • 00:29:53
    that and that brings out beautiful
  • 00:29:55
    results and we talked about working hard
  • 00:29:58
    harder trading harder that's when and
  • 00:30:00
    how you can trade harder but if you
  • 00:30:02
    think that you can just throw in the
  • 00:30:04
    hook into the water more times and be
  • 00:30:07
    successful you don't get it it's not
  • 00:30:09
    mermaid father it's
  • 00:30:12
    merman that's a a really great analogy
  • 00:30:17
    now that you've expanded on it because
  • 00:30:19
    really yeah it it's an all day thing if
  • 00:30:21
    you're sitting there improving your
  • 00:30:23
    system testing indicators looking up new
  • 00:30:26
    ways to do things
  • 00:30:28
    um you know just learning more about the
  • 00:30:31
    game itself I do this with investing
  • 00:30:33
    because I'm not an investor by trade I
  • 00:30:35
    had to get good at it I had to become
  • 00:30:38
    one of the most informed people out
  • 00:30:40
    there so I could explain it to other
  • 00:30:41
    people you're always doing something
  • 00:30:43
    you're always taking some type of action
  • 00:30:47
    whether or not it's in front of the
  • 00:30:48
    screen entering orders or closing out
  • 00:30:51
    trades yeah that's that's a perfect way
  • 00:30:53
    to put it you're still working you're
  • 00:30:54
    still being productive you're still
  • 00:30:56
    getting better and you're getting closer
  • 00:30:58
    and closer and closer to your goal it
  • 00:31:00
    doesn't always just involve the actual
  • 00:31:02
    AC of trading so I think that's a
  • 00:31:04
    perfect way to look at it look at the
  • 00:31:05
    whole thing and not just that one little
  • 00:31:07
    part let's go ahead and cover really
  • 00:31:11
    what we talked about is that when you
  • 00:31:13
    are in this situation where you have
  • 00:31:16
    said hey I'm not going to take
  • 00:31:18
    action and you start to feel discomfort
  • 00:31:22
    and this is where being self-aware comes
  • 00:31:24
    in hey I'm feeling some discomfort of in
  • 00:31:28
    action and I want to relieve that
  • 00:31:31
    discomfort with taking action I want to
  • 00:31:33
    make a tradeit even though I know I
  • 00:31:34
    shouldn't I want to change the stop even
  • 00:31:36
    though I know I shouldn't I want to take
  • 00:31:39
    action to relieve this pressure what do
  • 00:31:41
    you do when you're feeling that
  • 00:31:44
    pressure well the first thing you need
  • 00:31:46
    to do as much as you possibly can is to
  • 00:31:51
    predetermine the possible future
  • 00:31:54
    situations where taking no action is
  • 00:31:56
    best this is called future pacing and
  • 00:32:01
    you can use this is a sales tactic where
  • 00:32:03
    you actually if you're a salesperson
  • 00:32:06
    you'll actually tell the SE the person
  • 00:32:08
    what it is they're going to do in the
  • 00:32:10
    future you're going to say stuff like
  • 00:32:12
    hey you're not going to buy this today I
  • 00:32:14
    understand that but I you're definitely
  • 00:32:15
    going to be back here in a week buying
  • 00:32:17
    this from me once you go home and do the
  • 00:32:19
    research that's called future pacing
  • 00:32:21
    that's your telling the person what to
  • 00:32:22
    do you need to do this with yourself you
  • 00:32:25
    need to be like hey in these
  • 00:32:28
    situations these are the situations you
  • 00:32:31
    shouldn't trade so you should already be
  • 00:32:34
    watchful Andy for these situations and
  • 00:32:38
    you should have rules built around
  • 00:32:40
    those if you start to feel that
  • 00:32:43
    pressure how can you release the
  • 00:32:47
    pressure without blowing it by taking
  • 00:32:49
    action well here's just a few
  • 00:32:52
    ideas demo trade this is a great method
  • 00:32:57
    especially for for people in the
  • 00:32:58
    beginning to release that pressure to
  • 00:33:01
    release the pressure and they say okay
  • 00:33:03
    look I I really want to act here I think
  • 00:33:06
    it's the best thing to do here so I'm
  • 00:33:08
    going to leave my real account doing
  • 00:33:10
    what I planned on doing and then I'm
  • 00:33:13
    going to demo trade my stupid idea to
  • 00:33:16
    see how it works look I know it's just
  • 00:33:19
    brain semantics who cares what happens
  • 00:33:21
    in a demo count but that is going to
  • 00:33:23
    release a little bit of the pressure and
  • 00:33:26
    especially if you do this in the the uh
  • 00:33:29
    the guys of hey you know what I'm going
  • 00:33:31
    to do this 20 times I'm going to stay
  • 00:33:34
    with my system over here with real money
  • 00:33:38
    but I'm going to demo trade my crazy
  • 00:33:40
    ideas over the next 20 times and then
  • 00:33:42
    I'm going to compare the results of my
  • 00:33:45
    demo account to my real account to see
  • 00:33:46
    if I want to make a
  • 00:33:48
    change these are all just lies that
  • 00:33:50
    you're telling yourself but you see that
  • 00:33:53
    with that lie that you just told
  • 00:33:55
    yourself your brain can cons Shi
  • 00:33:58
    it can be like oh okay this is now an AB
  • 00:34:02
    test I'm I'm doing something I'm going
  • 00:34:05
    to AB test it to see if me blowing my
  • 00:34:08
    rules early are actually beneficial to
  • 00:34:10
    me you've just taken the pressure off
  • 00:34:13
    look I know that's it's it's a lie to
  • 00:34:15
    yourself it's okay to lie to yourself if
  • 00:34:17
    it gives you the results you want
  • 00:34:19
    Patrick what do you think about that I
  • 00:34:20
    don't even think it's a lie I think it's
  • 00:34:22
    actually true because that is part of
  • 00:34:24
    the overall game let's take it back to a
  • 00:34:26
    goalie in soccer you know maybe you're
  • 00:34:28
    on a really good team and the opposition
  • 00:34:30
    barely gets any shots on goal so you're
  • 00:34:33
    mostly getting paid millions of dollars
  • 00:34:35
    to stand there you know and maybe people
  • 00:34:38
    might become critical of that and maybe
  • 00:34:39
    you feel like you're not really doing
  • 00:34:41
    your job because you're not contributing
  • 00:34:43
    to the team but what people don't know
  • 00:34:46
    is all of the stuff that happened that
  • 00:34:48
    week leading up to the actual match
  • 00:34:50
    itself you know there's a lot of
  • 00:34:55
    mind-numbingly tough work people don't
  • 00:34:58
    want to do that leads up to that moment
  • 00:35:01
    that gets you ready for those moments
  • 00:35:02
    where it is time to pull the trigger and
  • 00:35:05
    so like I said I think you nailed it so
  • 00:35:08
    good five minutes ago Rob if you just
  • 00:35:09
    take a more holistic view of that and
  • 00:35:12
    understand that trading is a lot of
  • 00:35:14
    things not just actually trading then I
  • 00:35:17
    think it's going to make a lot more
  • 00:35:18
    sense and it's it's really going to calm
  • 00:35:20
    you down during those inactive moments
  • 00:35:23
    I'm really glad you brought that back
  • 00:35:24
    around because I was envisioning all the
  • 00:35:27
    hate that you were going to get from
  • 00:35:28
    goalies when you said yeah they just sit
  • 00:35:31
    around and do nothing I thought uhoh
  • 00:35:34
    this could be potentially dangerous yeah
  • 00:35:36
    the really good ones kind of do um on on
  • 00:35:38
    certain days but you know a real soccer
  • 00:35:41
    fan understands you know that that's
  • 00:35:43
    that's part of it sometimes you do a lot
  • 00:35:45
    sometimes you do a little that's just
  • 00:35:47
    what it is I know the pro goalies are
  • 00:35:49
    constantly studying um penalty kicks you
  • 00:35:52
    know they know the numbers they know
  • 00:35:54
    that okay when Messi gets up he goes to
  • 00:35:57
    the left bottom corner 27% of the time
  • 00:36:00
    he goes here 12% of the time like they
  • 00:36:02
    know this stuff so look no hate to
  • 00:36:05
    goalies we we know you guys are awesome
  • 00:36:07
    I'm just kidding all right so that's one
  • 00:36:10
    of my ideas I have to to take the
  • 00:36:12
    pressure off by say I'm going to demo
  • 00:36:14
    trade my dumb ideas and keep my keep my
  • 00:36:18
    uh system intact over here and then I
  • 00:36:22
    can compare them the other thing I want
  • 00:36:25
    to bring up is removing the ability to
  • 00:36:27
    act and this is something that I had to
  • 00:36:29
    do in my life and I've told a lot of my
  • 00:36:32
    stories of when I was a younger Trader
  • 00:36:35
    over trading was a big problem for me
  • 00:36:37
    impulsive trading was a big problem for
  • 00:36:38
    me and so I couldn't get over it by
  • 00:36:42
    discipline I just couldn't manage it by
  • 00:36:44
    discipline so I had to put roadblocks in
  • 00:36:46
    my way so I literally couldn't take
  • 00:36:49
    action so if you are in a situation
  • 00:36:52
    where you're feeling like you want to
  • 00:36:54
    release that pressure by taking action
  • 00:36:56
    well the best thing you can do is remove
  • 00:36:59
    all the stimulus around you and remove
  • 00:37:01
    the ability so look if you don't ever
  • 00:37:05
    look at a quote so let's say you get
  • 00:37:07
    into a trade you get into pound Yen
  • 00:37:10
    you've got your stop you've got your
  • 00:37:11
    Target and it's just driving you crazy
  • 00:37:14
    to sit here and watch
  • 00:37:15
    it get rid of it get rid of the stimulus
  • 00:37:19
    I have Traders all the time that will
  • 00:37:21
    delete their trading apps they'll just
  • 00:37:23
    delete their trading apps off their
  • 00:37:24
    computer and off their um off their
  • 00:37:27
    phones
  • 00:37:28
    to where they literally can't now look I
  • 00:37:31
    know you can always download them back
  • 00:37:33
    so
  • 00:37:34
    yes there there's going to be some ways
  • 00:37:36
    for you to screw it up but what they do
  • 00:37:38
    is they basically remove the stimulus if
  • 00:37:41
    you remove the
  • 00:37:42
    stimulus you literally can't have those
  • 00:37:45
    feelings anymore because you don't even
  • 00:37:47
    know what's happening so Patrick have
  • 00:37:49
    you ever had anyone do that I'm pretty
  • 00:37:51
    sure I have because I told him to and
  • 00:37:53
    that's where I was going to kind of chip
  • 00:37:54
    in here this is something that I I
  • 00:37:56
    should have made a dedicated video or
  • 00:37:57
    podcast episode on back in the day but
  • 00:38:00
    it was just one of the points I made in
  • 00:38:02
    a separate video and I told everybody
  • 00:38:05
    because I know because especially as men
  • 00:38:08
    we all think this that as soon as we
  • 00:38:10
    start becoming a Trader we're going to
  • 00:38:13
    kind of have that Trader lifestyle you
  • 00:38:14
    know to where we got the app on our
  • 00:38:16
    phone and we're always checking our
  • 00:38:17
    trades and stuff like that I'm like guys
  • 00:38:19
    that is the dumbest thing you can
  • 00:38:21
    possibly do if you have any trading
  • 00:38:25
    platform apps on your phone get rid of
  • 00:38:28
    them now and I I guarantee as soon as I
  • 00:38:30
    said that 99% of people out there were
  • 00:38:32
    like what why I I'm a Trader I need to
  • 00:38:36
    have this app on my phone I'm like no
  • 00:38:39
    you don't maybe in absolute emergencies
  • 00:38:41
    but kind of like you said Rob in that
  • 00:38:42
    case you can just go ahead and download
  • 00:38:44
    it again but it is not doing you any
  • 00:38:47
    favors to sit there and look at it
  • 00:38:49
    especially if you are a daily chart
  • 00:38:51
    Trader Like We Are No Nonsense Forex you
  • 00:38:54
    only need to trade for 15 minutes a day
  • 00:38:55
    you only need to be there for 15 minutes
  • 00:38:57
    minutes a day if it's not in that
  • 00:38:58
    15-minute window what the hell are you
  • 00:39:01
    doing looking at your trades what net
  • 00:39:05
    benefit are you trying to gain spoiler
  • 00:39:08
    alert there isn't one so take that
  • 00:39:12
    off your phone and I'm so glad you
  • 00:39:14
    mentioned this too ra because there's
  • 00:39:16
    probably a lot of people listening to
  • 00:39:17
    this podcast right now that may not have
  • 00:39:19
    been with me back then or may not have
  • 00:39:20
    saw that video or may not have caught
  • 00:39:22
    what I said but let me reiterate it
  • 00:39:24
    again take all trading unless you trade
  • 00:39:27
    on your phone and you don't have a
  • 00:39:29
    laptop that's the only exception I'll
  • 00:39:30
    make here get those apps off your off
  • 00:39:33
    your phone to prevent you from ever
  • 00:39:36
    looking at it when you shouldn't be
  • 00:39:38
    looking at it because we all know what
  • 00:39:40
    that can lead to and you can download
  • 00:39:42
    that app years later when you are a rock
  • 00:39:46
    solid Trader that has no no hint of
  • 00:39:50
    breaking your rules then it's okay but I
  • 00:39:53
    agree with you Patrick at first at first
  • 00:39:55
    it's really going to hurt you
  • 00:39:57
    all right one of the things I had to do
  • 00:39:59
    and I've told the story many times so
  • 00:40:01
    I'm not going to spend a lot of time
  • 00:40:02
    telling you but I would give my wife the
  • 00:40:05
    security card I needed to log into my
  • 00:40:07
    account anytime I wanted to log into my
  • 00:40:09
    account to make a trade I needed to put
  • 00:40:10
    in security codes so I gave it to her
  • 00:40:13
    and then I couldn't I literally couldn't
  • 00:40:15
    log into my account and change an order
  • 00:40:18
    I couldn't delete an order I couldn't do
  • 00:40:20
    anything and so I basically made it to
  • 00:40:23
    where I couldn't take action and okay I
  • 00:40:27
    will talk told Mother Story the first
  • 00:40:28
    time I talked her into giving it back to
  • 00:40:29
    me and then I blew it so I told her
  • 00:40:32
    whatever I say I'm going to be very
  • 00:40:34
    convincing I'm going to be very good do
  • 00:40:36
    not give it back to me and she didn't
  • 00:40:39
    and I tried like one or two other times
  • 00:40:41
    and she didn't and then you know what I
  • 00:40:43
    quit I quit trying to get it back from
  • 00:40:45
    her CU I knew I wouldn't and you know
  • 00:40:47
    what happened I started to
  • 00:40:50
    like let go and then just realized oh
  • 00:40:53
    the trade's going to do what it's going
  • 00:40:54
    to do and I was no longer thinking about
  • 00:40:57
    it and I knew that there's nothing I
  • 00:40:59
    could do to take action to change it and
  • 00:41:01
    I was able to follow systems much easier
  • 00:41:04
    so if you don't have a security card on
  • 00:41:07
    your uh account then you could do
  • 00:41:10
    something like change passwords so we
  • 00:41:12
    talked about accountability in the last
  • 00:41:14
    podcast if you have an accountability
  • 00:41:16
    partner this is a great way to use them
  • 00:41:19
    hey I need you to go in change my
  • 00:41:22
    password um and then don't give it back
  • 00:41:24
    to me until uh next Tuesday or give it
  • 00:41:29
    back to me next Thursday or or you
  • 00:41:30
    figure out some time for them to tell
  • 00:41:33
    you what the new password is so these
  • 00:41:35
    are all ways for you to basically make
  • 00:41:38
    it to where you cannot take action and
  • 00:41:41
    the last one I want to talk about is
  • 00:41:44
    automation
  • 00:41:46
    automation if you use
  • 00:41:48
    Automation and again it's automation is
  • 00:41:50
    this catchall term for for program
  • 00:41:54
    trading theoretically speaking a basic
  • 00:41:57
    stop order is automation when I started
  • 00:41:59
    trading we didn't have them you had to
  • 00:42:01
    have a mental stop you actually had to
  • 00:42:03
    be there and click it when it broke
  • 00:42:05
    through the point you wanted it
  • 00:42:07
    to this is automation so use the
  • 00:42:11
    automation as much as you possibly can
  • 00:42:14
    and that way you already know that
  • 00:42:17
    you've already predetermined the action
  • 00:42:19
    when you know you've already
  • 00:42:20
    predetermined the action it does take a
  • 00:42:22
    little bit of the pressure off of you to
  • 00:42:25
    like relieve that because you already
  • 00:42:26
    know
  • 00:42:27
    hey it's taken care of like in the
  • 00:42:29
    flatter Earth trading Society we had a
  • 00:42:30
    2X
  • 00:42:32
    ATR there was no pressure there was no
  • 00:42:36
    worry there was no anything I knew that
  • 00:42:38
    that ATR that 2x trailing stop ATR would
  • 00:42:42
    take care of itself and I didn't have to
  • 00:42:44
    really worry about it so again remove
  • 00:42:47
    your ability to act change passwords
  • 00:42:50
    delete trading apps automation these are
  • 00:42:52
    all ways for you to help yourself in the
  • 00:42:56
    situations we doing nothing is the right
  • 00:42:59
    thing it helps you actually follow your
  • 00:43:02
    plan and people who have been with us
  • 00:43:04
    since the very beginning of this podcast
  • 00:43:07
    uh I'm going to say it one more time a
  • 00:43:09
    lot of these topics and a lot of these
  • 00:43:11
    anecdotes you have probably heard before
  • 00:43:13
    but but this is not without thought when
  • 00:43:15
    we do this you know we we knew from the
  • 00:43:18
    from before that the fomo episode The
  • 00:43:22
    boredom episode The extrovert episode
  • 00:43:24
    got some really good feedback and it
  • 00:43:27
    wouldn't have gotten that feedback had
  • 00:43:30
    it not applied to a lot of you and it
  • 00:43:33
    had not touched you probably in some way
  • 00:43:36
    and so it is worth expanding on these
  • 00:43:40
    topics and we hope you got a lot out of
  • 00:43:42
    this and on that note that will do it
  • 00:43:44
    for this episode of the trading
  • 00:43:46
    psychology podcast Rob and I will both
  • 00:43:48
    see you next time goodbye everybody
标签
  • trading psychology
  • action bias
  • trading strategies
  • emotional control
  • discipline
  • boredom
  • extroversion
  • cultural influence
  • self-awareness
  • automation