#2 Mental 'Edge' in Trading, with Mark Randall and Steven Goldstein
Jun 13, 2019
51:04
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Experts Mark Randall and Steven Goldstein discuss 'Mental Edge' in trading, covering risk intelligence, positive expectancy, poker, 'edge' in decision-making, self-refreshing, 'Trading Turtles', physical performance, caffeine effects, alcohol impact, military mindfulness, battling self and ego. Insights to elevate trading psychology and enhance performance.
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Quick takeaways
Developing a mindset for trading involves creating a positive expectancy and leveraging natural advantages for decision-making processes.
Success in trading requires honing skills through disciplines like poker, emphasizing risk assessment, decision-making, and self-control.
Deep dives
Exploring the Concept of Edge in Trading and Investment
Edge in trading is characterized by developing a mindset that enhances performance, situational awareness, and self-management. It involves having a natural advantage that creates a positive expectancy in decision-making processes. A notable example from the podcast is the approach used by a skilled gambler who tests opponents in backgammon before committing to a game. This strategy demonstrates how identifying and leveraging one's edge is crucial for success in trading and investment.
The Link Between Poker, Trading, and Mindset
The podcast highlights the story of a trader who excelled in both trading and poker, showcasing the similarities in risk assessment, decision-making, and self-control required in both fields. By engaging in poker, the trader honed skills that directly translated to his success in trading by emphasizing discipline, recognition of opportunities, and the ability to step back strategically when needed.
Importance of Mental Fitness and Presence in Trading
The discussion emphasizes the significance of maintaining mental sharpness, emotional control, and presence in trading activities. It stresses the need for traders to reset and refresh their mental state throughout the trading day to optimize decision-making and performance. By focusing on breath awareness, sensory perception, and mental clarity, traders can enhance their cognitive abilities and make informed, effective decisions.
Leadership, Self-Compassion, and Physical Well-being
Effective leadership in trading environments involves cultivating a culture of self-compassion, stress management, and physical well-being to optimize performance. The podcast recounts stories of leaders who supported traders by reducing stress, fostering self-belief, and emphasizing the importance of mental and physical health. By prioritizing self-care, traders can enhance their decision-making, creativity, and overall performance in high-pressure trading environments.
In this episode we jointly explore the subject of 'Mental Edge'.
This conversation covers a broad swathe of themes around the subject of 'Mental Edge' in trading, including:
Risk Intelligence and how thinking about 'edge' in terms of positive expectancy.
Poker, trading and having an 'edge'.
Walking away and getting 'closure', as an 'edge'.
Resetting and refreshing 'Self'. as an 'edge'.
The 'Trading Turtles', and 'Psychological Edge'.
Physical aspects of Performance: Sleep, Alcohol, Caffeine.
How caffeine increases anxiety, and alcohol dulls performance, to create a negative edge.
Time of day trading, decision-making and performance.
Military and Mindfulness 'mindfitness' to enhance decision-making, focus and attention.
'Mindfitness' as a tool for developing laser-like focus and greater presence.
Trading and the personal battle with 'self and ego'.
If you want to elevate your trading psychology, there is so much great wisdom shared in this conversation. We think you will really enjoy it.
AlphaMind: Powering Performance in Global Markets AlphaMind brings powerful change, growth and development to people and businesses within global markets. Driven by a deep understanding of how markets work, and how people and businesses function within them, we partner with clients to create personal performance improvements that elevate returns across their trading activities. Go to the AlphaMind website to know more.
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