Steve Ward’s High Performance Trading: Skills-building tips
Yesterday something completely different happened at the regular STA monthly meeting: a talk without charts! Well, just one but none of us managed to guess what it was: blood sugar levels of an Israeli parole board, so not an entirely surprising result.
Steve is a well-known and well respected motivational coach with an emphasis on trading psychology. Starting off with team building exercises for the military, sports groups, and poker players, in March 2005 he found himself in a trading room as key US non-farm payroll data was released. He recognised the gladiator style ‘hedge fund chic’ in an arena atmosphere – and has been focusing on financial markets ever since (2006).
The four areas in which performance can be improved are the ‘four S’s’ – Skills (knowledge), Strategy (game plan), State (keeping up with market psychology), and Situation (not physical location but geopolitical issues and key market variables). With all of these the aim is to keep as close to ‘best practice’ as possible to avoid drifting and losing focus. To do this one has to learn to deal with stress and build resiliency. Breathing techniques, very much based on yoga meditation practice, form the basis of this training.
He also explained how the heart is the key body motor and how it pumps blood to where it’s needed most. This explains why we often can’t think clearly when we are stressed because the blood has been drained from the cortex of the brain to its stem in order to deal with a ‘fight or flight’ situation. However, he notes that when developing trading algorithms (usually to cut out emotions) one loses something; this is because emotions actually speed up limbic thinking and encourage an awareness of danger. Therefore one should notice, label, and tame these feelings.
Mindfulness – such a buzzword these days – is a way to train our attention so that we are aware of and notice what is going on around us. Developed by the US military to help making decisions under stress and conditions of uncertainty, it helps one see the bigger picture. To improve here one needs Focused Attention Training (acronym FAT) which leads to the 7 P’s: Proper Planning and Preparation Prevents Piss Poor Performance. Nice!
Tags: Psychology, tactics, trading
The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA. The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. None of the information on the STA’s blog constitutes investment advice.
- STA Freedom Party: Something to celebrate September 28, 2021
- New Lessons from Brain Science: and how they inform risk taking September 23, 2021
- Market reaction to EU July Industrial Production September 17, 2021
- The Gamification of Trades: US Securities & Exchange Commission warning September 9, 2021
- Tips from an expert on Public Speaking: And how to master a Zoom presentation August 25, 2021
- A fireside chat with author Jack D Schwager: He of Market Wizards fame on
- Market Wizards – and their lesser known cohorts: Jack Schwager hits the book launch circuit on
- Colours, clashes and clichés: How and why use colourful charts on
- Do you know Aroon? I do, but not very well on
- Must read classics: Richard W Schabacker – the real bible of technical analysis on