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When Too Many Traders are
Thinking
Alike, Very Few are
Really Thinking!
All men can see the tactics
whereby I conquer, but what
none can see is the strategy
out of which great victory
is evolved ...Sun Tzu,
The Art of War
Mercenary traders of the
world---UNITE!!! It’s time
to train your brain for
maximum gains!
It's time to Out Think, Out
Trade, Out Execute, and take
their money before they take
ours! The only way to
matter in the markets is to
matter to yourself. Trading
is a game of war, requiring
both art and science to
succeed. The best traders
have trained their brains to
think differently from
others.
This is the first and only
site on the web dedicated
entirely
to helping you understand
why you make trading
decisions and how to think
about thinking about trading
in order to
become consistently more
profitable.
Through the use of the
principles of Trading
Neuropsychology and
Behavioral Neurofinance, we
strive to profit from market
inefficiencies as expressed
via over-reaction and
under-reaction of other
market participants.
Emotions move the markets
and true winners are those
who understand and apply the
concept that profits are
made by anticipating the
anticipation of other
traders who are reacting in
an emotional and irrational
manner.
The 2003 Nobel Prize winning
work of Daniel Kahnenan and
the late Amos Twersky (click
here) set
the stage for the new
paradigm of Behavioral
Neuroscience. I believe
strongly that the principles
of behavioral
neuropsychology and
behavioral neuroscience are
the most critical elements
in defeating other traders
in the market game. Trading
is a war. It is an art and a
science to be able to go
into the markets every day
and take money from other
people. I am a mercenary
trader and my brain is my
greatest trading tool.
I can regale you with all
kinds of scientific papers
and studies about how the
brain works (Human
Brain Map) to absolutely
mess up your trading. Come
to think of it, I will most
likely do quite a lot of
that, since it is going to
help you to become a better
trader. So, buckle up and
stay tuned because you are
going to get to know
yourself, including how and
why you think the way you do
in a way which you may never
have imagined. You are going
to know how to approach the
three major questions which
every trader absolutely MUST
ASK about the markets in
order to take their money
before they take yours.
As a general rule, it is
foolish to do just what
other people are doing,
because there are almost
sure to be too many people
doing the same thing ...
William Stanley Evans
(1835-1882)
WHO AM I? My name is Janice
Dorn and I am The Trading
Doctor. I just love it when
people who aren't doctors
call themselves doctors,
don't you? Look around and
you will see exactly what I
mean. It's just plain
malpractice and very
detrimental to your bottom
line. This is the real deal
and I am the real Trading
Doctor. In fact I am The
Trading Doctor to the third
degree (since I have three
doctorates!)
Subscribe
now, click here!
I started trading 14 years
ago and struggled with
stocks, options, index
futures, certain commodities
and single stock futures.
For about three years, I
made every possible trading
mistake, including
subscribing to multiple
newsletters and listening
to predictions and gurus. I
already had two doctorate
degrees (a Ph.D. in Brain
Anatomy and an M.D. in
Psychiatry) and managed to
get the most expensive and
challenging third degree (a
Ph.D. in losses) during
those three years. I did
everything---subscribed to
multiple newsletters,
followed multiple so-called
gurus, went to seminars,
learned everything I could
about technical analysis
(until my head was
spinning), tried trading
soy beans (and quit when
they called to say a very
large truck was coming with
delivery), stocks, options,
single stock futures....
Everything. All I did for
three years was lose money.
Beginning in 1996, I focused
all efforts on learning to
trade the gold futures
market. I developed my own
trading strategies according
to my brain and personality
and never looked back. I
became a one-woman no-guru
zone! I am my own guru and
that is what I want for you!
I have traded the gold
futures market without a
losing year since mid-1996,
and now trade my own
accounts for a living. My
style of trading is ambush
scalping and my average
holding time is 5 minutes.
The precarious, volatile and
psychologically- challenging
nature of this market is a
wonderful fit for my style
of trading.
In 2000, I helped set up a
precious metals trading
site. In 2003, I began
mentoring traders/investors
and writing about Trading
Neuropsychology and
Behavioral Neurofinance for
a large technical analysis
site. In 2006, I started my
own site (www.thetradingdoctor.com)
which is the first and only
subscription site devoted
specifically to Trading
Neuropsychology and
Behavioral Neurofinance. To
date, I have published over
300 articles relating to
these subjects and have
coached or mentored over 600
traders in real time.
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The importance of market psychology
Fortunes have been made by marketing
geniuses in the last few years,
telling people the problem with
their trading is not their system or
indicators... but their
psychological mindset and quirks.
For the most part these people are
what I call Psycho-Babblers, people
with a limited degree of education
in psychology and practically no
experience in the markets. I would
name names, but the list would be
too long!
I will never forget being at a
traders Expo in Las Vegas, where
some would be psychological trader
guy was billing himself as a samurai
warrior, dressed in costume, playing
the role of trader, warrior and
guru.
Little did he realize that the
fellow in the booth next to him was
a world champion ultimate fighter…
the two of us laughed at the antics
of Mr. Samurai, who, to paraphrase a
great line was all Kimono and no
punch.
One of the real deals of the
psychological aspects of the market
is Dr. Janice Dorn. Consider this
little excerpt from a recent
writings
“Among the most difficult
things a trader can do is to change
his or her mindset. If you are
frozen in fear, then you will do
nothing. That is your choice and it
may be what works for you. There are
traders who justify everything by
saying that they were glad they did
nothing. So be it. But, if you are
in the markets to do nothing, why
are you in the markets at all?”
Janice carries not only an MD but
also a Ph.D. in psychiatry… better
yet, though. She brings to the table
years of experience as a trader, so
she knows the pain pressures and
agonies that people like you and I
go through. Yet she can understand
these in terms of the physiological
and chemical changes that go on
within us. You may wish to visit her
website http://www.thetradingdoctor.com.
You will be in good hands with her
unlike many of the psychobabble
artists out there.
Larry Williams
(Founder of
the technical indicator Williams%R)
read more rants & raves
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WHAT IS THIS SITE
ALL ABOUT? |
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-
Behavioral
Neurofinance
-
Trader Wellness
and Longevity
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WHAT IS BEHAVIORAL
NEUROFINANCE AND HOW CAN IT
TURN YOU INTO A MASTER
TRADER OR INVESTOR?
Behavioral Neurofinance is
the hottest, least
understood and most exciting
area of trading. It is the
WHY AND HOW of making
trading decisions. It uses
the very best research on
economics, psychology and
brain science and applies
them to decision making in
the financial markets.
Behavioral Neuroscience
tells you why you are always
greedy when you should be
fearful and vice versa.
Modern brain research is now
able to look inside the
brains of people in the
process of making decisions.
How cool is that? The
more you know about how your
brain works, the better you
are able to understand (1)
Why you think the way we do?
(2) How to channel that
thinking
into your best possible
trading decisions and (3)
How to exploit and profit
from the new science of
irrationality.
Behavioral Neurofinance
exploits common thinking
(cognitive) errors made by
millions of other traders
and uses these to your
advantage in your own
trading. Some examples of
cognitive biases are as
follows:
Examples of Cognitive
Biases and Their Impact on
Trading Decisions
|
Bias |
Decisions |
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Anchoring and
Adjustment Trading |
Traders make
assessments by
anchoring on
available
information and
making sufficient
adjustment. |
|
Recall-ability or
retrieve ability |
Assessment of
frequency/probability
of events is
influenced by the
ease/difficulty with
which information
can be retrieved
from memory. |
|
Outcomes versus
decisions |
Good decisions that
lead to bad outcomes
are often
inappropriately
characterized as bad
decisions. |
|
Base rate |
Traders tend to
ignore base rates in
assessments when
other description
information (even if
it is irrelevant) is
available to them. |
|
“Rare” events |
Traders tend to
underestimate the
probability of
occurrence of events
that are/or appear
to be random. |
|
Dramatic events |
Traders tend to
overestimate the
probability of
occurrence of events
that are/or appear
to be dramatic. |
|
Representativeness |
Traders sometimes
draw inappropriate
conclusions from
observations that
are easily
associated with
common conditions
that are not
necessarily present. |
|
Randomness |
Traders tend to
underestimate the
probability of a
sequence of outcomes
that might falsely
appear to have a
non-random trend. |
|
Sample size |
Traders tend to fail
to properly
incorporate the
impact of sample
size on the
reliability of
information. |
|
Unstated assumptions |
Traders often
improperly presume
common and typical
assumptions that are
not stated to be
true and valid. |
|
Mindsight |
Traders tend to
overestimate the
degree with which
they would have
predicted a correct
outcome after it
becomes known to
them. |
|
‘Curse’ of knowledge |
Traders fail to
ignore information
that is known to
them when assessing
the behavior of
others who do not
possess the same
information. |
|
Conjunction fallacy
|
Traders falsely
assess a conjunction
(two co-occurring
events) to be more
probable than either
of the two events. |
|
Vividness |
Events that are more
vivid in a Trader’s
memory are assigned
higher
frequency/probability
than those that are
less vivid. |
|
Confirmation |
Traders tend to have
a tendency to seek
information that
confirms what they
think and
neglect/overlook
information that
contradicts their
beliefs. |
|
Overconfidence |
Traders tend to be
overconfident of
their judgment and
assessment,
particularly when
dealing with
moderately to highly
uncertain
information. |
|
Escalation |
Traders tend to
exhibit a
non-rational
escalation of
commitment that is
often caused by
perceptual or
judgmental biases,
impression
management, or
competition. |
|
Gain/loss |
Traders tend to be
risk averse to
positively framed
choices (e.g. gains)
and risk seeking to
negatively framed
choices (e.g.
losses). |
|
Certainty illusion |
Traders assign a
higher value to a
reduction in
uncertainty when the
initial condition is
more certain than
otherwise. |
|
Insurance cost
versus loss |
Traders tend to
favor insurance
premium over losses
even when both have
the same monetary
cost. |
|
Transactional |
Traders assess
values based on both
acquisition utility
(commodity value)
and transactional
utility
(deal/process
value). |
|
Ownership |
Traders place a
higher value on a
commodity when they
own it than the
value they are
willing to pay to
acquire it. |
The way to make money by using your brain is to outthink,
outwit and out-anticipate the millions of other people who
are trading against you. It is only through Training Your
Trading Brain that you will be able to take profits
consistently, to cut losses and to see what others are not
seeing.
Neuroscience is in a revolutionary stage right now with
technology which allows us to actually see the brain in
action during decision making and other tasks!
Yes -- this is mercenary, exploitive and cutting edge. It is
the Brave New World of Trading and I invite you to join me
as we explore this great new frontier of money making!!
There are three basic types
of trader personality, each
suited for a different style
of trading. If you want to
know which type you are in
order to know if you are
trading in the right time
frame, then
subscribe now!
Subscribe now and start training your trading brain!
There are certain
fundamental beliefs about
the financial markets that
are crucial to success. At
this moment, I am prepared
to share with you at least
10 beliefs I hold currently
and which have taken me to
financial success year after
year without one losing year
since 1997. I know what you
are going through because I
have made every possible
trading and investing
mistake! One of the tenets
of Behavioral Neurofinance
is this:
The markets are not
rational. The markets are
not random. The spoils of
trading go to those who,
using their unique brain
structure, can find and
exploit market
inefficiencies. We are
interested in winning by
anticipating what others are
anticipating. This is what
Behavioral Neurofinance does
and it is getting more and
more powerful every day.
Soon we will be able to
actually look inside the
brain of a trader and tell
you what that person is
thinking. How powerful and
perilous is that anyway?
Whatever you might think of
it, it is coming and coming
soon. Those of you who are
here first will already know
it and be prepared for
anything, including a look
inside the brain of a trader
(including your own brain)!
What you get with your
subscription:
-
The Trading Doctor
Monthly Newsletter
(every month you will
get an update of the
most cutting edge
developments in trading
and investing
Neuropsychology and
Neurofinance) written by
Dr. Dorn.
Click here to see a
sample Newsletter
-
The Trading Doctor
Updates (approximately
every 10 days or so, you
will receive an e-mail
update of the latest
news in brain and
trading/investing
behavior) (Click here to
see a sample Update
link)
-
The Trading Doctor
Alerts (just in time
breaking news and
commentary from Dr. Dorn
or guest contributors)
Click here to subscribe today!
But wait, there's more!!!
You also get:
-
Immediate access to all
of Dr. Dorn's archived
writings on Behavioral
Neurofinance, Trading
Neuropsychology and
Radical Wellness and
Longevity
-
Immediate access to
writings from great
minds, past and present,
on the market, money and
why you win or lose in
the markets
-
Market barometer (buy,
sell or cash signals)
for the broad market (Short Term Traders
Only) --Coming Soon!
Subscribe
now, click here!
And if that’s not
enough… there’s MORE for you
when you join Dr. Dorn!!!!
-
Daily Blog by Dr. Dorn
on what she sees in the
markets, what she is
reading, and breaking
development which can
impact your profits.
--Coming Soon!
-
Letters from
Traders. Real traders,
real stories, from the
highest highs to the
lowest lows. --Coming
Soon!
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