Translated from Russian by Google Translate
2 Сентябрь 2009

Model behavior trader on Brett N. Stinbergeru

I believe that in order to improve their professional level, should be read not so much professional literature as a classic. Alas, but for the development of our society, I am forced to conclude that all relations have long been firmly shifted to the economic rails. That is why most literature about the FX market, which today is more than ample, in my opinion, can not be compared with the classical, as they thought, the views that describe the classical authors - unselfish. Frankly speaking: everything useful that I learned for myself as a forex trader, was taken from the classical works.


This is just a little preface. Today, in fact, I would like to talk about the opinion of a very famous man - Brett N. Stinbergera. Stinberger - Doctor of Philosophy and professor of honey. University in Syracuse (New York). But for me, as a trader, this person is interesting in that he, as a practitioner and quite a successful trader, while at the same time, is the author of several scientific papers on market psychology. One of his outstanding work - book «Psychology of trade» 2003

Brett Steenburgen is not a private practice, but I think that after reading the aforementioned book, not a forex trader turned to him for help. Below I provide the most interesting excerpts, view this person as a whole trade, and in terms of psychological stability in particular.

1. Forex, who can not control their emotions when trading $ 100, can not control themselves and with the trade of $ 200. This, of course, is elementary. But there is one small feature. Calibration of our emotions come from how much we earn or lose. It is therefore not surprising that when it comes to more substantial amount, the forex trader is experiencing great difficulties. But the thing is that when trading different amounts, whether $ 100 or $ 200, the market situation may be completely identical, but the behavior of traders in these situations may be different.

2. One of the problems, which is quite common, is the problem of anxiety about the execution of transactions. This concern appears at a time when we begin to carefully analyze the situation, which had previously been the subject of automatic execution. With such attention, there is excessive interference, which can not occur normal execution. Such anxiety performance often occurs at the time of execution of any tricks in front of large audience at sporting events, etc. Therefore it is worth understanding one detail: when fear dominates the execution by the execution, it will suffer itself out.

3. Professor gives an example of a presentation of a young woman. Once in her career came a great opportunity to climb the ladder. The question was what she had to make a presentation. They have never experienced problems with public speeches, so I try to hold responsible. But the price performance had the opportunity to get very wealthy clients for their company, or, in the case of a puncture, losing it in favor of a competitor. During his speech, she sees (or it is just a guess) that people from the competitor is not very attentively listen to her. All this prompts her to raise concern, and she is now trying to give his speech sharpness. This in turn inhibits its ability to keep track of the conversation. She becomes agitated that they can not fail to notice those present. As a result, the speech ended on a very uncertain note.

4. One of the samples that may undergo forex trader - is too much emotion in the performance in the pursuit of the achievement of pre-selected target. For example, if a trader Forex aims to make 10 000 $ for six months, then all the current problems which will impede the execution of this plan will prevent calmly and confidently go to the goal. Therefore be more appropriate in this case raises several other goals. For example, the goal to adhere to pre-chosen strategy. It should set itself, that, say, 90% of cases need to stick to its plan on the size of positions, entrances and exits from the market.

5. Common situation: Trader offers several positions in a row. And they all - successful. Then he saw such luck begins to increase the size of positions. But as a result of such machinations large orders are pushing the market in another direction. Market turns around and forex trader gets a big money-losing deal. One of the deal covers all the previously derived income. Now again, forex trader opens a position in the direction of the new wave in order to cover their losses. As a result of such transactions, the trader begins to feel like a jerk and the latter plays only a small lots. In addition, increased anxiety, which prevents correct assessment of the FX market.

How out of this vicious circle of the eternal problems that ineradicable? Here are some tips from Stinbergera.

1. Rehearse your emotional state. Every time the market is a difficult situation arises, try to enter into a particular psychological state. Status of calm and equilibrium. After that, you have formed a certain pattern, and when the situation will compel you nervous, just ready to lay down the template and enter the developed your emotional state.

2. Try to focus not on purpose, but on the process itself. If you put money in front of goal - something that not noticing, creating a needless pressure. Classical psychological installation sounds so: «If I do everything correctly, then the profit is sure to come with me»

3. Exclude domestic demand to own: «I must now make money N». Such claims unsettle and hinder the normal execution.

4. One of the tips, which I liked most. Brett said: «Trade Division of Life». The most vulnerable category of traders - traders who trade for their existence. In that case, if the trade for you - a whole world and it currently fails, it is not surprising that you will be very vulnerable at those moments, because you feel that you have created the world is crumbling before your eyes. Therefore, the Council, which in this case gives Stinberger sounds so: «In this case you need to expand the self-eggs in different baskets. This will give you a guarantee that any decline in any case will not erode your confidence in yourself ».