Fast growth mindset missteps with Bill Moore
Understand what cognitive biases are, and how you can manage them when trading. Get professional insights from quant, trader and entrepreneur Bill Moore.
Reading time: 32 minutes
Trading level: Intermediate
Introduction by Louise Bedford
It’s so easy to second guess yourself, even when you’ve been trading successfully. So many traders fall victim to some of the cognitive biases that can mess up their stellar trading results.
A cognitive bias is a mental shortcut that isn’t based on a rational thought process. Sometimes we have a subconscious need to shoot ourselves in the foot. Ever noticed that?
Well, it’s time to give you specific strategies to tame your emotions and keep them from impacting your performance when you’re performing well.
That’s why I’ve invited Bill Moore to discuss this fascinating area with me.
Bill Moore is a quant, a trader, a developer and an entrepreneur. He’s the founder of fasttrading.academy and he’s data-driven, and edge-focused. He’s also a keen player of games of strategy, such as poker, chess and backgammon. He approaches trading with the same strategic mind.
We’re going to talk about the cognitive biases you can experience when you’re flying high and growing at a remarkable rate as a trader. You’ll learn how to keep your grip on reality, and some of the warning signs to look out for. Plus we’ll even give you a ‘try this at home’ tip, so you can implement what you’re about to learn.
Welcome Bill…
Questionnaire
How can confident traders stop themselves from becoming arrogant after they’ve made some big wins in the markets?
The markets provide very inconsistent feedback. What does that do to a trader and their behaviour?
What are the top cognitive biases traders who are successful in the markets experience?
It’s so easy to get caught up in your own ego when you’ve made some short term wins. How do you divorce yourself from the noise of short term performance metrics and look at the big picture?
How do you cope with the droughts, when the harvest can be a long time in coming?
Beginner traders who have early success in their first few trades may think that trading is ‘easy’. What would be your advice to them?
Why do you think that so many beginner traders think that they’re experts? I wonder whether it’s because they’ve watched the movie – ‘Wall Street’, or seen the TV series ‘Billions’. Just because you’ve sat in a plane, doesn’t mean you know how to pilot it. I’d like to hear your thoughts about this.
Is there any research on this topic in relation to traders?
Do you have a ‘try this at home’ tip?
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