Dealing with the enemy trading

I recently read Nate Silver's book The Signal and the Noise.  I highly recommend this book for traders on a variety of levels.  One of the chapters is about poker and associated statistics.  I have long been a fan of poker as there are many similarities between poker and trading whether you consider that from the viewpoint of risk management and equity variance,  psychology or etc.

As discretionary traders one of the biggest things we have to deal with is ourselves. For example, we need to be patient and wait for the right opportunities. And, we need to have the discipline to not trade for the sake of trading.

One of the sub-chapters of The Signal and the Noise references another poker book by Tommy Angelo that discusses all the different kinds of tilt a player can experience.  Tilt, as it is called, is when a player gets off his game for some sort of emotional reason. I found this list to be remarkable so I will share it with you here:

1) Steaming tilt,  2) simmering tilt, 3) too loose tilt, 4) too tight tilt, 5) too aggressive tilt, 6) too passive tilt, 7) playing too high tilt, 8) playing too long tilt, 9) playing too tired tilt, 10) entitlement tilt, 11) annoyed tilt, 12) injustice tilt, 13) distracted tilt, 14) scared tilt, 15) envy tilt, 16) I-gotta-get-even tilt,  17) demolition tilt (and others).

For anyone who has been trading for any length of time, you know many of these. If you add all that up, it certainly gives you an idea of how much can be stacked against you as a trader.  After all, there is really only one correct state for trading.  That is a generally happy, at ease and aware state with a lack of fear or other negative emotions.

This is why it is so essential to have a solid method for trading so you have a context in which to understand your emotions and moment to moment experience.  If your method is not as solid as it should be and you are not already a room member, it might be of good value to try the room. We focus on rational statistically based decision making for trading that can help cut through the negative factors of trading and shift it towards the positive and rational.

We look forward to seeing you in the room!

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