There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Saturday, May 5, 2012


Many studies have been conducted on expertise development and experts in various fields and today psychologists have a very good understanding about what makes an expert an expert.

The difference between an expert and a novice is that a novice has not acquired the “Schemas” of an expert. Novices are highly conscious of the process and the rules involved in performing the task Experts rely much more on their accumulated experience or Schemas. Once you build a Schema, any error-prone, slow and difficult task can be made smooth and effortless

The short term memory of the human brain is limited. The complex skills we learn are stored in the long term memory as “Schemas”. Schemas permit us to treat complex processes as a single element. They are the cognitive structures that make up the knowledge base.

As novice traders we are trying to remember steps or sequence or method rules. This creates additional load on our cognitive processing. That is why we become frustrated and lose confidence. With experience, once you build a schema, performance of the task becomes automatic. This cognitive phenomenon is called "automaticity”

There are no shortcuts in trading other than achieving “Automaticity”.


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