Human brain has limitations in information processing.
We cannot consciously attend to all our sensory inputs at the same time. Brain
has its own ways to overcome this information overload. It filters out the less
relevant information and process only the remaining important information for
decision making.
How does the brain classify information relevant or less relevant?
How do we train our brain to respond to the relevant ones and ignore the trivial?
It is by selective attention.Selective attention is simply the act of focusing on
a particular object or information for a period of time, while simultaneously
ignoring irrelevant information that is also occurring
Discretionary trading is all about decision making. Our
success as a trader will depend on the quality of the decisions we make.
Ultimately this will depend on the quantity and quality of the information on
which we act. Less information to process means less cognitive load and better
decisions. Quality inputs create quality output.
Do a selective attention audit on yourself frequently.
Critically evaluate your information inputs. Do they really matter? Are they
making any difference in your trading performance? Can it be discarded?
Surprisingly you will find many of the variables you use now are not
contributing anything but simply creating cognitive load.Discared them
Less is more in trading. Lifting their arsenal itself is a problem for many. How can they fight?
Thank you ST. Nice article as always.
ReplyDeleteThanks ST, on similar lines
ReplyDeleteUsed get distracted, drowsy after lunch in afternoon. So I have have after trading session 3:30 and T break in afternoon.
How do you manage your post lunch drowsiness ?
Yes afternoon sessions are difficult to concentrate
DeleteFrequently I get up wash my face and do some stretching
Normally every half an hour I get up and walk inside the room for a few minutes
ST
Hi ST,
ReplyDeleteI have seen a pattern on DPs for BO entry.. Named it Taps on DP. You can see at below link. waiting for your inputs..
http://tradewithdeven.blogspot.in/2014/07/taps-on-dp.html
Thanks,
Deven Malhotra
Thanks for sharing the observation.
DeleteVery valid one. Posted a link to the original article.
ST
Thank ST sir,
ReplyDeleteAs I eagerly wait for this kind of post every weekend.
Thanks.
Arvind