- Aug 12, 2008
"...research indicates is the power behind this mysterious “X-factor.”". Right up my alley!
I can think of heaps of ways to use this in training and live trading.
Traders and Portfolio Managers recognize that some among their crowd have a seemingly outsized talent for predicting the direction of the markets. On one hand, it’s common to cobble together good performance with good risk management, but the consistently great performers appear to possess some sort of otherworldly gift for seeing where prices will go.
The Bloomberg Tradebook Trader Exercise has been designed by The ReThink Group to assist traders in practicing the thinking style that research indicates is the power behind this mysterious “X-factor.” Ironically, brain and behavioral research shows that the markets only masquerade as a numbers game. They are actually a game that neuroeconomists have called “intentional social risk”.
As such, this trader brain warm-up leverages classic psychology research into the perception of social meaning. If indeed the brain works a bit like muscle, engaging with the exercise can be expected to help bring a trader into the right mindset to make his or her best trades. For more detailed information on the science behind The Bloomberg Tradebook Trader Exercise, click here.
I likened it to dogs interacting. A bull terrier goes outside the yard and a bitsa (and its bitch) turn up. The bitsa gives the bull terrier a bit of cheek and gets chased. The bitsa thinks it's a game and has another chop. The bully doesn't want to play and goes back in the yard with the bitsa's bitch. :1luvu: The bitsa goes up to the gate to goad the bully some more and try to woo his bitch back.
Don't know what the connection to trading is though.