Session 7 - Your edgeMake this a True Human Plus Machine partnership

Agenda Be the boss! Why is it so hard for humans to make good trading decisions? How to use your trading journal Assignments for next week

Goal of todays session - Be the boss

Power is nothing if it’s not the power to choose. Instrumental reason can make decisions, but

there is all the difference between deciding and choosing

- Joseph Weizenbaum

Emotions

GreedFear

Trust issues in data

Personal issues (mood)

Laziness

Naive Shortsighted

Risk averse

Why is it so hard for humans to make good trading decisions?

Blame

Discipline (self-control)

EGO

System 1 (fast)

Memory

Emotions

GreedFear

Trust issues in data

Personal issues (mood)

Laziness

Naive Shortsighted

Risk averse

Why is it so hard for humans to make good trading decisions?

Blame

Discipline (self-control)

System 1 (fast)

EGO

Logic

Statistics Data

Expectancy

Strategy Plan

System 2 (slow)

Memory

Facts

System

Formula

Calculations

Framework

Emotions

GreedFear

Trust issues in data

Personal issues (mood)

Laziness

Naive Shortsighted

Risk averse

Why is it so hard for humans to make good trading decisions?

Blame

Discipline (self-control)

System 1 (fast)

EGO

Logic - DARA

Statistics Data

Expectancy

Strategy Plan

System 2 (slow)

Memory

Facts

System

Formula

Calculations

Framework

Always ON

Emotions

GreedFear

Trust issues in data

Personal issues (mood)

Laziness

Naive Shortsighted

Risk averse

Why is it so hard for humans to make good trading decisions?

Blame

Discipline (self-control)

System 1 (fast)

EGO

Statistics Data

Expectancy

Strategy Plan

System 2 (slow)

Memory

Facts

System

Formula

Calculations

Framework

Logic - DARAAlways ON

Trading Journal

• Accountancy system • Analyse what works and what does not work (make sure to have enough data

first - 100 trades for each timeframe)

Suggested Reading material Books about Trading psychology

• Mark Douglas - Trading in the Zone

Books about Trading

• Curtis Faith - Way of the Turtle

• Steve Nison - Japanese Candlestick Charting Techniques

• Andreas Clenow - Following the trend

Books about Algo trading

• Robert Carver - Systematic trading

• Andreas Clenow - Trading Evolved

Books about famous traders

• Gregory Zuckerman- The Man who solved the market

• Jack Schwager - Market Wizards books

• Roger Lowenstein - When genius failed

Books about decision making

• Daniel Kahneman - Thinking fast and slow

• Gary Kasparov - Deep Thinking

Weekly Assignments

Be the boss! Check out you trading journal (but don’t make any decisions

yet) Get 2 books from the reading list Get a public library card

Next weeks webinar

Module 8 - Finishing school 🎓 Putting everything together ready for Live Trading

Thursday 19th December 9:30AM GMT