Stage 3: The Investor Self

Behavioral finance proves that it is possible to model particular behavioral and psychological attributes in order to actually incorporate these into one’s own style and enhance one’s own investment record. Don’t be intimidated by the fancy label the academics gave this study of the investor self which basically integrates cognitive psychology with investing. Its foundation is rooted on the premise that we make financial decisions based on a combination of facts and what we believe about those facts.

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The Basics

Tensile Trading: Stage #3 The Real Market You're Trading is the Investor Self The average investor would be totally discombobulated if they witnessed the effortless manner in which money...

Don't Even Think About Investing Without Addressing These 10 Essentials - Part 1 This is my collection of useful investing essentials that all of us need to remember and that all novices must adopt...

Don't Even Think About Investing Without Addressing These 10 Essentials - Part 2 I'm not an investment arsonist! I won't try to convince you that stock market perfection is achievable. I will, however, ...

Stock Market Mastery: Part II “Chains of habit are too light to be felt until they are too heavy to be broken.” --Warren Buffet A few weeks...

Stock Market Mastery Part III: The Equation Stock market mastery has many components, but the first step is to acknowledge that it all starts with you – the...

Observations and Lessons

8 Observational Living Tools To Supercharge Your Profits As many of you know, American composer extraordinaire Richard Rodgers collaborated with Oscar Hammerstein to produce...

4 Classic Elements of Mastery Mastery is not achieved by knowing the Holy Grail of trading systems. Mastery is achieved by having the discipline...

This Investor's 5 Personal Passages I’d like to paraphrase a fishing analogy. Show someone how to invest by following a winning trading...

Ten Timeless Tenets of Trading: A 2,500 Year Perspective For those of you who pooh-pooh the lessons of history, listen up! I myself am guilty of being overly focused...

Ten Timeless Tenets of Trading: A 2,500 Year Perspective Part II Art, history and life can parallel investing. This blog is my continuation from last week’s Part I where I...

Overcoming The Slinky Gap: Mastering Both Yourself And Your Trading System I’d like to paraphrase a fishing analogy. Show someone how to invest by following a winning trading...

35 Years and 5 Key Personal Investment Passages I stumbled into a gift shop full of tchotchkes today. It was one of those retailers with endless trinkets and...

Investment Lessons from the Archives “It matters not how strait the gait, How charged with punishments the scroll, I am the master of my fate, I am the...

The #1 Indicator Professionals Focus On A week doesn’t go by without some investor asking me “which one single indicator do you recommend above all others?”...

Blind Spots I attended a lecture last week given by Dr. Anthony Greenwald, a psychology professor at the University of...

Trading the Markets as Black or White Wrong is now right. What I once considered unreasonable is now considered reasonable (and I don’t mean just...

Secret Sauce: The Other 50% of Investing Over decades of training and teaching, it’s been my experience that the majority of both investors and traders are...

Secret Sauce: The Other 50% of Investing - Part II I wrote about this subject nearly two years ago from my own personal perspective, but now I want to expand on the...

Four Perspectives About 'Being in the Zone' I had breakfast the other day with a group of friends, and we spent the morning discussing what it meant to be ‘in...

Where Investment Lessons Reside Michael Jordan is probably the greatest basketball player I have ever seen. He wrote a book titled I..

How a DNA Transfusion Totally Transformed My Investing Over 20 years ago, I had a pivotal year as an investor with a seismic shift in my performance. Some might call...

What an Institutional Director Looks For in a Portfolio Manager How Do You Compare? I was fortunate to spend a couple of days in San Francisco at the annual conference of the International Federation...

Insiders Know It, Professionals Have It, Novice Investors Ignore It When the stock market ground below your feet begins to shift, metaphorically-speaking, and your charts turn into...

An Investor's "Intestinal Computer" Jesse Livermore pointed out that stock market experience is the result of mistakes and that those mistakes have many...

One Way - My Way! There is only one Albert Einstein and only one Warren Buffett. There is only one race – the human race. ...

You Do Want To Be A Type D Investor! I have two things in common with Richard Sherman, the Seattle Seahawks’ Super Bowl star. We both graduated...

Why Investors Need to Appreciate Fine Wines published on October 10, 2014 at 06:45 AM

As I sip my 2008 Cabernet Sauvignon, I ponder all the similarities between myself, as an investor, and Marty Clubb –...

You Only Get 2,000 Profitable Trades Per Lifetime: Use Them Wisely! The National Football League can prove statistically that top running backs, such as Marshawn Lynch of the Seattle...

Academics Prove that Trading the Markets Contributes to Your Longevity Yes, the fountain of youth really does exist, and academic research is increasingly proving it to be found amidst...

Youthful Investors versus Grizzly Veterans: Beer versus Wine At a recent seminar, I was asked by a sharp young investor how much trading rules had changed since I began trading...

The Birth of a New Investor General George Patton once said, “A good plan implemented today is better than a perfect plan implemented tomorrow.”...

Mind Games That Can Kill Investors More often than not, most successful investors will admit that while investing may seem relatively simple, it’s not...

This Investor's Personal Mantra Having traded the markets for over 25 years, I am still focused on ruthlessly driving mind-bending emotions from my...

How I Maintain Emotional Consistency and Behavioral Intelligence Trading the Markets I heard an insightful interview with a judge talking about the transformation she goes through in her chambers as...

Investors: Look Here for the Attributes and Skills You Must Have As an individual investor, what you bring to the table in the way of intellectual, emotional and behavioral skills...

A Tool to Uncover Your Personal Risk / Reward Profile Far too many investors get it wrong, and perhaps no other group more so than the Millennials. In a recent...

An Investor Finds Motivation, Camaraderie, Discipline & Inspiration in a Unique Place Trading camaraderie provides inspiration and motivation, but it does not always emanate from fellow traders...

Why Stress is Like Kryptonite for Investors Years ago when I was a novice investor, I’d exhaust myself trying to figure out why things were happening in the...

The Most Profitable Correlation in the Stock Market Whether it’s life or investing, if you ignore the reality of correlations – be they positive or negative – you are...

This is What Made a Top Hedge Manager So Successful I just read The Buy Side, Turney Duff’s book about his years as the biggest and most successful healthcare hedge...

Plunger Investing: A True Story To paraphrase P.J. O’Rourke, “Giving assets to a stock market plunger is like giving beer and car keys to teenage...

Driverless Trading and the Five Investor Personalities Pursuing a ‘driverless strategy’ – be it automobiles, hedge funds or individual investing – is counterfactual...

The Secret of Success Is... This past February, John Elway, General Manager of the Denver Broncos, achieved the pinnacle of success when his...

As Easy As 1, 2, 3...or 4? What does it take to succeed as an investor? That’s a broad question but nonetheless a supremely important...

Flopping in Sports Can Make One Millions / Flopping in Investing Can Cost You Millions As an investor, there is only one day a year that you are unable to do anything about the stock market’s behavior...

How I Use My Personal Pocket Pads to Produce Profits As many of you know, American composer extraordinaire Richard Rodgers collaborated with Oscar Hammerstein to produce...

Thrive as an Investor, Don't Just Survive Jonathan Wendel earned $454,544. He is very similar to us investors / traders in many ways despite being a...

How Investing, Brain Training and Longevity Fit Together Yes, the fountain of youth really does exist, and academic research is increasingly proving it to be found amidst...

100% of Investors from Lake Wobegon Are Above Average Ninety percent (90%) of Americans believe that they are above average drivers. Multiple studies have...

Stop! Don't Touch It! Let It Go! Quit Tinkering! I’ve seen this play out time and time again at seminars, conferences, lectures, and courses. Remarkably, the...

Interdisciplinary Investing: Combining Fundamentals and Technicals Increases Profits How does a return of 14% in six months sound to you? Last February, I wrote a blog about attending the unique...

Here, Try On These Investor Goggles, They'll Help You See A Path To Profits In a recent moment of self-reflection, I was forced to arrive at the conclusion that I do not view the world the...