Trading Psychology : The Difference Between Open-Minded and Close-Minded People

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
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LeTiss
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Thu Sep 21, 2017 10:37 pm

Everybody is close-minded to a certain degree

Brexit is a good example - Remainers will classify the leavers as close-minded, but of course the Remainers are also close-minded for not understanding the reasons for people voting leave in the first place

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ruthlessimon
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Thu Sep 21, 2017 10:50 pm

ShaunWhite wrote:
Thu Sep 21, 2017 8:33 pm
It means you want to be armed with all the options before making a decision
That was the main reason I thought people who are too open-minded would struggle. They'd always second guess themselves after each decision, because they want to understand all the options - which is a trading nightmare!
ShaunWhite wrote:
Thu Sep 21, 2017 8:33 pm
Even if they're both wrong, or both have equally correct but opposing views?
When I was writing that the vision in my head was science vs religion. But I'm closed minded as to which one of those is right. I mean clearly Muhammad went to heaven on a unicorn. If they're both wrong then... FSM!!

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ShaunWhite
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Fri Sep 22, 2017 5:23 am

LeTiss wrote:
Thu Sep 21, 2017 10:37 pm
Everybody is close-minded to a certain degree

Brexit is a good example - Remainers will classify the leavers as close-minded, but of course the Remainers are also close-minded for not understanding the reasons for people voting leave in the first place
I genuinly believe there are open-minded people on both sides LeTiss. But we each reach our different conclusions based on many different factors like life experiences and personal situations. The almost 50/50 answer we got says that either outcome with probably work out reasonably ok, exit predicted to be maybe a 1.8% better outcome. There would have been a much stronger bias if one way was a lot better than the other with millions of brains working on the problem.

I also believe that you're open-minded really, you must be to succeed as you've done. You've got an unconventional job, you were up for trying new things and failing in order to find the knack, you're on here looking for the occasional nugget that'll set off a new idea etc etc.

You just mistake your rapid, confident, no need to reassess, decision making for being closed-minded. I guarentee that you're adjusting how you trade month by month in your subconscious open-mind rather than just doing what you've always done with blinkers on. You wouldn't be a lone wolf, wheelin', dealin' and dodgin' to make a wage if you weren't open-minded LeTiss, don't be shy, admit it ;) Being open-minded and being 100% confident in your current beliefs are not incompatible.

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ShaunWhite
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Fri Sep 22, 2017 5:44 am

ruthlessimon wrote:
Thu Sep 21, 2017 10:50 pm
ShaunWhite wrote:
Thu Sep 21, 2017 8:33 pm
It means you want to be armed with all the options before making a decision
That was the main reason I thought people who are too open-minded would struggle. They'd always second guess themselves after each decision, because they want to understand all the options - which is a trading nightmare!
That's a fair interpretation, and you're dead right, but I didn't quite mean it like that. I meant you will want to consider how new information affects your default position.

I've a feeling this has become an debate on semantics rather than disagreement about mindsets.

I read it as Open = Receptive, Closed = Unreceptive not Open = Weak, Closed = Assured.

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to75ne
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Fri Sep 22, 2017 7:39 am

sounds like an extract from some corporate seminar. i can just imagine all the noddys in the audience nodding and smiling.

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LeTiss
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Fri Sep 22, 2017 8:07 am

to75ne wrote:
Fri Sep 22, 2017 7:39 am
sounds like an extract from some corporate seminar. i can just imagine all the noddys in the audience nodding and smiling.
That's exactly what I thought. When I worked in sales, I had to endure listening to numerous dickheads like this bloke. My company invariably payed a fortune for their services too

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LeTiss
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Fri Sep 22, 2017 8:12 am

ShaunWhite wrote:
Fri Sep 22, 2017 5:23 am

You wouldn't be a lone wolf, wheelin', dealin' and dodgin' to make a wage if you weren't open-minded LeTiss, don't be shy, admit it ;) Being open-minded and being 100% confident in your current beliefs are not incompatible.
We basically agree on this then, because I mentioned earlier that it's all about getting the balance right. Of course I am open-minded at times, I've had to be to embrace my failings in this job, and then address them.

This article was suggesting that being closed-minded is a bad thing, but everybody in a decision making capacity has to be closed-minded in order to get anything done, which is what Simon was quite rightly suggesting

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Euler
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Fri Sep 22, 2017 1:46 pm

My definition has generally been that closed minded people see problems and open-minded opportunities. But you can't blunder into either frame of reference and ignore other factors, but that is open-minded perhaps?

I just think it seems to be a typical human error to dismisses evidence and use your own frame of reference without being able to see why people are saying something else. It takes a lot of effort, time and patience to see others viewpoints and take them into account. But also, changing your mind is often seen as a weakness when in fact it can be a huge positive.

I think most of my experience comes from having had to put up with closed minded people for most of my life. People are happy to tell why something is wrong or not possible and yet they haven't stopped for a moment to think that they could be wrong.

The best case in point is trading. Everybody thought I was mad and it wasn't possible and couldn't be done but I did it. Still, 17 years on people are still debating if I did it, do actually do it etc. etc. etc. In that time I've traded hundreds of millions through the market and made a small fortune, but the truly closed minded just can't accept that and will continue to argue forever that there was something amiss. The open mind will wonder how it was done. I know which I'd prefer to be.

I think the start of my journey was more about bloody mindedness than having a closed mind, but maybe you can argue they are somewhat the same. I knew what I was going to do and how, I just had to get on and do it.

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to75ne
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Fri Sep 22, 2017 2:11 pm

when does open minded become gullibility and when does closed minded become become so narrow that its an handicap ? personally i think you need a balance/combination of both.

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ShaunWhite
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Fri Sep 22, 2017 3:58 pm

to75ne wrote:
Fri Sep 22, 2017 2:11 pm
when does open minded become gullibility and when does closed minded become become so narrow that its an handicap ? personally i think you need a balance/combination of both.
Open-minded AND gullible...sounds like the perfect blind date. ;)

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