How to make better choices

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
Post Reply
User avatar
Euler
Posts: 24806
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

http://250words.com/2014/08/how-to-make ... -and-work/

We can’t deactivate our biases, but we can “counteract them with the right discipline.” The Heath’s developed the WRAP model. Each step is sequential, but not rigidly so. “At its core, the WRAP model urges you to switch from ‘auto spotlight’ to manual spotlight. Rather than make choices based on what naturally comes to your attention–visceral emotions, self-serving information, overconfident predictions, and so on–you deliberately illuminate more strategic spots. You sweep your light over a broader landscape and point it into hidden corners.”
Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

'When we’ve got a difficult decision to make, our feelings churn. We replay the same arguments in our head. We agonize about our circumstances. We change our minds from day to day. If our decision was represented on a spreadsheet, none of the numbers would be changing–there’s no new information being added–but it doesn’t feel that way in our heads. We have kicked up so much dust that we can’t see the way forward. In those moments, what we need is perspective.'

Yep, I can relate to that! :lol:

Jeff
Post Reply

Return to “Trading Psychology”