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My guest today is Charles Faulkner, an author, trader, and an expert on modeling the knowledge and performance of exceptional individuals. He was originally featured in \u201cThe New Market Wizards\u201d by Jack Schwager.

The topic is trading psychology.

In this episode of Trend Following Radio we discuss:

• The notion of fictional people and why famous figures in finance are \u201cfictional\u201d
• The importance of narratives, stories, and metaphors
• The halo effect and deluding ourselves
• The difference between a story and a strategy
• The nature of independent thinking; herd behavior
• Ego, ignorance, and authority
• The five different types of minds: the experiencing mind, the imaginative mind, the reasoning mind, the reflective mind, and the generative mind
• System one and system two
• Why words don\u2019t change people but experience does
• Experience base and the difference between amateur and professional traders
• The two kinds of market wizards
• Language in the context of the five different types of minds
• The importance of asking \u201chow\u201d does the market work over \u201cwhy\u201d
• The importance of luck and time in the case of Warren Buffett
• Why you shouldn\u2019t get your excitement from trading

Jump in!

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I\u2019m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I\u2019m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I\u2019d like to give you a great piece of advice you can use in your life and trading journey\u2026 cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/

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