Trade Mindfully To Create A Larger Nest Egg
b'With Dr. Gary Dayton, Trading Psychologist\\xa0and Author of\\xa0Trade Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting Edge Psychology
In his new book, Trade Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting Edge Psychology, Dr. Dayton presents the two true components to what can make you become a successful trader. Dr. Dayton is an expert on trading psychology and advocates applying the concepts and practice of \\u201cmindfulness\\u201d to improving trading strategies. Mindfulness, according to Dr. Dayton, goes back more than 2,500 years to the mental techniques used by yogis and Buddhist practitioners to calm and focus their minds on the moment, and he shows us how these strategies can be used by investors to reduce stress and the fear of loss and to control unwanted trading emotions and \\u2018recency\\u2019 effects\\u2014to improve objectivity in interpreting trading data and gaining an edge on portfolio performance.
Loss Aversion, Recency Effects, and Other Biases and Distractions
He discusses loss aversion and why losses hurt more than the euphoria of equivalent gains and how this impacts portfolio performance. His techniques are about training the mind for greater attention, better focus, and casting aside distractions and their influence on our trading behavior. The idea is to get over your visceral emotions and to let rational decision-making prevail. He shows us how to ignore data that really is not relevant to our portfolio\\u2019s performance, and gets us to dig deeper into questions that are more relevant to our trading goals.
He addresses the \\u2018recency\\u2019 effect, where recent experiences are more heavily weighted in our minds and lead to irrational decisions. For example, three losses in a row lead to greater loss aversion or three profitable trades could lead to irrational exuberance and losing trades. He presents solid research on loss aversion (how losses hurt a lot more than equivalent gains) and how mindful trading puts loss aversion in perspective.
So, listen in to get an edge on your trading strategies. While short-term trading may work for some, these mindfulness techniques can be equally useful for fundamentals-based investing and holding shares for the long term, which is undoubtedly a safer wealth preservation and growth strategy.'