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Trading Food for Thought: April 10th Edition

Trading Food for Thought: March 6th Edition

Ep. 542: Trading Psych Mega Episode with Michael Covel on Trend Following Radio

Know Thy Self
Know Thy Self

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Michael has had some of the brightest psych minds on his podcast. Today he pulls together the great psych minds in trading into one podcast. Those interviews include: Brett Steenbarger, Jason Williams, Van Tharp, Daniel Crosby, and Meir Statman.

Brett Steenbarger is a Clinical Associate Professor of Psychiatry at New York State University, and author of The Daily Trading Coach, The Psychology of Trading, and Enhancing Trader Performance. His newest work is Trading Psychology 2.0: From Best Practices to Best Processes.

Jason Williams is author of The Mental Edge in Trading. Jason received his psychiatry degree at John Hopkins. His father is famed trader Larry Williams.

Van Tharp runs the Van Tharp Institute and is author of four acclaimed books published by McGraw Hill: Super Trader, Trade Your Way to Financial Freedom, Safe Strategies for Financial Freedom, and Financial Freedom Through Electronic Day Trading. His new book is called Trading Beyond the Matrix. He was also featured in Jack Schwager’s Market Wizard’s: Interviews with Great Traders. Van Tharp received his Ph.D. in psychology.

Daniel Crosby is author of The Laws of Wealth: Psychology and the Secret to Investing Success, and co-author of the New York Times bestseller Personal Benchmark: Integrating Behavioral Finance and Investment Management. His background is in behavioral psychology and he sees the markets as a great backdrop to view human behavior in a real world setting. He is also founder of Nocturne Capital.

Meir Statman is a professor of finance at Santa Clara University and a behavioral finance expert. His acclaimed book is titled What Investors Really Want.

In this episode of Trend Following Radio:

  • Envy and happiness
  • Fear of losing vs Fear of missing out
  • Mental accounting
  • Expert discretion
  • Efficient market theory
  • Human ego
  • Warren Buffett and his trading strategy
  • Passive investing
  • Sigmund Freud’s impact on trading
  • Standard deviation as a proxy for risk
  • Matching “the benchmark”
  • Systems theory
  • Money management vs. Position sizing
  • Ed Seykota’s trading and psychology strategies
  • Tom Basso’s trading and psychology strategies
  • Yoga
  • Training your brain how to think

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Ep. 541: Vanessa Van Edwards Interview with Michael Covel

Vanessa Van Edwards
Vanessa Van Edwards

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My guest today is Vanessa Van Edwards, author of Captivate. Vanessa jokes that she is a recovering awkward person and learned in college that she could apply systems thinking to people skills. Once she started making formulas around communicating with others, she found there was more people like her.

“Treat others how you would want to be treated” is the golden rule. However, that rule should be changed to, “Treat others how they would want to be treated.” We think we know how others feel but we actually have very different ways of viewing the world and how we respond. Most are far better at intuition and snap judgment if they let their bodies do the work. Vanessa gives examples of our bodies sensing intuitively that something is wrong, exciting, etc. Our heart starts to pound, our palms start to sweat, and you may start blushing when your nervous. Your body also sweats differently when you are nervous or fearful rather than sweating from a workout.

What does it mean to “Work a room?” Being a social butterfly at events meant nothing to her because she was not the most outgoing person to begin with. She ended up engaging in countless meaningless conversations that went nowhere. This prompted her to do a study on what it actually meant to work a room and what the best people do to connect and network. She found most make their first impression before they even open their mouth and that we can spark dopamine with good conversation. How do you leave typical social conversation scripts (i.e. “What do you do?” “How are you doing?” “Where are you from?”) and have meaningful talks? This is how she came up with the idea of “conversational sparks.”

In this episode of Trend Following Radio:

  • Bringing the unconscious to the conscious
  • Confidence and lack of confidence
  • Introverts, extroverts and ambiverts
  • First impressions
  • Conversational spark
  • What makes a great presentation

“Expecting greatness creates greatness.” – Vanessa Van Edwards

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