Have you ever wondered why someone you know is unable to see the obvious? Sometimes people are blind to what is front and center. But why is this?

“Change blindness” is the topic of this episode, and both Walter and Darren talk about techniques for becoming aware of change blindness, and strategies for overcoming this debilitating mistake for forex traders.

Darren reveals why he makes his entries “Black and White.” Darren talks about why he places a critical importance on reducing information because information is viewed through the lens of experience. While Walter makes the connection between magicians, elephants, showgirls and the trade you are in right now – and why being in a position reduces your ability to interpret the charts. If you’ve ever wondered why you (or someone you know) is unable to see the obvious, this podcast episode is for you.

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP16_Blinded_By_The_Charts.mp3

Download (Duration: 34:31  / 39.5 MB)

In this episode:

01:23 – Walter was a magician

06:30 – information to trade

08:47 – why don’t you just have an automated system

09:17 – the brain is good at making decisions

11:19 – the market has given me a reason to get out

12:45 – mental tiredness

15:16 – the effect of your outside environment

17:06 – the frog in a pot

20:58 – the way our brain sees stuff is by learning from the past

25:00 – does it make it easier for you to believe in the trade?

28:10 – the gambling word

30:02 – experienced trader vs. newbie trader

Tweetables:

We need to use a certain amount of information to trade. [Click To Tweet].

When we’re trading, we are interacting with the charts and our senses. [Click To Tweet].

Change blindness is the fact that as humans, we ignore small changes. [Click To Tweet].

Download The Full Episode 16 Transcript Here

Walter: We have to be aware that we don’t see new things that pop up, and so as a technical trader, if you trade off the charts, that’s something you have to take into account.

Announcer: 2 traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the 2 Traders podcast.

Walter: In this episode of the 2 Traders podcast, Walter and Darren tackle the topic of change blindness. What is change blindness and what does it mean for traders, especially those traders who use technical analysis? Walter also talks about the elephant and the magician, and Darren talks about why it is that traders are misguided by putting too much psychological energy into the wrong part of the trade.