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EP23: Confidence
The danger in thinking you are the shizz-nit is clear, and Darren outlines it in the form of the Dunning-Kruger effect.
We also step into the one dangerous idea perpetually losing traders have about everyone else.
Why banks are happy lemon juice is not a potent “invisible juice.”
What the fundamental attribution error has to do with trading for profits.
How to get on track if you don’t realize your shortcomings, and…
What little kids and yoga teachers can help you with, when it comes to your trading.
http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP23_Confidence.mp3
Download (Duration: 22:50 / 26.1 MB)
In this episode:
00:56 – Dunning-Kruger effect
03:43 – estimate your intelligence
05:40 – a dangerous line of thinking
09:24 – lemon juice example
12:43 – meta-cognition
16:26 – which element of trade are we talking about?
18:34 – meditation
20:14 – do you want to be a competent trader?
21:50 – sabbatical
Tweetables:
If you believe that you’re brilliant, it may be evidence you are certainly not. [Click To Tweet].
The more time you spend away from charts, the better your trading gets. [Click To Tweet].
To be a competent trader, take care of your mind first. [Click To Tweet].
Download The Full Episode 23 Transcript Here
Darren: If you have a bad method and you trade inconsistently, even if you believe you’re doing brilliantly, then you are going to keep blowing up your account.
Announcer: Two traders, Darren and Walter pull back the curtain on profitable trading systems, consistent money management and profitable psychological triggers. Welcome to the Two Traders Podcast.
Walter: Welcome back to the Two Traders Podcast. I’m Walter Peters. I’ve got Darren on the line. Hey there Darren.
Darren: Evening, Walter.
Walter: Today, Darren, you’ve come up with a beauty and I’m very excited to jump into this one. This is the Dunning–Kruger effect. For those that are unaware of what this term is, please explain to our audience what the Dunning–Kruger effect is so we can dig into how this possibly relates to our trading.
Darren: This is a new one on me. I keep finding out these knew cognitive biases, they’re called. They’re pretty scary as well as enlightening. Basically Dunning and Kruger were two professors at Cornell University. They wrote a paper called Unskilled and Unaware of It. They discovered that there was this gap between people’s self-assessed competence and their real abilities. They argued that incompetent people suffer form two consequences. One of them is that their incompetence leads them to make really bad decisions. The more important one is that they don’t have the ability to r...
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By Walter PetersThe danger in thinking you are the shizz-nit is clear, and Darren outlines it in the form of the Dunning-Kruger effect.
We also step into the one dangerous idea perpetually losing traders have about everyone else.
Why banks are happy lemon juice is not a potent “invisible juice.”
What the fundamental attribution error has to do with trading for profits.
How to get on track if you don’t realize your shortcomings, and…
What little kids and yoga teachers can help you with, when it comes to your trading.
http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP23_Confidence.mp3
Download (Duration: 22:50 / 26.1 MB)
In this episode:
00:56 – Dunning-Kruger effect
03:43 – estimate your intelligence
05:40 – a dangerous line of thinking
09:24 – lemon juice example
12:43 – meta-cognition
16:26 – which element of trade are we talking about?
18:34 – meditation
20:14 – do you want to be a competent trader?
21:50 – sabbatical
Tweetables:
If you believe that you’re brilliant, it may be evidence you are certainly not. [Click To Tweet].
The more time you spend away from charts, the better your trading gets. [Click To Tweet].
To be a competent trader, take care of your mind first. [Click To Tweet].
Download The Full Episode 23 Transcript Here
Darren: If you have a bad method and you trade inconsistently, even if you believe you’re doing brilliantly, then you are going to keep blowing up your account.
Announcer: Two traders, Darren and Walter pull back the curtain on profitable trading systems, consistent money management and profitable psychological triggers. Welcome to the Two Traders Podcast.
Walter: Welcome back to the Two Traders Podcast. I’m Walter Peters. I’ve got Darren on the line. Hey there Darren.
Darren: Evening, Walter.
Walter: Today, Darren, you’ve come up with a beauty and I’m very excited to jump into this one. This is the Dunning–Kruger effect. For those that are unaware of what this term is, please explain to our audience what the Dunning–Kruger effect is so we can dig into how this possibly relates to our trading.
Darren: This is a new one on me. I keep finding out these knew cognitive biases, they’re called. They’re pretty scary as well as enlightening. Basically Dunning and Kruger were two professors at Cornell University. They wrote a paper called Unskilled and Unaware of It. They discovered that there was this gap between people’s self-assessed competence and their real abilities. They argued that incompetent people suffer form two consequences. One of them is that their incompetence leads them to make really bad decisions. The more important one is that they don’t have the ability to r...