Introducing Inside the Mind of a Trader
Schwab's new video series Inside the Mind of a Trader looks at how brilliant traders are wired. Dr. Indre Viskontas, a professor of psychology at the University of San Francisco, interviewed the best in the business to find out how they play the mental game of trading. From inside of Chicago's storied Steppenwolf Theatre, these traders give perspectives that may help you think through your trading strategies and learn how to refine your approach.
Episode 1, Kathy Lien, BK Asset Management
Kathy Lien is a co-founder and foreign exchange trader at BK Asset Management. Her strategy relies on having a strong trading plan to guide buy and sell decisions. She said that instinct is simply experience over time, and that leads to brilliant trading.
Lien learned to manage both risk and emotion through careful processes. She trades only at the open of the U.S. and Asian markets, and she avoids the fear of missing out by focusing on her goal, which is to place winning trades. If she is sticking to her trading plan, she doesn't agonize about profits she might've missed.
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Learn more after you watch:
- Foreign exchange offers potential trading opportunities to some traders. Learn the basics of currency trading in this introductory article about this $6 trillion market.
- A trading plan can help you trade. Learn how to create your own by watching this video on writing personalized trading plans.
- Markets tend to be active at the open because traders are digesting all the available information. Every day, Schwab publishes the latest news for you to read before you start your trading day.
Episode 2, Stinson Dean, Deacon Lumber Company
Stinson Dean trades lumber, a key commodity in the construction business. He learned to analyze patterns and probabilities while playing quarterback in college. He applies this skill to understanding what could happen to lumber prices as each variable in the market changes.
While many people think of memory as the ability to recall things that happened in the past, Dr. Viskontas explained that stored memories tend to be inaccurate. Instead, they're better used to simulate possible future events and inform decisions. Dean applies his past experiences to trade brilliantly.
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Learn more after you watch:
- Many traders use patterns in past prices to interpret recent market activity. Watch this video to learn more about how traders look for price action in charts.
- Watch this video to find out more about commodity futures trading at Schwab.
- Having a process you can follow consistently has the potential to improve your trading. Read this article for some tips on building a consistent process.
Episode 3, Matt Andresen, Headlands Technologies
Matt Andresen knows electronic trading. He's currently co-chairman of Headlands Technologies, a proprietary trading firm. He previously worked as an executive at Citadel Derivatives Group and was the President and CEO of Island ECN. He believes that programs can remove cognitive biases from trading, but he also thinks that brilliant programmers bring the human intuition needed to understand longer-term market trends. Combining both quantitative and intuitive trading makes for a stronger algorithm, he believes. Andresen was a varsity athlete in college, and he brings that mindset to trading.
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Learn more after you watch:
- Listen to this episode of Schwab's WashingtonWise podcast and learn ways to manage your emotions in volatile markets.
- Electronic tools aren't just for high-frequency traders. This tutorial will show you how to use thinkScript® on thinkorswim® to create your own indicators.
- Experience a trading simulator without losing real money and build your confidence by practicing your trades with thinkorswim paperMoney®.
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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
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The information provided through this event is for general informational purposes only and is not advice or a recommendation. Any views expressed by third-party speakers are solely their own and may not represent those of Charles Schwab. Charles Schwab does not guarantee the accuracy, completeness, or reliability of information provided by third parties. Any materials are provided only for your personal use and are designed to be used only in conjunction with the event—you may not reproduce, retransmit, distribute, disseminate, sell, publish, broadcast or circulate them without express prior written consent.
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