In this Ted talk below, writer Julia Galef argues that making good decisions is dependent on employing a scout mindset. This talk is helpful for us as traders to make the best trading decisions.
Galef breaks mindset into two categories: scout mindset and soldier mindset. The soldier mindset defends their ideas. This “motivated reasoning” tries to make some ideas win and others lose. Contrast that with the scout mindset, where you try and get an accurate picture of what is really there.
How does this relate to trading?
“TSLA has to trade lower. Did you see that article today on Bloomberg comparing it to VRX? These buyers today are completely wrong. It is just going up today because the market is strong (oops the market is negative). Bunch of morons.”
You might say that is a soldier mindset.
“I thought this WDC would finish HOD. But it held under VWAP for 30 minutes. It traded well below VWAP for that 3o minutes. The market spiked, WDC traded back into VWAP, and then sunk to LOD again. It is not confirming my thesis presently, so I will lighten up.”
You might say this is a scout mindset.
The scout mindset will help you make better trading decisions. It will help you improve daily as a trader. It will make you become more sustainable as a trader, as markets are always changing.
I hope you enjoy the video and you find it helpful to make better trading decisions.
*no relevant positions