Curtis Faith (Trading Your Gut) joins Vince to discuss using your right brain as well as your left brain to make trading decisions. Curtis has evolved from robotic trading to intuitive trading. Intuitions and emotions are two different things when trading. Genetics play a role in trading. The natural reaction to fear is avoidance which is not helpful in trading. New traders provide trading opportunities because they are emotional traders and are making mistakes. (mp3)

Vince points out that new traders have a lack of self-awareness which prevents you from seeing the truth in the markets. Build trading plan with left brain. Use the right brain to pick entries and exits. Use intuition to signal divergences from what is “normal”. There are some people who do not have the talent/skills to trade. It is hard for intelligent people to accept being wrong. (mp3)

Vince and Curtis explain why pilots make good traders because they have to train for the worse and make decisions in uncertain environments. You have to be confident in your skills to pull the trigger. Right brain analysis must be used in a left brain model of how the market works. Train right brain to make decisions quickly. Use left brain to confirm with fundamentals. (mp3)

Curtis explains how visual perception bias can get you in trouble. Automating trades is a little more difficult because you can’t program in right brain intuition. Recency bias makes traders give more weight to recent events. Multiple time frame analysis helps to minimize this type of bias. Most systems have not proven to be successful. You have to trade YOUR system. (mp3)

New winning number is 367722.

Vince is in Houston on Saturday giving a preso at the OTA office.

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