market psychology

The title of this article is not an assumption that you, astute reader, are little more than a robot following the direct and implied commands of other robots when trying to make logical sense of the state of modern financial markets.  Personally, I have found that I need to stay on a path of post-deprogramming maintenance in order to stay right with a complex market backdrop.

On an inward-looking basis, we as investors and traders are faulty humans going up against robots (Ref. Rise of the Quantitative Robots) that are much smarter than we are with numbers, with data mining and with extrapolation.  What do we have, puny little human brains with all associated biases, ego distortions and other faults?  Yes, that is us.

We can mitigate these things by committing to double check our egos, first and foremost making sure we realize that we will err, we are not the best there is and the market does not care even one little bit about us.  We can commit to being the best ‘me’ we can be.

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