We humans are highly influenceable creatures.  A recent study shows that where you vote, church vs. school, affects how you vote.  You would think that given what is involved that we would have our minds made up before we enter the voting booth, but alas that is not the case.  This seems to be another example of how voters are at best “systematically biased.”

Now extend this idea to trading where instead of voting once every couple of years you are voting every day with your trades, or lack thereof.  A year ago or so we had a post up noting how your trading space affects how you approach the markets.  The same can be said for what you are doing during the day as well.  Are you watching financial television or are you conducting research?  How you spend your time will greatly affect how you go about trading.

The point isn’t that there is only one way trade.  In fact the great message of the markets is that you need to match your personality with your preferred trading method.  The point in all this is that you should not let unconscious cues from your environment affect your trading in ways you don’t fully understand.  So design your workspace and workday in a way that enhances and reflects your preferred methodology as opposed to letting the blinking numbers on the screen drive your trading.

Items mentioned above:

Where you vote may affect how you vote.  (Scientific American)

Dumb voters.  (Buttonwood notebook)

Trading spaces.  (Abnormal Returns)

A few simple rules for money managers.  (Contrarian Edge)

Michael Martin on finding your own trading voice.  (Abnormal Returns)

 

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