Generation of additional income through stock trading from home
In the wake of the recent coronavirus scare traders are confined to their homes and are missing out on the buzz of the trading market.
Brett Steenbarger, a clinical associate professor of psychiatry and behavioral sciences at SUNY Upstate Medical University in Syracuse, New York with a specialization in trader technology says, “I’m a firm believer that we set the tone for our day by what we do at the start of the day. I don’t start by looking at market quotes, news, emails, or chats. I start by loving and serving those I love. Actions, repeated, transform us: We become what we do.”
In a conversation with Mark Gilbert he revealed a lot about how he is engaging in stock trading from home amidst the pandemic.
On being asked about his practice of re-viewing trades, by going back through charts showing things like price action and volumes minute-by-minute, rather than just reviewing them, he explains, “What we’re doing is not just looking them over, we are re-experiencing them. What we experience is what we internalize. Traders I worked with in Chicago some years ago, they had a recording, they would replay the markets they had traded and literally re-experience what had happened, what they had been thinking, but now in the context of being an observer and being able to see the opportunities that they perhaps missed, correct the mistakes that they made. That re-viewing accelerated their learning curves and was probably the number one thing they did that was most effective in spurring their development.”
He further explains the advantages of talking about trading ideas out loud with yourself.
“Any time we talk aloud, we become the listener as well as the speaker. It gives our ideas a greater objectivity. We become more aware of those ideas, it adds a layer of mindfulness to what we’re doing. Let’s say I have an impulse to buy or sell an asset, maybe because it’s moving a particular way and I don’t want it to move against me. If I say out loud what I’m thinking and what I’m about to do, immediately I can recognize if it sounds ridiculous: “This is not how I do my best money management, I’m being completely reactive.” I would be embarrassed to speak it out loud to a valued colleague. We get a layer of self-observation when we talk out loud that can be really useful. It makes us in a certain sense accountable.”
On being asked about how top-notch traders are dealing with the implications of the current pandemic, Steenbarger explains the importance of positive emotional experiences in the field of trading as well.
“That is the top question I’ve been dealing with in talking with portfolio managers, team members at hedge funds and individual traders. Being in this lockdown mode, working from home, they don’t have the same level of stimulation that they had when they were in the regular working world and they don’t have the same level of stimulation in their personal lives. They are overwhelmed because they have no balance between the work and the responsibilities. All those things that would normally be balancing factors, that produce the positives, they have less access to. Positive emotional experiences really provide us with a buffer against stress. We can deal with a lot of pressure, a lot of uncertainty, if we have positive experiences to balance that, so the stress doesn’t become distress. So many people I work with are lacking those positives.”
Writer – Arunima SenGupta