My guest today is Charles Faulkner, an author, trader, and an expert on modeling the knowledge and performance of exceptional individuals. He was originally featured in "The New Market Wizards" by Jack Schwager.
The topic is trading psychology.
In this episode of Trend Following Radio we discuss:
- The notion of fictional people and why famous figures in finance are "fictional"
- The importance of narratives, stories, and metaphors
- The halo effect and deluding ourselves
- The difference between a story and a strategy
- The nature of independent thinking; herd behavior
- Ego, ignorance, and authority
- The five different types of minds: the experiencing mind, the imaginative mind, the reasoning mind, the reflective mind, and the generative mind
- System one and system two
- Why words don't change people but experience does
- Experience base and the difference between amateur and professional traders
- The two kinds of market wizards
- Language in the context of the five different types of minds
- The importance of asking "how" does the market work over "why"
- The importance of luck and time in the case of Warren Buffett
- Why you shouldn't get your excitement from trading
Jump in!
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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.
To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/
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