Market Curiosity: Exploring Markets And Systems

January 31, 2011

A trading journal can help encode lessons for future use

Filed under: Editorials — Tags: — Jeff Fitzmyers @ 12:09 pm

Jakob Nielsen: Students who completed an elaborate test after reading the text remembered 145% more content after a week than students who simply read the text and didn’t do anything else.

Interestingly, the people who took the test thought that they had learned 15% less than the people who read the text but didn’t take the test, even though they’d actually learned much more.

In this case, it’s obvious (after the fact, of course) why the test-takers thought they’d learned less when they’d actually learned more: taking the test exposed whatever holes they had in their knowledge and thus (correctly) undermined their confidence. In contrast, people who read the text but didn’t get tested were smug and predicted that they’d score better than they actually did on the following week’s exam.

If a trading journal is analogous to taking a test, it would be important to be gentile with yourself when reviewing mistakes.

It’s long been an established finding in psychology that the more you remember something, the better you remember it. The very act of recalling something encodes it stronger for future use.

Market Curiosity is my trading journal.

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