Trader Psych: Brent Steenbarger: Getting On Tilt

“Tilt” is frustrated, reactive behavior that sends a rush of blood to activate our instinctual behavior – fueling “flight or fight” response (fear/anger). Symptoms of “on tilt” behavior include over-trading, continually increasing position sizes, inability to understand why you made certain trades when you look back. Since we want the logical, rational parts of our mind to be in charge instead, here’s a quick summary of trading psychologist Brent Steenbarger’s remedies for “on tilt” behavior:

1. Focus on breathing slowly and on body movements that center and connect the mind and body (such as moving hands up and down in front of you).
2. Focus on process, not on outcome or expectation. Focus on making each trade a good one and on being a good trader, not on the money.
3. Build up “self-efficacy” (confidence in yourself as a person who can reach your goals) by not reacting to the market, but being proactive

Leave a Reply

Your email address will not be published. Required fields are marked *