The Empowered Trader by Mark Fechner

Learning to Respond to the Market, not just React

Trading and Motion Induced Blindness

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A trader, client and good friend of mine, Tony Ingrassia, came across this curiosity and passed it along.  At first glimpse, it seems like one of those paintings that if you stare at it long enough you can see another picture with the picture.  Stare at the center dot and the other dots disappear.  When you blink or move your eyes, they reappear.   Here’s a link to the exercise.

Motion Induced Blindness

Having stared at this it got me to thinking.  What if staring at charts does the same thing.  How many times have you stared at your charts and gotten in a trade to immediately regret it because you now see something that you didn’t see 5 minutes before?  As traders, are we experiencing our own version of Motion Induced Blindness?

Perhaps the best way to avoid this type of blindness is to simply look away from our computer screens.  Before we commit our money to the market, we get up, walk to the kitchen, pet the dog, get a drink of water, and then come back to the charts to see if that great opportunity is still there.  It might save some valuable heartache not to mention money to give ourselves the chance of a second look.

Mark
etradingcoach

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Written by etradingcoach

February 11, 2012 at 2:06 pm

Posted in Decisions, Perceptions

Tagged with ,

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