Surfing for ProfitsQ: How does the mind work? What does the mind do that helps
you make yourself a better trader?
A: Well, I think always having a plan and being organized pro-
duces discipline. If you’re able to do the same thing over repeti-
tively, I think that helps. Also, there are different ways of processing
information by remembering the good moments and forgetting the
bad moments, as well as having clarity of mind to know when to be
more alert or when to pull back. As a person, if you’re getting ner-
vous about a position what should you do in that moment? There
is a psychology to that. You need to do something because once
you start getting nervous you stop thinking clearly, so maybe your
cognitive action is to close half you position. That’s what psychol-
ogy has been able to teach me—to be able to manage myself. Like
when you said, what do you do when you have several down days
in row? Well, my psychology has taught me that I don’t reflect on
that. I look at the situation with the logic of what’s happened over
the last several years. Namely, that I am successful more times
than I am not. I focus on that rather than letting my mind go
astray.
Lessons from Ashkan Balour
Trend Is Continuous but Turn Happens Only OnceSometimes someone makes an observation that seems so obvious
that you have a “V-8” moment, slapping yourself on the head to say,
“Why didn’t I think of that?” Ashkan’s view that it is far easier to
trade with a trend—because a trend is essentially continuous while
turns are rare and difficult to time—is one such kernel of wisdom
we picked up in our interview with him. Although in principle,
the majority of novice traders agree that trading with the trend
is the way to go, in reality most of traders are inveterate top and
bottom pickers. Too many times we have seen traders get seduced
with the notion that they are smarter than the market as they try
to fade every rally and buy every dip. Few, like Chuck Hays, are
excellent contrarians and can execute this strategy well. Most wind