Index

A1 (trust), 195196

A2 (straightforwardness), 196

A3 (altruism), 196

A4 (compliance), 197

A5 (modesty), 197

A6 (tender-mindedness), 197198

Achievement striving (C4), 199

Actions (O4), 94, 194

Activity (E4), 192193

Activity, style of, 207

Adapting to your own personality traits, 21, 22, 187, 188

Adaptive, 202

Addictive personality, 183185

Adler, Alfred, 78, 79

Adult norms profile sheet, 53, 54

Aesthetics (O2), 194

Agreeableness, 4849, 138139

Agreeableness facets, 195198

Allen, Woody, 28

Altruism (A3), 196

Amygdala, 8, 33, 117

Ancient Greeks, 24

Anger control, style of, 204

Angle, KD, 148151

Angry hostility (N2), 189190

Antisocial personality disorder, 58

Anxiety (N1), 6571, 189

Arrogance, 109

Assertiveness (E3), 192

Attention technique, 86

Attitudes, style of, 208

Automated trading (VisualStation), 100

Autonomy, 120

Avoidant personality disorder, 58

Awareness, 108

Beat the Dealer (Thorp), 166

Beck, Aaron, 79

Beginner’s luck, 104

Behavioral perspective, 18

Bell-shaped curve, 19, 20, 24

Big picture trades, 102

Big two personality dimensions, 2630

Blink (Gladwell), 13

Borderline personality disorder, 58

Brain, 316

  cortex/sub-cortex, 5, 7

  direct/indirect pathway, 9

  DLPFC, 98

  extroverts/introverts, 33

  factoids, 13

  higher, cognitive functions, 62

  neurons, 34

  nucleus accumbens, 14

  outer shell/inner core, 79

  reward network, 1416

Brain filters, 113

Brain pathways, 9

Briggs, Katherine, 37

Buyer’s remorse, 7

By-the-bookers, 209

C1 (competence), 103109, 198

C2 (order), 198

C3 (dutifulness), 198199

C4 (achievement striving), 199

C5 (self-discipline), 199

C6 (deliberation), 200

Career risks, 91

Case studies. See Personality case studies

Categorical trait, 20

CBM, 8587

CBT. See Cognitive behavior therapy (CBT)

Cerebral cortex, 7

Character, style of, 210

Checking your trades, 71

Checklist of rules, 7375

Choleric, 24, 30

Close money management, 96

Closed mindedness, 115116

Cognitive behavior therapy (CBT), 7787

  CBM, 8587

  easy, free method, 8384

  four S’s, 8182

  overview, 79

  pros and cons list, 108

  rational-emotive therapy, 85

Cognitive bias modification (CBM), 8587

Cold-blooded, 204

Competence (C1), 103109, 198

Competitors, 206

Compliance (A4), 197

Confessions of a Radical Tax Protestor (Williams), 138

Confidence, 103109

Conscientiousness, 4950, 100110

  awareness, 108

  beginner’s luck, 104

  big picture trades, 102

  confidence, 103109

  discretionary trades, 102

  overconfidence, 103107, 110

  pattern recognition, 103

  pros and cons list, 108

  research studies, 103, 104105, 105106

  sub-domains/facets, 198200

  systems trading, 100, 101

  underconfidence, 109

  Williams, Larry, 139142

Conscientiousness facets, 198200

Cool Cucumbers, 61

Cooling-off period, 75

Cortex, 5, 7, 8, 9

Costa, Paul T., 39, 119

Creative interactors, 203

Critical concept (distance from mean), 21, 31

Csikszentmihalyi, Mihaly, 123

Defense, style of, 202

Deliberation (C6), 200

Denali Asset Management, 172

Dependent trader, 125128

Depression (N3), 190

Dimensional perspective, 1922

Dimensional trait, 19, 20

Direct pathway (brain), 9

Directed, 205

Discretionary trades, 102

Disease perspective, 1718

Dorsolateral prefrontal cortex (DLPFC), 98

Dreamers, 209

Dutifulness (C3), 198199

E1 (warmth), 191192

E2 (gregariousness), 192

E3 (assertiveness), 192

E4 (activity), 192193

E5 (excitement-seeking), 93, 117118, 193

E6 (positive emotions), 111116, 193

Easy-going, 204

Effective altruists, 210

Emotional reactivity, 60, 61, 63, 77

Emotions, 124, 187

EPI, 38

Excitement-seeking (E5), 93, 117118, 193

External locus of control, 28

Extraversion, 27–28, 4647, 134135

Extraversion facets, 191193

Extrovert, 27, 28

Eysenck, Hans, 26, 27

Eysenck Personality Inventory (EPI), 38

Factor analysis, 26

Fantasy (O1), 193

Fear, 93

“Fear and Greed in Financial Markets: A Clinical Study of Day-Traders” (Lo et al.), 60

Feelings (O3), 194

Feelings of relatedness, 121

Financial risks, 91, 92

Fiscally anxious, 69

Five-factor model (FFM) of personality, 4450

  agreeableness, 4849

  conscientiousness, 4950

  extraversion, 4647

  neuroticism, 4546

  openness, 4748

fMRI, 33

Foti, Domenico, 157

Free-thinkers, 208

Freud, Sigmund, 78

Frontal cortex, 8

Fun, 122

Fun-lovers, 207

Functional magnetic resonance imaging (fMRI), 33

Futures traders, 90

Genesis program, 149

“Get rich quick” behaviors, 93

Gladwell, Malcolm, 13

Glinski, Krystyna, 85

Gloomy pessimists, 201

Go-getters, 207

Goals, 6869

Gold of Exodus, The (Blum), 132

Good students, 209

Greed, 94, 95, 150151

Gregariousness (E2), 192

Grey-colored lenses, 115

Guided imagery, 67

Gut feelings, 12

Habituation, 67

Happiness, 119124

  autonomy, 120

  components, 120

  emotions, 124

  feelings of relatedness, 121

  journal of feelings, 122, 124

  mastery, 120121

  overall life satisfaction, 119

  questions to ask, 122123

Health risks, 91

Height, 19, 21–22

Higher, cognitive brain functions, 62

Hippocrates, 24

Histrionic personality disorder, 2425

Homebodies, 203

Human mind, 12

Hypersensitive, 202

Hyposensitive, 202

Hysterical personality disorder, 2425

Ideas (O5), 115116, 195

Image, 71

Impulse control, style of, 205

Impulsiveness (N5), 7274, 97, 132, 191

Independent trader, 125126

Indirect pathway (brain), 9

Individual Psychotherapy, 79

Innate personality, 98

Intelligence, 20

Interactions, style of, 206

Interests, style of, 203

Internal locus of control, 28

Interviewees. See Personality case studies

Introspectors, 203

Introvert, 28

Invisible gorilla, 111112

Jorm, Anthony, 85

Journal of feelings, 122, 124

Journal of negative perceptions, 115

Journal writing, 71

Jung, Carl, 26, 37

Keck program, 149

Kelly criterion, 166

Leaders, 206

Learning, style of, 209

LeGault, Michael, 13

Life satisfaction, 119

Life story perspective, 18

Limbic lobe, 62

Limbic system, 8

Lo, Andrew W., 60, 103

Locus of control, 28

Logical reasoning, 5

Low-keyed, 201

Madoff, Bernie, 50

Mainstream consumers, 203

Maladaptive, 202

“Married to their opinions,” 112

Mastery, 120121

Mayfield, Cliff, 91

MBTI, 3738

McCrae, Robert R., 39, 119

McHugh, Paul, 17

Mean, 20

Mechanical (systems) trading, 100, 101

Median, 19

Melancholic, 24, 30

Mental rehearsal, 67

Mental retardation, 21

Mentorship, 126, 127

Meta-analysis, 84

“Million Dollar Challenges,” 129

Mind-brain problem, 4

Minnesota Multiphasic Personality Inventory (MMPI), 38

Mixing trading with emotional processing, 83

MMPI, 38

MMPI-2, 38

Modesty (A5), 197

Money Management: Methods and Applications (Unger), 158

Mr. Spock (Star Trek), 11

Multiple trading methodologies, 127128

Myers, Isabel, 37

Myers-Briggs Type Indicator (MBTI), 3738

N1 (anxiety), 6571, 189

N2 (angry hostility), 189190

N3 (depression), 190

N4 (self-consciousness), 190

N5 (impulsiveness), 7274, 97, 132, 191

N6 (vulnerability), 191

Narcissistic personality disorder, 58

Narrow framing, 115116

Nature versus nurture, 32

Negative emotions, 123124

Negative thought, 1

NEO-AC, 38, 39–43

  agreeableness, 4849

  attributes of test, 4142

  conscientiousness, 4950

  extraversion, 4647

  interpreting the test, 5354

  neuroticism, 4546

  norms sheet, 54

  openness, 4748

  short version of test, 40

  sub-domains. See Personality facets

  tips/advice, 4142

NEO-FFI, 40

NEO PI-R. See NEO-AC

Neurons, 34

Neuroticism, 28–29, 4546, 5976

  anxiety, 6571

  checking your trades, 71

  checklist of rules, 7375

  cooling-off period, 75

  emotional reactivity, 60, 61, 63

  fiscally anxious, 69

  goals, 6869

  habituation, 67

  high/low N scores, 75, 76

  image, 71

  impulsivity, 7274

  journal writing, 71

  Lo study, 60

  mental rehearsal/guided imagery, 67

  overtrading, 69, 72

  Peterson study, 61

  revenge trading, 64

  risk, 70

  self-consciousness/vulnerability, 7173

  self-denial, 72

  sub-domains/facets, 189191

  titration, 70

  Williams, Larry, 131134

Neuroticism facets, 189191

Newton, Isaac, 6

Nicholson, Nigel, 91, 92

Nucleus accumbens, 14

O1 (fantasy), 193

O2 (aesthetics), 194

O3 (feelings), 194

O4 (actions), 94, 194

O5 (ideas), 115116, 195

O6 (values), 195

Obsessive-compulsive personality disorder, 58

Odean, Terrance, 104105

Odysseus, 73

One Hundred Million Dollars in Profits (An Anatomy of a Market Killing) (Angle), 148

One-person enterprise, trading as, 120

Openness, 4748, 135137

Openness facets, 193195

Optimism, 111116

  brain filters, 113

  invisible gorilla, 111112

  narrow framing, 115116

  pros and cons list, 114

  successful traders, 113114

  superficial analysis, 114

  too-good-to-be-true story, 114115

  what-if scenarios, 114

Order (C2), 198

Outlier scores, 36, 54

Over-controlled, 205

Overconfidence, 103107, 110

Overly dependent trader, 125128

Overly emotional, 201

Overtrading, 69, 72, 105, 117

PA, 119

Paroxetine (Paxil), 77

Pathological trading behavior, 184185

Pattern recognition, 103

Perfect trader, 178182

Performance anxiety, 66

Personality, 187

Personality case studies

  Angle, KD, 148151

  perfect trader, 178182

  Ramsey, Scott, 172177

  Raschke, Linda, 152156

  Unger, Andrea, 157164

  Vince, Ralph, 165171

  Williams, Larry, 129142. See also Williams, Larry

  Zanger, Dan, 143147

Personality change, 59, 187

Personality disorders, 24, 5758

Personality domains. See Five-factor model (FFM) of personality

Personality facets, 5152, 189200

  achievement striving, 199

  actions, 194

  activity, 192193

  aesthetics, 194

  altruism, 196

  angry hostility, 189190

  anxiety, 189

  assertiveness, 192

  competence, 198

  compliance, 197

  deliberation, 200

  depression, 190

  dutifulness, 198199

  excitement-seeking, 193

  fantasy, 193

  feelings, 194

  gregariousness, 192

  ideas, 195

  impulsiveness, 191

  modesty, 197

  order, 198

  positive emotions, 193

  self-consciousness, 190

  self-discipline, 199

  straightforwardness, 196

  tender-mindedness, 197198

  trust, 195196

  values, 195

  vulnerability, 191

  warmth, 191192

Personality inventory

  commonly used inventories, 3738

  defined, 35

  weaknesses/limitations, 3537

Personality styles. See Styles of personality; Styles of personality (quadrants)

Personality tests. See Personality inventory

Personality traits

  big two personality dimensions, 2630

  criteria that must be met, 24

  defined, 23

Personality trap, 9798

Perspectives of mental life

  behavioral perspective, 18

  dimensional perspective, 1922

  disease perspective, 1718

  life story perspective, 18

Peterson, Richard, 61

Phlegmatic, 24, 30

Plodders, 207

Ponzi scheme, 50

Portfolio Management Formulas (Vince), 167

Positive affect (PA), 119

Positive emotions (E6), 111116, 193

Prehistoric man, 89

Prison guards experiment, 34

Problem gamblers, 93, 94

Process goals, 69

Progressives, 208

Pros and cons list, 108, 114

Psychosomatic medicine, 12

Ramsey, Scott, 172177

Raschke, Linda, 141, 152156

Rational-emotive therapy, 85

Recreational risks, 91

Relatedness, 121

Relaxed, 205

Reluctant scholars, 209

Repin, Dmitry V., 60, 103

Research studies/articles

  Costa and McRea, 119

  Glinski, 85

  invisible gorilla, 111112

  Jorm, 85

  Knutson et al., 77

  Lo, Repin and Steenbarger, 60, 103

  Mayfield et al., 91

  Nicholson et al., 91, 92

  Odean, 104105

  Peterson, Richard, 61

  Smith and Whitelaw, 98

  Tang, 85

  trader overconfidence, 105106

  University Hospital Zurich, 98

  Williams and Williams, 62

Resolute believers, 208

“Respect the market,” 104, 106, 109

Revenge trading, 64

Revised NEO Personality Inventory (NEO PI-R). See NEO-AC

Rice, Jerry, 66, 67

Risk, 70

Risk aversion, 8899

  dorsolateral prefrontal cortex (DLPFC), 98

  factors to consider, 99

  fear, 93

  greed, 94, 95

  immutability, 9899

  innate personality, 98

  Openness facets (O4 to O6), 9496, 99

  prehistoric man, 89

  problem gamblers, 93, 94

  research studies, 91, 92, 98

  rewards, 8889

  risk-taking, 90

  surfing, 9697

  volatility, 97

Risk-Opportunity Analysis (Vince), 165

Risk-taking, 90

Rogers, Buck, 6

Rose-colored lenses, 111, 115

Safety risks, 91, 92

Sanguine, 24, 30

Selective serotonin reuptake inhibitors (SSRIs), 77

Self-consciousness (N4), 190

Self-consciousness/vulnerability, 7173

Self-denial, 72

Self-discipline (C5), 199

Self-mentorship, 127

Self-promoters, 210

Sense of identity, 121

Sexual intimacy, 89

Shakespeare, William, 34

Shout it out (CBT), 8182

Slavney, Phillip, 17

SLS, 119

Smith, Daniel, 98

Social learning theory, 32

Social risks, 91, 92

Soros, George, 1112

Speculation, 90, 183

SSRIs, 77

“Stable,” 29

Steenbarger, Brett N., 60, 103

Stop loss, 132, 135

Stop sign (CBT), 81

Straightforwardness (A2), 196

Styles of personality, 5556, 201210. See also Styles of personality (quadrants)

  activity, 207

  anger control, 204

  attitudes, 208

  character, 210

  defense, 202

  impulse control, 205

  interactions, 206

  interests, 203

  learning, 209

  well-being, 201

Styles of personality (quadrants)

  adaptive, 202

  by-the-bookers, 209

  cold-blooded, 204

  competitors, 206

  creative interactors, 203

  directed, 205

  dreamers, 209

  easy-going, 204

  effective altruists, 210

  free-thinkers, 208

  fun-lovers, 207

  gloomy pessimists, 201

  go-getters, 207

  good students, 209

  homebodies, 203

  hypersensitive, 202

  hyposensitive, 202

  introspectors, 203

  leaders, 206

  the lethargic, 207

  low-keyed, 201

  mainstream consumers, 203

  maladaptive, 202

  over-controlled, 205

  overly emotional, 201

  plodders, 207

  progressives, 208

  relaxed, 205

  reluctant scholars, 209

  resolute believers, 208

  self-promoters, 210

  temperamental, 204

  timid, 204

  traditionalists, 208

  the unassuming, 206

  under-controlled, 205

  undistinguished, 210

  upbeat optimists, 201

  welcomers, 206

  well-intentioned, 210

Sub-cortex, 5, 7

Subconscious, 2

Subjective life satisfaction (SLS), 119

Subjective well-being, 119

Substitute (CBT), 82

Superficial analysis, 114

Surfing, 9697

Sustain (CBT), 82

Systems trading, 100, 101

T scores, 54

Tang, Tony Z., 85

Temperament, 26

Temperamental, 204

Tender-mindedness (A6), 197198

The lethargic, 207

The unassuming, 206

Think: Why Crucial Decisions Can’t Be Made in the Blink of an Eye (LeGault), 13

Thoughts, actions, and feelings, 1, 2

Thrill factor, 93

Thurstone, Louis L., 26

Tight stops, 96

Time out, 109

Timid, 204

Titration, 70

TMS, 98

Too-good-to-be-true story, 114115

Traditionalists, 208

Trait theory, 32

Transcranial magnetic stimulation (TMS), 98

Trust (A1), 195196

Typological tests, 37

Under-controlled, 205

Underconfidence, 109

Undistinguished, 210

Unger, Andrea, 157164

“Unstable,” 29

Upbeat optimists, 201

Vagus nerve, 12

Values (O6), 195

Viennese Psychological Society, 79

Vince, Ralph, 165171

VisualStation, 100

Volatility, 97

Vulnerability (N6), 191

Warmth (E1), 191192

Wednesday Psychological Society, 79

Welcomers, 206

Well-being, style of, 201

Well-intentioned, 210

What-if scenarios, 114

Whitelaw, Robert, 98

Williams, Larry, 129142

  agreeableness, 138139

  conscientiousness, 139142

  extraversion, 134135

  neuroticism, 131134

  openness, 135137

Wilson v. Johnson & Johnson, 36

Zanger, Dan, 143147