All traders are subject to the same psychological traps, and when trading OPM – other peoples money – a trader may have certain advantages and disadvantages that make their situation unique.
OPM traders may have access to superior technology, better market analysis, faster access to more accurate information, and constant feedback from peers and mgrs. They may also be required to trade only certain instruments, timeframes, or strategies, and doing it all with larger size which may require special entry and exit tactics, and strict adherence to risk management rules.
Both independent and OPM traders experience performance expectations from others, but OPM traders experience additional external expectations coming from clients, managers, peers, and even competitors. Public performance and increased external expectations often result in increased performance anxiety.
Performance feedback from peers and managers can be a double edge sword, it can be an asset and it can be a source of additional pressure. Feedback is supposed to be productive and have a positive impact on performance, but to a large degree the positive aspect depends on the dynamics of the receiver (trader) and the giver (manager) of feedback.
In both the media and on the street, we tend to hear more about performance extremes, the best and the worst. Average level performance is not interesting enough to talk about in the media and in the blogs; a fair amount of mid-level performance is relatively overlooked. Although average performers at a firm may receive less feedback compared to extreme performers, all OPM traders are in a near constant state of comparison to others. Constant measurement of performance and constant comparison to others can be a breeding ground for anxiety and pressure. External expectations and performance anxiety can have an exponential effect on the trader’s mental game and performance.
There’s a reason why top performers in sports, entertainment, and business are using coaches more and more, they’re willing to do whatever it takes to gain an edge to maintain peak performance or get to the next level.
Andrew is a recognized expert with extensive experience working with the psychology of risk, opportunity, and uncertainty in the world of professional financial performance; he provides specialized training, coaching, and consulting services for trading firms.
The process usually involves a combination of education, coaching, and practical tools to assist decision making in the face of constant uncertainty and ambiguity. Specific areas include talent assessment for new hires or promotions, emotion analytics, learning specific mental strategies to make better decisions in emotionally charged situations, managing performance anxiety, and building resiliency. Andrew also utilizes biometric data to train traders and PMs to increase the time they spend in the “flow state”. Additional areas of Andrew’s expertise include developing intuition and recognizing the difference between intuition versus impulse, developing creativity and cognitive flexibility, and managing ego involvement.
OPM consulting can involve both group training and one-on-one coaching, virtual or in-person. Andrew is known for his ability to engage an audience and is able to distill complex information into informative and practical tools. Please contact Andrew to discuss the needs of your firm and fees.