Episode #8 - Flow State and Cultivating Agency

🎙️ Episode 8 – Flow State and Cultivating Agency

In this episode of Risk On, Ben dives into one of the most counterintuitive truths in trading: the harder you try, the worse your results can get. Welcome to The Performance Paradox - where effort becomes the enemy of flow, over-optimisation ruins your models, and intuition quietly holds the key to long-term success.

We explore:

🔹 The psychology of flow states and how ease - not effort - drives elite performance

🔹 Why over-optimising your strategy can destroy its real-world resilience

🔹 The neuroscience of gut feelings and how top traders leverage intuitive intelligence

🔹 How to train your “trading instinct” while managing emotions and avoiding mental noise

🔹 The hidden blocks that stop your intuition from showing up when you need it most

#Trading #RiskManagement #DayTrading #SwingTrading #TradingPsychology #TradingPodcast

Reference List

Baylor, A. L. (2001). A U-shaped model for the development of intuition by level of expertise. New Ideas in Psychology, 19(3), 237–244. https://doi.org/10.1016/S0732-118X(01)00008-5

Bruguier, A. J., Quartz, S. R., & Bossaerts, P. (2010). Exploring the nature of “trader intuition.” Journal of Finance, 65(5), 1703–1723. https://doi.org/10.1111/j.1540-6261.2010.01592.x

Coates, J. M., & Herbert, J. (2008). Endogenous steroids and financial risk taking on a London trading floor. Proceedings of the National Academy of Sciences, 105(16), 6167–6172. https://doi.org/10.1073/pnas.0704025105

Dane, E., & Pratt, M. G. (2007). Exploring intuition and its role in managerial decision making. Academy of Management Review, 32(1), 33–54. https://doi.org/10.5465/amr.2007.23463682

Fenton-O’Creevy, M., Soane, E., Nicholson, N., & Willman, P. (2011). Thinking, feeling and deciding: The influence of emotions on the decision making and performance of traders. Journal of Organizational Behavior, 32(8), 1044–1061. https://doi.org/10.1002/job.720

Gurnell, M., Kandasamy, N., Garfinkel, S. N., Page, L., Hardy, B., Critchley, H. D., & Coates, J. M. (2016). Interoceptive ability predicts survival on a London trading floor. Scientific Reports, 6, Article 32986. https://doi.org/10.1038/srep32986

Hagen, H. (2024, July 26). Intuitive intelligence and 8 common blocks that impact it. Forbes Coaches Council. https://www.forbes.com/sites/forbescoachescouncil/2024/07/26/intuitive-intelligence-and-8-common-blocks-that-impact-it/

Hogarth, R. M. (2001). Educating intuition. University of Chicago Press.

Isham, A., & Jackson, T. (2023). Finding flow: Exploring the potential for sustainable fulfilment. Centre for the Understanding of Sustainable Prosperity, University of Surrey. https://www.cusp.ac.uk/publications/flow-report-2023/

Khatri, N., & Ng, H. A. (2000). The role of intuition in strategic decision making. Human Relations, 53(1), 57–86. https://doi.org/10.1177/0018726700531004

Lieberman, M. D. (2000). Intuition: A social cognitive neuroscience approach. Psychological Bulletin, 126(1), 109–137. https://doi.org/10.1037/0033-2909.126.1.109

Salas, E., Rosen, M. A., & DiazGranados, D. (2010). Expertise-based intuition and decision making in organizations. Journal of Management, 36(4), 941–973. https://doi.org/10.1177/0149206309350084

Simon, H. A. (1987). Making management decisions: The role of intuition and emotion. Academy of Management Executive, 1(1), 57–64. https://doi.org/10.5465/ame.1987.4275905

Starks, A. (n.d.). Be careful what you wish for: The perils of over-optimization. Medium. https://austinstarks.medium.com/be-careful-what-you-wish-for-the-perils-of-over-optimization-2f1a84ef907f

Trading Literacy. (2024). Intuitive trading strategy: Unveiling the path to market mastery. https://tradingliteracy.com/intuitive-trading-strategy/

Vohra, S., & Fenton-O’Creevy, M. (2014). Intuition, expertise and emotion in the decision making of investment bank traders. In M. Sinclair (Ed.), Handbook of research methods on intuition (Ch. 7). Edward Elgar Publishing.