Deep Survival by Gonzales

What It’s About

Deep Survival is a book that talks about the mental states of those who live or die in life threatening situations. It is about the wild side of human risk taking, what our brains can and cannot handle, and what we can do to improve our odds of success when the heat is turned up.

How it Relates to Trading

Most of my clients run their desks using a blend of manual and automated steps to capture their edge and manage risk. Every day, steps are taken to alter processes. Some of these shifts are done well, some not so much. Even slow intentional decision making can falter under the weight of uncertainty.

What I learned from the book is simple: mindset trumps all. Habits trained and built up before a stressor arrives is key because our IQ decreases while in the heat of battle. Preparedness, methods to find calmness, and thorough process - all contributors to mindset - are ways to reduce the probability of worst-case scenarios.

A great read for a high intensity industry such as ours.

Happy Hunting!

Pallino: On Target