Trading Psychology

The illusion of control

Last Updated July 17th, 2016

Leaving the trees could have been our first mistake. Our minds are suited for solving problems related to our survival, rather than being optimised for investment decisions. We all make mistakes when we make decisions. The list below gives a top ten list for avoiding the most common investment mental pitfalls. Continue reading

Psychology of trading

Last Updated December 10th, 2013

By Walter T Downs. When trading goes right, it can be a great feeling. When trading goes wrong it can be a nightmare. Fortunes are made in a matter of weeks and lost in a matter of minutes. This pattern…

Losing to win

Last Updated December 10th, 2013

This article reproduced with permission from Matt Blackman The hardest but also most important lesson to learn in trading is how to handle losses gracefully. Most traders will inevitably encounter a string of losses at some point, so those who…

Information processing and trading

Last Updated December 10th, 2013

This article reproduced with permission from Brett Steenbarger Here is an interesting observation drawn from the past six months of working with a large group of full-time traders: The most successful of the group never change the displays on their…

Who are you?

Last Updated November 30th, 2013

By Linda Raschke. Both experienced and aspiring traders spend a great deal of time trying to recognize patterns in the markets – charts and indicators on multiple time frames, seasonal tendencies around specific times of the month or year, sentiment…