Portfolio Management Software
Cognitive dissonance is the term used to describe the discomfort people have when they are expected to believe two or more ideas that, on their face, seem to be contradictory. Backtesting is the application of a trading system to an historical data series. Expert opinions of backtesting bring about cognitive […]
By Terrance Odean 1998 Abstract / Introduction: I test the disposition effect, the tendency of investors to hold losing investments too long and sell winning investments too soon, by analyzing trading records for 10,000 accounts at a large discount brokerage house. These investors demonstrate a strong preference for realizing winners […]
Do you think adaptation to the realities of the market is the most important thing? Many times in the past I’ve written about the need to adapt, the need to be able to change your behavior relative to the market because the markets are ever changing. I’ve stated that mechanical […]
Reproduced with permission Brett Steenbarger Sometimes you hear people debate whether trading success is attributable more to trading techniques vs. psychology. The answer, of course, is both-but the point where the two intersect is risk management. A huge percentage of trading success or failure can be laid at the doorstep […]
Reproduced with permission Brett Steenbarger There are quite a few books written on how to make money in the market. Some of them are even written by people who have made money as traders! What you don’t see often, however, are books or articles written on how to lose money. […]