Close

psychology

Expose yourself! A powerful technique for breaking emotional patterns in trading

By Brett Steenbarger October 2002 Abstract / Introduction: Traders love patterns. We trade chart patterns, oscillator patterns, historical patterns, cyclical patterns-you name the pattern, chances are there’s someone trading it. Much of trading boils down to pattern recognition and the ability to quickly identify and act upon profitable patterns as […]

Read More

Explaining market success

This article reproduced with permission from Brett Steenbarger Numerous books have been written on the topic of trading success. Nevertheless, it is unclear how expert traders obtain their expertise. Several explanatory models are implicit in market writings: •  The psychological model – What makes great traders, this model asserts, is […]

Read More

Do professional traders exhibit loss realisation aversion

By Peter R Locke, Steven C Mann November 2000 Abstract / Introduction: Recent evidence (e.g. Odean, 1998a) describes investor behavior that is at odds with traditional economic theory.  These alternative behaviors, such as those consistent with the disposition effect or overconfidence, form the basis for recent “behavioral” explanations for asset returns […]

Read More