Before you start trading it’s important to be prepared for a long road ahead. Even if you’re born with a natural talent you will still face a number of obstacles that you will need to overcome to be successful. 1. Do You Have Enough Capital? Unfortunately the most passionate new traders are often the least […]
Psychology For Traders
I don’t know why but I was lying in bed last night thinking about confirmation bias in stocks. So I thought I’d write a post about it. See, if you don’t know what confirmation bias is, you might be making all sorts of little mistakes without even knowing it.
Most commentators tell you to cut your losses short and let your winners run. This is the ‘golden rule’ of trading. If you do this, only this, and nothing else, apparently, you are bound to make money. (So long as your risk settings are also right).
I just finished reading about a study that showed many people would rather inflict pain on themselves than spend 15 minutes alone with their thoughts. It’s obviously an interesting study for a number of reasons and I think it contains some insight for traders too. Do you prefer pain over boredom? Researchers from Virginia and […]