Psychology in Trading

When things go wrong, you feel regret and look for excuses so that your decision does not turn out to be wrong. On the other hand, when you make a profit, you grow proud, especially if you are at…

Investment decisions can be heavily influenced, not only by emotions but also by the context in which they are made, such as your own past experiences or the advice of friends and other…

In the previous post, we saw how easily we are influenced by the opinions of others. In trading, the crowd is everywhere: forums, chat groups, social media, and the friend who “knows” exactly…

Stairs up, elevator down. Indeed, you can lose money very quickly (elevator), but recovering it takes much more time (stairs). This concept is one of the first things you learn about trading. If, for…

There is no situation in the world that causes more hasty behaviour in novices than speculation in the financial markets. It almost seems as if the markets will suddenly close in the next few weeks, or…

As you have seen, there is emotion involved in investing, and it can never be totally eliminated. However, it is also true that the more experience and practice you gain with the details of trading, the…