august 22,2024

Trading Psychology

Businessdynamixco.com

"15 Shocking Secrets About Trading Psychology You Never Knew"

Trading 

Illusion of Control : 

i

Many traders believe they can control the market, but in reality, most of their actions only influence their perception of control.

Tooltip

Loss Aversion is Twice as Strong as Gain-Seeking :

ii

The psychological pain of losing is about twice as intense as the pleasure of gaining the same amount.

 Decision-Making : 

iiI

Traders  often give more weight to recent events, ignoring long-term trends, which      can lead to poor trading decisions.

Over Trading  :

IV

Frequent trades are often a sign of underlying anxiety or a need for constant validation, rather than a solid strategy.

Anchoring to Past Successes:

V

Traders often cling to past success strategies, even when market conditions have changed, leading to repeated mistakes

Overconfidence : 

VI

 Most traders believe they are better than average, leading to riskier decisions  that can backfire.

Choice in Trading:

VII

More options often lead to indecision and poorer choices, overwhelming traders with too much information.

Trading as a Gamble

VIII

Traders often treats trading as a gamble without any perfect stratergies

Stories

More

The Basics of Trading – Trading guide for Beginner in 2024

Arrow
White Scribbled Underline
Dotted Diamond
Curved Dotted Line
Curved Dotted Line
Curved Dotted Line