Sunday, September 6, 2020

4 Ways Your Mind Is Tricking You Into Being a Losing Trader

 Here is the article. 

Availability Bias

For a strategy, that means trading it for a couple of months or taking at least 100 trades. At least with 100 trades, you have some idea of how it actually performs.

Loss Aversion

All these reasons stem from not taking a loss when you should. Don't fear losses—even with lots of them, you can still be profitable. Instead, plan your exits before trading and stick to your plan.

Lottery Syndrome

Trading with the hope of hitting it big on a few trades is a fool's errand. Practice trading common market tendencies. It's in those moves that money resides, not in the elusive unicorn trade.

Knowing Vs. Doing

Instead of following these core concepts, they go on another information binge. But more information is useless if you don't apply it. Eventually, you need to stop searching and start applying what you know.

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