Two traders start their day. They both wake up at 7 am ready to face the markets. They check what the markets have done overnight and read the latest articles on Bloomberg. Both traders are organised, diligent and have a positive mental attitude. They have both worked hard to learn the skills needed: How to read […]
Last week I was like most traders around the world. As the markets fell, I was biting my nails, drinking gallons of coffee and waiting anxiously for the next leg down. Each morning I would wake up and check the markets on my phone before doing anything else. But as last week’s violent market downturn […]
In this article, I look at how a pair of research psychologists have revolutionised how we think. I discuss how their work helps explain why a few traders are very profitable, while the majority struggle to make money. At the end of the article, I have a few ideas for simple trading strategies. The Undoing […]
I recently thought about the similarities between becoming a successful trader and successfully losing weight. Both of them can be very challenging and need a combination of knowledge, discipline and persistence. One thing I found fascinating was a psychology experiment carried out by researchers at Stanford University. This experiment tested the willpower of students and has some […]
What do trading the financial markets have to do with the game Rock, Paper, Scissors? In this article I look at why researchers organised a competition at a university in China and how their analysis of the competition showed about people’s instinctive bias. This bias casts a light onto an important reason why traders succeed or […]
