|Behavioural finance theory |
Behavioural finance seeks to combine behavioural and cognitive psychological theories with conventional economics and finance to understand what drives investors to make irrational decisions.
|Why don't traders follow their trading plan? |
Following a trading plan without bending any rules is easier said than done. Here are a few reasons why most traders have trouble sticking to their trading plan.
|What is an emotion management system for traders? |
Your emotion management system is the subsystem of the trading plan that controls how you follow your trading strategy and risk management system.
|Why 2 traders can see different things when looking at the same chart|
Two traders can perceive the same chart differently and obtain different outcomes. The main reason: a lack of discipline. Some take too many risks, which greatly influences their perception of what a market does and may do next.
|Trader personality types | Who succeeds the most in trading?|
Trader personality types according to the Myers-Briggs test (MBTI).
|The true key to trader psychology: mindfulness|
Mindfulness is a mental skill that is of specific value to traders who wish to improve their trading psychology.
|Successful traders vs. those that lose |
Having a good strategy is not enough to make money in the forex market. When two traders use exactly the same trading strategy, they will usually end up with different or opposite results. This difference is due to the psychology of traders, as each trader tends to think differently.
|The forex trader's attitude |
The forex trader's attitude is an important element that must not be neglected. In order for a trader to elaborate a trading style that matches his mindset, he or she must identify his or her key personality traits.
|How to cope with losing trades |
In forex trading, creativity and the desire to take risks increase exponentially during winning streaks. However, this is generally not the case when your hard work and the time you've invested lead to losses instead of profits. Stress and the taking of unnecessary risks are frequent side effects after a series of losing forex trades.
|Even the best trading strategy won't save you |
Trading strategies, systems and methods always look great on paper, but when it comes to investing in the real world, market chaos and unpredictability often render even the best trading strategies unsuitable for the task.
|Why do traders make stupid mistakes? |
Why do smart traders make stupid mistakes, such as holding on to losing positions and reduciing profits by cutting trades too early? The emotional impact of the risk of losing money often wipes out trading plans, which disappear in a fog of fear and doubt.
|How to remain objective when trading |
One of the biggest challenges you'll face in your quest to becoming a profitable forex trader is maintaining objectivity while trading. While there are many factors which contribute to your loss of objectivity in a given situation, there is a clear and defined path you can follow to regain it.
|The psychological differences between demo and real trading |
Most beginners who switch from a demo account to a real account generally think that their results in demo mode can easily be replicated with a real account. Due to this, some traders give up when they realise that this is not always the case. Here are some reasons...
|The psychology and behaviour of inexperienced traders |
This diagram represents all of the psychological reactions that a trader or investor can feel when observing the evolution of prices. As embarrassing as it is to admit, we've all been there!