Wall Street goes through cycles based on the primary human emotions of greed and fear. There is a wide spectrum and phases of emotional behavior inside these two main drivers of investor beh... Read more
To be a profitable trader you need three things: A trading system with an edge. Proper position sizing per trade. The right trading mindset. If you don’t have the right mindset for t... Read more
A risk management process for a trading system is not just math but also includes human psychology. The psychology of execution is just as important to profitability as the trading dynamics... Read more
Trading is about mastering three different areas: A trading system with an edge. Using the right position sizing and risk management parameters for the system. Having the right discipline... Read more
Mental accounting is also called psychological accounting as it tries to describe how people categorize and label financial income and outgo of money. This behavioral economic theory was fir... Read more
The fear and greed index was created by CNNMoney as an indicator to quantify the degree of emotions that investors are feeling about buying stocks in the current moment. This index tries t... Read more
An equity curve is a visual representation of the trend and variation in the value of an investment or trading account shown on a chart over a specified period of time. An equity curve that... Read more
This is a guest post by Tino @TradersReality. There have many associations that martial arts have with probably every endeavor in life. The simple reason is that both require discipline. Now... Read more
There are two different methods for reasoning, inductive and deductive. While deductive reasoning looks for certainties, inductive reasoning is used when a circumstance is seen as supplying... Read more
The Dunning–Kruger effect is a cognitive bias identified in the world of psychology. This effect is identified when people believe their intelligence and knowledge is adequate and correct wh... Read more
