Category:Psychology

Seguici su Facebook
From Traderencyclopedia
Jump to: navigation, search
Many naive investors see trading as streets paved with gold, with a few risks and many profits. Actually, a trader’s main enemy is his mind, not the market. Although hard to accept, it needs to be told: in trading, Santa Claus does not exist!
A degree in crowd Psychology
might provide greater understanding
of the behavior of financial markets
than one in economics.»
(Gordon Pepper)


Santa Claus does not exist. Gnomes and elves do not exist. In the stock market, you can easily earn money using leverage and just trading 30 minutes a day.

If debating over Santa Claus, gnomes and eves is futile, the last statement though needs attention.

Fairy tales? Fantasies? Illusions?

Of course, as any professional trader knows. However, it is not at all difficult to come across advertisements emphasizing amazing and easy performances one can achieve on the market.

It’s enough to open an account with a huge leverage, read one of their free e-books, and there we are projected into the fantastic and gilded world of trading.

Fairy tales? Fantasies? Illusions?

If you are not persuaded, it is only because that is your wish. And nobody can do anything against it. After all, cheater and cheated, are ultimately complicit partners.

Gullibility and lack of knowledge are perfect ingredients for a financial ruin.

Knowing the market participants’ instruments and their different expectations allow you to understand that; if on one hand "the market is never wrong", on the other hand, the error can be mutual.

Trading is 70% psychology and the study of the market participants’ expectations.

If speculation can do without the subtle psychological aspects that underlie the movements, professional trading cannot. Professional trading cannot do without them.

Notes:

Pages in category "Psychology"

This category contains only the following page.

P

Personal tools
Variants
Actions




Navigation BETA
Main Categories BETA
Other Categories