Here's an interesting 2-min video
post by TED that has implications to trading by proving that many
of the bad behaviors that traders have, which cause them to lose
money, are hard wired into us; such as taking small profits (sure
thing) and letting losers grow and not take a predefined losses
with stops; and not recognizing that losing is a normal part of
trading that can be controlled with discipline instead of
emotion/instinct which is the norm with new traders who lose money.
Programmed for Losses
Posted by matt on 26th of Aug 2010 at 04:26 pm
Here's an interesting 2-min video post by TED that has implications to trading by proving that many of the bad behaviors that traders have, which cause them to lose money, are hard wired into us; such as taking small profits (sure thing) and letting losers grow and not take a predefined losses with stops; and not recognizing that losing is a normal part of trading that can be controlled with discipline instead of emotion/instinct which is the norm with new traders who lose money.
Anyway it's worth a watch.
It's all Monkey Business
Posted by etcbari on 26th of Aug 2010 at 09:05 pm
It's all Monkey Business
Title: Moral: Don't hire a monkey
Posted by brophy on 26th of Aug 2010 at 06:00 pm
Don't hire a monkey as financial advisor?
Very True. No emotions =
Posted by harshblue on 26th of Aug 2010 at 05:10 pm
Very True. No emotions = Better decision maker.
Who says only new traders
Posted by RM686 on 26th of Aug 2010 at 05:10 pm
Who says only new traders lose money. LOL
Brilliant
Posted by mamaduck on 26th of Aug 2010 at 04:53 pm
Thanks Matt