Mandi
Author's posts
Jun 16
The YOU Factor – Behavioural Biases
So many times we hold a position for the wrong reasons; you enter a position for a particular hopefully valid reason and then the trade doesn’t bring the expected results. But rather than getting out of the position and moving on we hold on to them far too long. Our excellent trading strategy is replaced …
Jun 16
Why We Take Our Profits Too Quickly
Another behavioral bias that can be a challenge to traders is what we call ‘framing’ in NLP. Framing describes the natural tendency of humans to subconsciously feeling drawn to discounts. Let me give you an example: Last year I purchased a brand new high performance computer for my trading. The local computer shop offered the …
Jun 14
One Explanation Why Traders Don’t Take Their Profits
Evolution has equipped us with many automatic survival mechanisms called instincts. For example, we apply mental shortcuts as a subconscious survival mechanism to help the brain expedite it’s decision-making and information processing. The brain performs this task by selecting an initial reference point and then basing it’s decisions around that point. One example for such a …
Jun 04
Charts Never Lie
This was my newsletter from May 18, 2012: Hello Traders, Once again it’s been working like clockwork and I hope you all were well prepared with David Hunt’s mass pressure chart in my last newsletter and also Larry Pesavento’s analysis (https://www.tradingpsychology.com.au/category/tradingtips/). Below I will explain how I analysed the market and knew it was time to short like a worldchampion. …
May 29
How The Stock Market Works…
I found this story years ago somewhere on the net and was amused by it. Unfortunately I don’t remember the source so I hope I am forgiven for sharing this story without quoting the source… Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys …
