Category: Behavioural Finance * Brainstuff

Jun 25

The Man In The Green Bathrobe

By Mandi in Behavioural Finance * Brainstuff

Behavioural Finance A sneak peak into Behavioural Biases that if not made consciously aware of will unconsciously trick traders into making imprudent trading decisions that can lead to losses. Professor Richard Thaler is one of the leading figures in the Behavioral Finance academic world and has been credited with the term “Mental Accounting”. Here is …

Feb 11

Trading Psychology Webinar for TD365

By Mandi in Behavioural Finance * Brainstuff

This is a Trading Psychology Webinar I held for TradeDirect 365 www.tradedirect365.com.au in December 2013. Unfortunately the sound quality is a bit faint. We had the technology gremlins playing tricks on us.. Hope it is still useful for you. [vsw id=”MumhP1TBC6A” source=”youtube” width=”425″ height=”344″ autoplay=”no”]

Apr 30

Trading With The Brain In Mind

By Mandi in Behavioural Finance * Brainstuff

Steve Ward on “Self Awareness through Mindfulness” in Trading during the FXstreet International Traders Conference (ITS) in Barcelona: Obviously I had heard about mindfulness but never in the context of trading. When Steve introduced me to the concept and the benefits in trading pretty much at the beginning of our coaching journey, I wasn’t …

Dec 07

Are our trading decisions impacted by subliminal messages?

By Mandi in Behavioural Finance * Brainstuff

I have been a fan of Derren Brown for a number of years now. His skill of ‘playing’ with the human mind and the subconscious are just fascinating to me. This clip about subliminal advertising and how he is able to manipulate those guy’s thinking patterns makes me wonder in how far traders are at …

Oct 15

Regret Aversion Bias

By Mandi in Behavioural Finance * Brainstuff

“People exhibiting regret aversion avoid taking decisive actions because they fear that, in hindsight, whatever course they select will prove less than optimal. Basically, this bias seeks to forestall the pain of regret associated with poor decision-making. It is a cognitive phenomenon that often arises in traders, causing them to hold onto losing positions for …

Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.

Please note even though the website name is tradingpsychology, we are not psychologists but highly trained qualified professional coaches.
Trading the financial markets (especially on margin with leveraged products) carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any instrument you must carefully consider your objectives, level of experience, and your personal circumstances.

The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading the financial markets, and we recommend you seek advice from an independent financial advisor.

Any information is general of nature and does not take into account your financial situation, objectives, or your individual circumstances and needs.
Please ensure that you fully understand and acknowledge all risks involved before entering into any trades.