Trading Bias – The Most Common Trading Biases (How To Deal With Them)

Trading bias, you better have an understanding of the most common ones. When your money is at risk, you easily get fooled by your behavioral biases. Trading is about decision-making, and you better understand your strengths, weaknesses, and what puts your emotions on fire. This article explains the most common trading biases, why it’s essential…

Trading Psychology Guide

Because of drawdowns and trading biases you might not succeed even with the best trading strategies on the planet. Empirical evidence suggests that the main obstacle for most traders and investors is our in-grained biases (cognitive errors). If you want to read more about this subject, we recommend Rolf Dobelli’s The Art Of Thinking Clearly….

Is Focusing On Psychology Overrated In Trading? (Do This Instead)

Is focusing on psychology overrated in trading? The biggest obstacle for many struggling traders is the ability to pull the trigger, but more important is having a statistical trading edge and the correct position sizing. A mental trading edge can never replace a statistical trading edge. The most important thing in trading is to have…

Personality Test For Traders: Can You Become A Trader Or A Quant?

This article presents a personality test for traders. Brett Steenbarger is a famous trading psychologist who has written the bestseller The Psychology Of Trading. In the book, Steenbarger referred to personality traits that tend to distinguish good from bad traders. Can you become a quant or trader? Below is a personality test for traders to…

What Is The Best Personality Type For Trading? (Who Succeeds As Traders – Introverts Or Extroverts)

Traders might have different personality traits. What is the best personality type for trading? Most traders focus on finding a trading edge in the market by developing good and robust trading strategies. But many neglect one other very important factor for good returns: understanding your personality type. We believe introverts are more likely to succeed…

Fear In Trading – Is It Good Or Bad For A Trader? (How To Overcome Trading Fears)

Fear In Trading. How to overcome trading fear? The markets are a battle and you need to have detachment to money to succeed. The balance between fear and greed is a thin one. We believe fear in trading in moderate doses is very healthy. How do you overcome excessive fear in trading? Trade smaller than…

Why Intelligence And Overconfidence In Trading Is Bad

Overconfidence in trading is the downfall of many successful traders. Too much confidence makes you do irrational decisions and take too much risk. Not only are you more likely to overtrade, but you are more likely to unconsciously increase your risk-taking. Risk-taking involves the thin line between success, fiasco, and luck/unluck. Is there a correlation…

How Much Pain Can You Take? Risk, Hindsight, Consistency And Paper Trading

The risk is real, and trading is not easy. The above quote is from page 110 in Curtis Faith’s The Way of The Turtle. A great book! This sentence captures the essence of trading: a very difficult endeavor that ultimately leaves your inner strength exposed. It all looks so easy when looking at fictive equity…

Be Aware Your Ego, Be Humble And Open Minded In Trading (Case-Study: Okumus Capital)

Be Aware Your Ego, Be Humble And Open Minded In Trading (Case-Study: Okumus Capital)

Once in a while, I grab one of my about 100 trading/investing books. This is mainly to get inspiration and perhaps one or two ideas to test. The best books for inspiration are the Market Wizards by Jack Schwager. Over the weekend I read the chapter about Ahmet Okumus from The Stock Market Wizards. He…

Knowing Yourself As A Trader – How To Gain A Trading Edge By Knowing Yourself (Introverts and Extroverts)

Knowing Yourself As A Trader – How To Gain A Trading Edge By Knowing Yourself (Introverts and Extroverts)

How to gain a trading edge by knowing yourself is crucial for success in trading. In previous articles, I have written about how to find trading edges in the markets, but in this article, I look at how you can gain a trading edge by knowing yourself. As a trader, you can gain a trading…