Investor Psychology

The Anatomy Of A Successful Trader: 12 Key Traits

For those serious about trading for a living, the following is a list of characteristics found in every highly successful trader. Realize that 1% of the people who play this game take 99% of the profits. That means 99% of people who call themselves “traders” are forking over all their…

Mind Games: 3 Behavioral Traits Investors Should Be Mindful Of

In “Bubbles and Elevators”, we discussed how human beings do seemingly ridiculous things to fulfill their instinctive need to mimic what others are doing, right or wrong, logical or illogical. The greatest investors, those that make money when markets are rising and avoid the pain when bear markets occur, are…

10 Trading Rules For New & Aspiring Traders

Whether an amateur or professional, trading is a difficult endeavor. The markets can be unforgiving… and, as much as it pains traders, are always right. It takes a strict trading process and discipline, amongst others, to succeed in this business. Below are 10 golden trading rules that can help new…

Insights Into Investing Through Financial Bubbles and Elevators

Financial Bubbles and Elevators Volumes have been written on behavioral finance and the seemingly “irrational” decisions investors tend to make to avoid straying from the herd. This article examines a current example coined “FOMO” (fear of missing out), in today’s texting parlance. Through a better understanding of the psychological dynamics of…

Trading Can Be A Bloodsport

I’ve spent the past week recharging my batteries on a family vacation in Rocky Mountain National Park (Colorado). I’ve snuck in a few trades and worked on the website, but other than that it’s been great to just spend time with the family and enjoy the beautiful scenery. I was…

Conviction Is A Good Thing… Just Tune Out The “Big Calls”

A large segment of Wall Street – analysts, news pundits, etc. – is paid to make calls for individual stocks and the broader stock market indices as a whole without personally committing capital towards these predictions. Do you see any conflict there? If your prediction is wrong, the majority of…

Trading Streaks: Seeing Through The Ups And Downs

If you are a trader, it is almost a certainty that you have had to deal with the ups and downs of trading streaks… and the effect they have on your psychology. Today, I am going to dig into some detail about this topic of trading streaks in data. I…

10 Trades A Trader Should Make To Become Successful

Throughout the year, we may place several trades. But before we can find trading success, we must make a few other trades first. Below are ten great trades a trader should make concerning psychology, risk management, and methodology. In short, we must turn bad behaviors into good behaviors to turn…