14 Stages of Investor Emotions

Trading Psychology, The 14 Stages of Investor Emotions Efficient markets are based on the assumption that rational people enter transactions with the intent to maximize gains and minimize losses. While this theory is sound, most investors are not the purely rational robots that efficient markets rely upon. Instead, emotions – there are 14 stages of investor emotions – often cloud our decision-making and prevent us from acting in a rational manner. Knowing we can never conquer our inherent emotional biases, we should seek to understand the range of emotions we…

Trade Forex Like a Sniper

Trade Forex Like a Sniper … Not Like a Machine Gunner A sniper in the military has an edge over his or her enemy; their edge is unwavering patience, mastery of their weapon, and the ability to remain consciously in control of their mind and body for long periods of time in high-stress situations. We can apply these same concepts to trade Forex like a sniper. Forex trading is very similar…you need a trading edge (weapon), you have to master this edge, you need to develop and maintain rigid self-discipline…

Professional Poker Players and Trading

What Professional Poker Players Can Teach You about Trading There are many similarities between the poker and trading worlds, and as traders, we can learn a lot from some of the top professional poker players. As Brandon Adams, a professor of behavioural finance at Harvard University’s Department of Economics said, “Some of the best candidates for Wall Street trading jobs are the professional card players at FullTiltPoker and similar web sites.” As any good poker player knows, if you manage your risk properly and execute your edge with consistency, you…