Understanding trading psychology definitions helpful if you want to reduce the impact of psychology on your trading. The mental and emotional aspects of trading can significantly influence decision-making and ultimately determine your success or failure. I have found...
In my stock market update last week we discussed the two likely scenarios for the US markets in the near term (Continued rally OR Another leg down). This week started strong, but with the US Political $&!% show continuing to rattle the markets the US markets fell...
Salience bias is a cognitive shortcut where the most noticeable or emotionally striking information disproportionately influences decision-making. Imagine watching the news about a plane crash. Even though air travel is statistically safe, the vivid imagery can make...
The Bull/Bear Ratio, also known as the Bull-Bear Spread, is a market sentiment trading indicator that helps traders and investment advisors gauge the overall attitude of investors toward the stock market. This indicator is published weekly by Investor Intelligence, a...
Dear Trader, If you’re reading this, chances are you’ve purchased a stock trading course before - or at least thought about it seriously. But something’s not quite clicking. Maybe you’ve followed courses that promised "quick profits" only to find yourself...
Learning how to start stock trading can be one of the most rewarding ways to build personal wealth. However, the journey from curious beginner to confident trader is often filled with potential missteps, conflicting advice, and overwhelming information. Without a...
The Elder's Force Index (EFI) is a widely used trading indicator developed by Alexander Elder to measure buying and selling pressure in the market. By combining price movement with volume, this technical analysis tool helps traders determine the strength of a trend...
Let’s get real for a minute. You’ve got your trading strategy, your backtest results look solid, your rules are locked in. On paper, everything checks out. But then, out of nowhere, you hesitate on a perfectly valid trade. You skip an entry. You downsize a position....
Normalcy bias is a cognitive trap that convinces people everything will remain the same, even when clear signs suggest otherwise. This bias occurs because individuals tend to underestimate the likelihood of a disaster. It’s why some people ignore evacuation warnings...
Have you ever played the lottery, knowing the odds were stacked against you, but you bought a ticket anyway because the jackpot was too tempting? That’s the neglect of cognitive bias at work: a fallacy where we overlook statistical likelihoods when making...