Trading psychology
The mistakes every human trader makes, why quants build rules to avoid them, and how to judge your own decisions.
- Loss aversionWhy losing $100 hurts more than winning $100 feels good.
- OverconfidenceMost people think they are above average. They cannot all be right.
- Anchoring and recencyTwo shortcuts your mind takes with numbers.
- Selling winners, keeping losersThe most documented mistake in investing.
- Herds and bubblesWhen everyone believes the same thing at once.
- Process over outcomeJudge decisions by how they were made, not how they turned out.
- Track quizFive questions. Get four right to finish the track.