The trading psychology of cutting winning trades short is addressed in this short video blog. Do you know it has mostly to do with your thinking? It's not that your thinking is flawed. The flaw is we believe wholeheartedly what the mind tells us. But it's not true. The video blog demonstrates that traders who believe what their mind tells them are at a … [Read more...]
Trading Mental Blind Spots
Trading Mental Blind Spots Mental blind spots in trading cause a lot of trading errors. Thinking errors--cognitive biases and heuristics--are part of the problem. Notably, emotions don't figure strongly in mental blind spots. Many traders focus on disruptive emotions like fear, greed and hope, but ignore the very common thinking patterns that disrupt trading. Recently, … [Read more...]
They Don’t All Work: UpThrusts and the Recency Effect
Nothing is 100%. That includes the Wyckoff Method. Even the best trade setups will fail. That's the nature of this game. It's all about probabilities. This morning before the US Open, we saw a good sell-off. The market then pulled back and set up an UpThrust at #1. Everything looked fine for a nice trade. But a nice trade didn't happen. Instead, a minor Spring propelled … [Read more...]
