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  2. Blog & News
Don't be nice to your ego

Don't be nice to your ego

Details
Category: Blog
Last Updated: November 11, 2024
  • market psychology
  • ego

We have discussed this issue multiple times before. When you are trading, you have to let go of your ego. This also applies to the kind of news a trader reads or the kind of chat rooms and forums the trader is taking part in. Some websites always bring bullish news and opinions. Others are always bearish. Most often this is not high-quality journalism, but more like someone with a loud voice claiming all sorts of things.

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They, them, you, the market

They, them, you, the market

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Category: Blog
Last Updated: November 11, 2024
  • market psychology
  • ego

Oftentimes, traders feel that the market is full of opponents called 'they'. Traders have the feeling that 'they' (these opponents) are out there to get them. 'They' are pushing the market higher after which 'they' will let it drop. 'They' will hit your stop loss and then 'they' will steal your money. Usually 'they' are the banks, the big funds that can really move the markets. In other words: The Evil. And what 'they' are trying to do is always so obvious, it's almost a crime.

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What do you think is your neighbor thinking that you think that he is thinking

What do you think is your neighbor thinking that you think that he is thinking

Details
Category: Blog
Last Updated: November 11, 2024
  • market psychology
  • market
  • Nash equilibrium

.... that you are thinking that he is thinking? This is the funny paradox that is a big factor in the financial markets. In 'A mathematician plays the stock market' by John Allen Paulos, the author analyzes where this is going and what it means.

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Bad economic data, but the market is going up!?

Bad economic data, but the market is going up!?

Details
Category: Blog
Last Updated: November 11, 2024
  • market psychology
  • emotions
  • ego

Frustration among traders is very common when they go short on anticipation of bad economic data (or long on good economic data). This is due to the fact that in many cases the market does not always come down on bad economic data, or vice versa does not always rise on good economic data. Bad is good sometimes, and good is bad. Traders are frustrated because the market is not doing what they think it is 'supposed to do'.

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