How YOU react when market move against your trading positions ?
Eric Barker has a new article (link here) on how to win every argument. The article had a point which made me think whether the same situation happens in trading.
So it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as soon as the people realized that the information contradicted their world view, the parts of the brain that handle reason and logic went dormant, while the parts of the brain that handle hostile attacks – the fight-or-flight response – lit up. Essentially logic gets thrown out the window, and it just becomes a fight where you do anything to win.
A similar situation occurs in trading, when you have a certain expectation of how the market should behave. E.g. you might for
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So it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as soon as the people realized that the information contradicted their world view, the parts of the brain that handle reason and logic went dormant, while the parts of the brain that handle hostile attacks – the fight-or-flight response – lit up. Essentially logic gets thrown out the window, and it just becomes a fight where you do anything to win.
A similar situation occurs in trading, when you have a certain expectation of how the market should behave. E.g. you might for
posted by Bramesh at
4:52 PM
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