The more you look at the research on human cognition, the less confident you have reason to be about so much of what you take for granted. Features of your mind that you may regard as utterly rational and intrinsically you, are demonstrated time and again to be huge cognitive blind spots that we're actually all afflicted with to some degree. Once you realise that your decision-making faculties, your ability to categorise incoming data, even the veracity of your own memories, can be compromised, it becomes clear just what a monumental project becoming a trader is.

Imagine not just having to contend with a masterful opponent in the form of the market itself, but also a kind of traitor within, a vast amorphous region of unexamined cognitive biases and blind spots that are just as responsible for you failing to achieve your potential. Suddenly your education as a trader begins to take a strange esoteric turn, and you begin to understand that excellence at an endeavour that is so complex, which features so many unseen competitors and an abundance of contradictory information, also requires an enormous amount of self-work. That's precisely what this trading psychology section is all about, bringing some of these blind spots to light and introducing you to them so that you may start addressing how they can affect your trading.

Did you know?

Telephones and telex used for trading quotes were replaced in 1973, as Reuters introduced computer monitors.

Word of the day
"Non-Farm Payroll (NFP)" - A key economic indicator of the U.S. economy that reports on changes in the number of employees. The report excludes farm workers and those employed by the government, non-profit organisations and private households.
Pro Tip

Leverage is a double-edged sword. Understand it before you use it.

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