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?

The GBP/USD pair is widely referred to as “cable”. The term dates back to the 19th century, during which the exchange rate between the U.S. dollar and the British Pound was transmitted across the Atlantic via a huge cable that ran across the ocean floor and connected the two countries.

Word of the day
"Rectangle" - A chart formation that indicates trend continuation.
Pro Tip

Pips are important because they determine your profits or losses.