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?

Currency trading and exchange are no new practices. In fact, money-changing people can be traced back to the Biblical times. Using city-stalls, they would help others change money and take a commission or charge a fee for their services.

Word of the day
"First In First Out (FIFO)" - The process of closing orders in the order they were opened.
Pro Tip

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