Investors are humans, too – which means emotions can influence one’s trade decisions. Maintaining discipline is key in helping you to avoid making those emotionally driven mistakes.
When we embark on the road to trading, we’re usually determined to learn as much as we can about, for example, technical analysis, the practical things about how markets work, and ways that we can ‘predict’ what price is going to do. It is the same for most people – it was the same for me.
It takes us some time to truly understand that we cannot predict the future – no matter how much analysis we do. We tend to look for a strategy that gives us a logical and statistical edge. We might even build our own strategy and use historical data to back-test it. But whenever we trade that strategy in accordance with our set of rules, we still seem to keep losing.We then seek out other, better strategies. This is a dangerous trap. Because while the knowledge quest is a good thing and should be never-ending, it takes us a long time to realise that the problem isn’t with the strategy. Rather it’s that we’re sabotaging ourselves.
As humans, we have two primary drivers: fear and greed. Think about it: Every single emotion that we as humans feel can be traced back to one of these two primary emotions. We love, ultimately, because we want to feel fulfilled. (Sometimes we marry the wrong people because we are afraid of being alone.)
هذه القصة مأخوذة من طبعة 15 August 2019 من Finweek English.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة 15 August 2019 من Finweek English.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
