By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer | thewealthmirror.com Somatic markers trading advice divides neatly into two camps, and both have misread the same body of work. One camp says trust your gut, on the grounds that the body knows before the mind does. The other says never trust your gut, on…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Money psychology self-awareness usually arrives as an invitation to reflect, which is why it produces so little. Reflection is not the problem. The problem is that a belief about money and a decision about size are separated by four distinct steps, and reflection…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Trading addiction psychology sits in an awkward place, and the awkwardness is worth naming before anything else. The topic attracts two kinds of writing. One treats every enthusiastic trader as an addict, which is both alarming and useless. The other dismisses the category…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Financial anxiety investing is usually approached in the wrong order: resolve the anxiety, then invest well. That sequence has an obvious appeal and a practical problem. The feeling is not reliably removable on a schedule, the market operates regardless, and a trader waiting…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Emotional stages of trading appear in almost every course on the subject, usually as a numbered sequence with a diagram, and almost never with a source. Five stages, seven stages, a curve running from optimism through euphoria to despondency and back. The models…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Childhood money beliefs are invoked more confidently in trading psychology than the evidence supports, and the overreach is doing real harm to a genuinely useful idea. The strong version runs like this: what you saw about money before the age of about eight…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Behavioural finance for traders is usually delivered as a glossary, and a glossary is close to useless at four in the afternoon with a position open. Twenty biases, each with a definition and a short example. The reader recognises most of them, finishes…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com The best behavioural finance courses online get chosen from a syllabus, usually in the week after a session that went badly, and the syllabus is the least informative thing about them. You have the module list open. Module four is the one that decided…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Market crash psychology has produced one piece of advice, repeated in every downturn: stay calm, do not sell, this has happened before. The advice is not wrong about history. Broad markets have recovered from every decline so far, the people who sold at the…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Emotional trading is the most-used phrase in this field and one of the least useful, because it names a symptom that four different mechanisms produce. A trader says they trade emotionally and means, variously: that they size up after wins, that they cannot close…
