By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com The sunk cost fallacy in trading is the most frequently cited explanation for a position held too long, and it explains rather less of that behaviour than its popularity suggests. The definition is sound. The sunk cost fallacy is the tendency to continue…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Overtrading psychology is usually discussed as though overtrading were one condition with one cause, which is why the advice about it works for roughly a fifth of the people who follow it. Three traders take forty entries in a week where their plan called…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com The question what is trading psychology usually arrives from one specific moment, and it is rarely the loss itself. It is the moment afterwards, when you can explain exactly what you just did. You know it was revenge. You know the size was…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Why intelligent investors lose money is a question best answered from paperwork rather than from theory. Why intelligent investors lose money is answerable this way because analytical investors leave a trail. Notes, spreadsheets, screenshots, a thesis document, a post-mortem. That trail is unusually…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Why traders chase the market is a question that dissolves at the wrong timescale. Why traders chase the market looks, examined over a month, like a discipline problem: a trader who knows better and keeps doing it anyway. Examined over eleven minutes, it…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com A trading journal for emotional traders fails at a different point from a journal kept for reviewing setups, and choosing the wrong method is the commonest reason the habit does not last a month. Setup review needs detail: screenshots, annotations, market context. Behavioural…
Loss aversion trading is one of the most expensive psychological patterns a trader can carry. Here’s what it actually is, how it shows up in your decisions, and how to work with it.
By Sofia Harchich | Trading Psychologist & Behavioural Finance writer | thewealthmirror.com Fear and greed in trading are described everywhere as two opposing forces, and the description is doing real damage to the people who act on it. The model is intuitive. One emotion makes you take too much risk, the other makes you take…
