By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Averaging down a losing trade rarely feels like a mistake while it is happening. It feels like conviction: the analysis was sound, the price is now better, and adding is what a confident trader would do. The difficulty is that the same feeling is present…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Prop firm challenge psychology is usually discussed as a matter of nerve: stay calm, follow the rules, do not overtrade. The advice is sound as far as it goes, but it skips the part that makes a challenge different from ordinary trading. A challenge adds…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Moving the stop to breakeven too early is the one rule-break that looks like discipline. It removes risk, it is recommended in countless trading guides, and on the day it costs a trade nobody can point to a mistake. The position was simply stopped out…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Scarcity mindset in trading is unusually hard to see from the inside, because every behaviour it produces looks like good practice. Smaller size than the plan specified. A valid setup passed over. Profit taken at a third of target. Two weeks out of the market…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Why traders move their stop loss is a question with an unusually well-documented answer, and the documentation almost never reaches the trader, who is generally told it is a discipline problem. The reasoning that arrives at the moment of moving it is worth attending to,…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com The loss aversion ego trading account problem is usually described as two forces acting on one balance. It is more accurate, and more useful, to treat it as a single compound with a specific signature. The loss aversion ego trading account compound has…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Exiting trades too early receives a fraction of the attention given to holding losers, and the imbalance is not justified by the arithmetic. A loser held past invalidation costs a defined amount — the distance from the stop to wherever it was finally closed….
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…
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…
