Articles

Useful information for novice traders in the US stock market. Reviews, articles and videos about the leading American stock exchanges

Presumption: it's hard to break old habits

Presumption – one of the most common psychological problems of traders. All people are prone to arrogance, but for some, it may reflect deep psychological conflicts.. Sometimes, but, presumption – just a matter of how difficult it is to break old habits. It happens, trading strategies are executed by us “too automatic”, even if their rules are not quite correct. Sometimes it is necessary to learn different behaviors or “relearn” Trading. It is vital to hone your trading skills this way., so that you can make transactions freely and intuitively. Thinking is limited, and with practice, you can do many tasks at the same time and “to expand” thinking framework.

Accept Your Incompetence

To become a first-class trader, You need to be clear about your own limitations.. But most novice traders don't know this.. For example, behavioral economist Dr. Terrance Odean revealed, that internet investors seek to trade outside of their experience. They don't have an exact picture, what can they, and what can't they do. This distorted exaggeration of ability is not unique to traders.. This is a widespread phenomenon.. Research shows, what, when you try to rate, how good is your newbie trader activity, it's better not to trust your intuition.

“Flooding price” in trading

You have invested 25 % of its capital in a share, which your analysis predicted growth. Your expectations, but, failed. The price is steadily falling. Do you think: “I have done such a thorough and detailed analysis. I spent a lot of time researching the fundamentals of this company.. I can not belive it, that she falls”. At this moment, you hope, that the position will unfold, and refuse to close it. It's easier to keep an open position, than to admit a wrong decision and take a loss. This is called the flood price effect.: a person increases debt on a losing position just because, what wasted a lot of time, forces and / or money.

I'm not a pessimist – I'm a realist

“I'm sure, that Amazon will grow significantly next month”, Tom tells his buddy Fred during a coffee break. “Why do you think that??”, Fred asks skeptically. Tom answers: “classes start next month, and students and teachers will need to buy books; this should increase sales, which means, and share price. ” Fred objects: “Maybe, but it may not be so easy. This is just one of many possible factors., and the price may depend on many other reasons, which you probably missed”. Disappointed with poor support from a friend, Tom screams, “You are such a pessimist”.

How to get rid of the burden of emotions

All last year Bob traded. He's still a rookie., but has already made hundreds of transactions. Today he's in The Long Onel.. He has a plan.. It manages risk. This deal does not stand out from its other positions.. There is no reason to somehow differentiate this deal, but somehow she still stands out. He is not sure, what can trade today. He wonders, why does he continue to trade. He thinks: “Do I like it all? What is the purpose?? What I want to achieve in general?” In this deal, right now, Bob carries an excess emotional burden.. He went into a business as usual, but made it a symbol of the overall picture; gave her deep meaning. Bob examines, what exactly does this deal mean to him. Most traders advise taking a day off., when such thoughts appear.

Interview | Sakura Shade Trading

Dmitry, Good afternoon! All in all, the first question is standard: how did you manage?
-Yes, Constantine, I understood what you mean.I've always got into something since childhood. AND, certainly, I could not pass by trading. The first acquaintance took place, when i was years old 18-20, but thoroughly for studying the subject, I sat down about three years ago. AND, […]

Remedy for fear of failure

Our approach to trading is determined by the vision of the future and expectations. For example, if we are too scared, we refuse to take mother risks, and as a last resort we may even be afraid to enter a deal. Our expectations, knowingly or unknowingly, have a huge impact on trading results. Traders face many common fears, and each of them is based on beliefs and assumptions, which should be identified and refuted. For example, in his book “Trade in the Zone”, Mark Douglas highlights such fears, which became the cause of many trading mistakes: be wrong, lose money, exit the game, leave money on the table. Many of these fears reflect a fear of failure..

The history of the world's most mysterious and disruptive financial institution – US Federal Reserve

From time to time, the normal course of the planet's business activity is interrupted and prominent businessmen, bankers, stock traders, mutual fund managers, and along with them – Policy, ministers, drug dealers and an army of thousands of journalists, holding breath, listening to a lanky, puny old man named Alan Greenspan speaking (currently the head of the Fed is Ben Bernanke. approx. Victor), who, with the greatest profoundness, announces to the city and the world of raising or lowering the interest rate of federal funds (Fed Funds Rate - percentage, under which commercial banks have the right to lend money to each other for one night to maintain the federal deposit within the normal range. Established by the US Federal Reserve).

FED – U.S. Federal Reserve in 2021-2022 year

U.S. Federal Reserve (also known as the Fed ) is the central banking system of the United States. It was created in 1913 year as a result of the adoption of the Federal Reserve Act, largely as a response to a series of financial panics or massive bank flaws, especially severe panic in 1907 year. Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has undergone changes.. Such events, like the great depression, were among the main factors, leading to changes in the system. His duties today, according to official documents of the Federal Reserve System, are divided into four main areas:

FED – Federal Reserve System

Federal Reserve System (FED, The federal reserve) (English. Federal Reserve System) - Specially created in 1913 year by the Federal Reserve Act (English. Federal Reserve Act) system, which collectively serves as the central bank of the United States of America. The state plays a significant role in the management of the FRS, although the form of ownership of capital is private - joint-stock with a special status of shares.

Scroll to Top