Psychological aspects of successful trading in financial markets.

Ninety percent of traders lose their money in the market, and it is not solely due to knowledge, skills, and expertise.
2 min

1. Perception and attention. Trader can minimize their chances of success in the market if they do not focus on correctly interpreting information. For example, if a trader believes that certain factors always dominate a particular market and fails to pay attention to new trends and changes, it can lead to losses in the market.
Distractions and biases can also have an impact, leading to inaccurate assessments of market situations and making incorrect decisions. By the way, these perception biases are successfully manipulated and exploited.

2. Overconfidence: All traders possess a specific type of self-confidence that differs from confidence in other professions. For example, a trader may disregard news and political events that can impact the market due to their overconfidence in their abilities. And if you think that this is so obvious, the catch is that traders often fall into the trap of taking unwarranted risks without realizing it, and it happens very quickly when things start going their way. From their perspective, yes.

3. Affective heuristic: Traders may make decisions based on their previous emotional experiences and stereotypes rather than objective facts. For example, a trader may decide to sell shares of a particular company based on their negative experience with that company, rather than objectively evaluating its financial performance.
This also includes unfounded intuition and stereotypes, which can lead to an increased level of risk-taking.

4. Loss of control. If you think that the loss of control is always obvious and apparent, it is worth noting that it can sometimes be subtle, as it is a unique state of attention and cognitive functioning.

5. Subconscious desires: Everyone desires money, often in large quantities. However, subconscious desires, which are unique, are not always created in a positive context. We may have desires, even to lose money, that stem from unconscious motivations or emotional patterns. The sense of subconscious desire to recoup losses or gain more profit can lead to excessive risk-taking and uncontrolled actions.