1 / 6

Learning How Your Optimism Can Make Or Break Your Trading Results

Finally, by putting all your energy into ensuring that youu2019re as well-prepared as possible, youu2019re teaching yourself to accept that losing trades are inevitable. As a result, youu2019ll feel less pressure to avoid taking trades with a strong chance of failure and will be more likely, to act on legitimate trade setups and sound judgment. Visit us: https://funded-traders.com/learning-optimism-can-make-break-trading-results/

FundedTrader
Download Presentation

Learning How Your Optimism Can Make Or Break Your Trading Results

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Learning How Your Optimism Can Make Or Break Your Trading Results Only by holding a healthy dose of self-assurance and a positive outlook can one expect to make it through life with all of its unknowns, worries, and misgivings and emerge victorious. FUNDED TRADER

  2. What kind of influence does having an optimistic outlook on investment choices? Investors’ mind has a natural tendency toward optimism which is hardwired into it. They are into “the impression of infallibility,” “unrealistic optimism” and “ego”. As a result of this bias, investors tend to overestimate the chances of avoiding failure and underestimate their probability of experiencing accomplishment. Whenever this occurs, investors are more likely to take riskier trades. An example of this is an investor who puts most of their savings and investments into a firm’s shares; because some folks, once acknowledged and develop a false sense of optimism about the future of the business.

  3. Another Hallmark Falsehood of Optimism bias is unliking toward Denial Those who suffer from this prejudice frequently falsely assume they are succeeding in the marketplace. Even though it’s not factual, this misconception is nevertheless widely held. Recent research has shown that those more optimistic are likely to be in denial and suffer lower returns than the market. Accordingly, individuals should only put some of their eggs in one basket. It would be better to stick to good investments, which provide more conservative returns and allow compounding to work its magic.

  4. What Can Be Done to Counteract the Optimism Bias? Unfortunately, irrational thinking may take the form of optimism bias. As a result, avoiding it entails nothing more than keeping an eye out for it. Because of the correlation between a positive outlook and success, it’s no surprise that optimists predominate among the prosperous; which rings true regarding trading.

  5. Ponder this: Of all the self-assured people you’ve encountered, how many have a permanently pessimistic view or disposition? I’d wager that the actual number is vanishingly tiny if not zero. If you’re in the midst of a significant drop, somewhat of making excuses for yourself, reclining in the dark, and chewing your nails, focus on the fact that you’ve been able to stick to your trading strategy thus far. Investors must rely on something other than a prediction they came up with. Instead, it has to be gleaned from the historical performance of a group of assets analogous in nature and time horizon. It’s well-established as more reliable when making judgments about external factors.

  6. CONTACT US • +44(0)2034768225 • info@funded-traders.com • www.funded-traders.com

More Related