In the course of trading, the following emotions will affect your decision:
- Hope: I certainly hope that after I have bought it, it will rise immediately.
- Fear: I afford again, this time I have to hide far away.
- Greedy: I'm making a profit, and I'm going to expand my position a few times.
- Despair: This trading system doesn't work, I've been making money.
The following are some of the cognitive biases that affect trading behavior:
- Loss aversion: There is a preference for avoiding losses-that is, not making money is far more important than making money.
- Sedimentation cost effect: pay more attention to the money that has been spent, rather than the money that may be spent in the future.
- Disposition effect: The early cashing of profits, but let the losses continue.
- Result preference: It is judged only by the outcome of a decision, regardless of the quality of the decision itself.
- Recent preferences: More emphasis on recent data or experience, ignoring early data or experience.
- Anchoring effect: Overly dependent (or anchored) information that is readily available.
- Tidal effect: blindly believing one thing, just because many others believe it.
- The rule of the decimal: to draw inconclusive conclusions from too little information.
The law of Turtle trading
