Trader's Thread 05 (Jan 20 - Dec 26)

[winston]

Nine types of behavior that plague investor

1. Loss aversion – expecting to find high returns with low risk

2. Narrow framing – making decisions without considering all implications

3. Mental accounting – taking undue risk in one area and avoiding rational risk in another

4. Diversification – seeking to reduce risk, but simply using different sources

5. Anchoring – relating to familiar experiences even when inappropriate

6. Media response – the tendency to react to news without reasonable examination

7. Regret – treating errors of commission more seriously than errors of omission

8. Herding – copying the behavior of others, even in the face of unfavorable outcomes

9. Optimism – the belief that good things happen to them, while bad things happen to other people

Source: Hypergrowth Investing

[winston]

Nine types of behavior that plague investors...

1. Loss aversion – expecting to find high returns with low risk

2. Narrow framing – making decisions without considering all implications

3. Mental accounting – taking undue risk in one area and avoiding rational risk in another

4. Diversification – seeking to reduce risk, but simply using different sources

5. Anchoring – relating to familiar experiences, even when inappropriate

6. Media response – the tendency to react to news without reasonable examination

7. Regret – feeling too negatively after making a mistake

9. Herding – copying the behavior of others, even in the face of unfavorable outcomes

9. Optimism – the belief that good things happen to them, while bad things happen to other people

Source: Daily Wealth

[behappyalways]

Pretty wild data from
@gfc4
on Jessie Livermore’s swings in net worth throughout his career (inflation adjusted to reflect 2021 dollars)
https://x.com/Braczyy/status/1949660822021546397

[behappyalways]

Walter Deemer
https://x.com/WalterDeemer/status/1961434244305060328

[winston]

5 Support and Resistance Principles Every Trader Needs to Know

By Kathy Lien

1. Favorable Risk-to-Reward Opportunities
2. The Longer Levels Hold, the More Explosive the Breakout
3. Less Time at a Level = Stronger Level
4. Big Candles as Support and Resistance
5. Profiting from False Breakouts

Source: investing.com

https://www.investing.com/analysis/5-su ... s_headline