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

[behappyalways]

Don't force your trades.

Let them come to you.

That means plan, let the opportunity come to you, and if it doesn't move on to the next idea.
https://x.com/Mayhem4Markets/status/1977811034544226799

[winston]

When ‘buying the dip’ pays off – and when it doesn’t

by Renald Yeo

Buying the dip can be tempting, but it would be wise to do so with both eyes open to the potential risks and rewards.

After all, it’s a thin line between buying the dip and catching a falling knife.

Source: Business Times

https://www.businesstimes.com.sg/compan ... -it-doesnt

[winston]

You Haven’t Made Money Until You Sell

by Jeff Clark

There will come a time, though – probably sooner rather than later – when valuations do matter again.

Before that happens, folks will do well to recognize, “You haven’t really made any money until you sell.”

Source: Jeff Clark Trader

https://dailytradealert.com/2025/11/10/ ... -you-sell/

[behappyalways]

What overtrading is really like
https://x.com/Mayhem4Markets/status/1989383623083266184