Disposition Effect

  • Tilt and Risk Management

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    ppearlman

    I wish there were a flashing light to tell me when I’m on tilt. – @NereusProject A few things tend to happen when markets correct and intraday volatility increases as we’ve seen recently: 1. The mood of traders gets looser and more apt to change quickly and with wider extremes. 2. Traders becoming looser with their…

  • Learning to Let Your Winners Run

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    ppearlman

    Investors and traders often sell their winners too soon and leave money on the table. This is so common as people become excited once they have a winner and enjoy the feelings associated with realizing gains. On last night’s Market Shrinkology program I reviewed the psychological causes of this tendency and outlined 4 things…