How To Be A Better Trader

How To Be A Better Trader Collection

Becoming a better trader (or investor) involves much more than expanding your knowledge of markets.

While the vast majority of market participants may believe that it is, they are incorrect.

Read Article

How Does The 80/20 Rule Apply To Investing? 1

Few things in life are certain, which makes it important to think in probabilities

Most people understand on some basic intellectual level that few outcomes in financial markets (and life) are certain – that is, luck is a factor.

In turn, the existence of luck means that market outcomes are rarely binary. How does this affect our ways of thinking about markets? More importantly, what does the 80/20 Rule have to do with it?

In order to answer these questions, we have to begin thinking in maybes.

Read Article

You Need To Know This Key Difference Between Bulls & Bears

Markets are not very smart they are not driven by rational thought but by emotion and herd behavior
Cartoon by KAL (https://www.kaltoons.com/)

Understanding that the human reaction to data and headlines, that is emotion, is more important a driver of market prices than economic conditions, gives traders an extremely valuable perspective.

Read Article

A Simple Way To Identify Fear & FOMO In The Markets

fear and fomo drive market price action

Blood on the streets! Panic in the air!

After watching markets print nothing but losses for weeks, bears seem to have exhausted themselves, with enough buyers coming in for the first up day in a long time.

You find yourself wondering if you should dip your toes in and put on a long…the best time to buy is when everyone is fearful after all, no?

Read Article
the pensive nugget logo transparent background

Get a different perspective on all things trading & investing every week!

the pensive nugget blue background logo

Get a different perspective on all things trading & investing every week!