Category Archives: Trading Psychology

10 Lessons Investors Can Learn from Wordle

I have a suspicion that over recent weeks and months you have become aware of a puzzle called Wordle. A simple, web-based word game that has become staggeringly successful since its October 2021 launch; so much so that the New York Times recently purchased it for a seven-figure sum. Both the structure of the game and…

Your Attention Didn’t Collapse. It Was Stolen

….He said “your brain can only produce one or two thoughts” in your conscious mind at once. That’s it. “We’re very, very single-minded.” We have “very limited cognitive capacity”. But we have fallen for an enormous delusion…. More here – The Guardian

What Makes A Psychologically Rich Life.

This interesting table popped up on Twitter.   It is an interesting thread that can be viewed at this link.

How to perform well under pressure

Whatever sphere you inhabit, whether you’re a pro or amateur athlete, businessperson, teacher, full-time parent or something else entirely, you’re bound to have felt the pressure of your own expectations and the expectations of others. Almost everyone must cope with daunting situations, in which they don’t feel they have the skills needed to succeed and…

Mark Twain, Framing and Scarcity

In the second chapter of Mark Twain’s The Adventures of Tom Sawyer the protagonist is in a spot of bother. He has been involved in another scrap and as punishment is tasked by Aunt Polly to spend his precious Saturday whitewashing ‘thirty yards of board-fence nine feet high’. It seemed that a bleak day lay ahead for…

Random Thoughts 17 – Reframing

Among Social Scientists, A Vigorous Debate Over Loss Aversion

WHILE MOST PEOPLE have likely never heard of loss aversion, the concept — arising in the social sciences some four decades ago — is among the most influential in the behavioral sciences. In a nutshell, it holds that when people make decisions, the impact of losing something carries greater weight than the impact of gaining something of…