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Trading psychology is the sum of many parts, i.e., a group of behaviours exhibited in the process of financial decision making.
Trading in itself is a complex endeavour, filled with challenges that evoke feelings of stress, anxiety, and fear. These emotions inevitably lead to decisions that could be considered irrational, biased, or simply poor, resulting in subpar trading outcomes.
Knowing how to manage the effect of these emotive factors requires looking inward and recognising not only what you’re feeling, but also the influence these feelings could have on a trade. It also means acknowledging that those gut emotions or intuition otherwise known as trading instincts maybe impacted by external influences. One being the concept of ‘tangibility of anticipation’.
Tangibility of anticipation is one of three core components of trading instincts, the other two being sensory-derived bias (using information that may be biased) and avoiding the vague (fear of the unknown).
Tangibility of anticipation typically comes about when the anticipation of an outcome becomes the focus, rather than the achievement of that which you anticipate. So strong does this feeling become, it takes on a life of its own, dimming the process of attaining the actual objective.
In other words, the idea of winning becomes more thrilling than the actual win itself. Tangibility of anticipation can however hinder profitable trading outcomes by stifling the act of ‘doing’.
As with most things in life, that which becomes habit can be unlearned in order for new habits to be formed. This is just relevant in the context of ‘tangibility of anticipation’.
Reducing the risk of becoming addicted to the ‘what if’ can be achieved by developing self-awareness. It means taking a step back and recognising that a certain emotion or habit has begun to override rational thinking. It’s acknowledging that subjective thought-processes are impacting objective data. So how does one unlearn that which has become so entrenched in decision making rationale?
T4Trade, with registered address of F20, 1st Floor, Eden Plaza, Eden Island, Seychelles, is a trade name of Tradeco Limited.
The Group includes Damadah Holding Limited with registered address at 365, Agiou Andreou, Efstathiou Court, 2nd Floor, Flat 201, 3035 Limassol, Cyprus.
Tradeco Limited is authorised and regulated by the Seychelles Financial Services Authority with licence number SD029.
Risk Warning:
Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.
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This website is not directed at EU residents and falls outside the European and MiFID II regulatory framework.
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Thank you for visiting T4Trade
This website is not directed at UK residents and falls outside the European and MiFID II regulatory framework, as well as the rules, guidance and protections set out in the UK Financial Conduct Authority Handbook.
Please click below if you wish to continue to T4Trade anyway.
