Would rats be good at trading?
Saw this article recently and wondered if this experiment would translate into the trading elements of the markets?
https://news.bbc.co.uk/1/hi/sci/tech/8105963.stm
But seriously, psychology has a big part to pay the way you approach any market but more specifically how you deal with losses, which is effectively what the rats are doing in this experiment. Losses create a pang of negative emotion and dealing with it is a often a critical key to success. Losses are normal, to be expected and part of your trading mix so not getting freaked out by them is a key factor in the way you approach a market. One of the classic failure points people experiance is a desire to avoid a loss at any cost, which often leads to chasing them. That works to a point but when eventually it fails, along with your trading bank.
It’s a cautionary tale, succesfull traders rely on good money management to earn profit; as they know that without that no amount of skill will earn them money. If you see any ‘traders’ who have lost their bank regulary then it should set off alarm bells for you. They could be unfortunate but its quite possible they are just gamblers at heart and may never escape the clutches of a bad mindset.
Category: Using Bet Angel
