Continue reading...Financial markets attract all sorts of participants, from part-time hobbyists looking for extra cash to multinational institutions moving billions of dollars across thousands of instruments. The trading game stretches across both ends of the spectrum, with part-timers and at-home gamers competing for profits with traditional funds and lightning-fast computer algorithms.
Data suggest the majority of traders playing at the shallow end of the market pool will eventually fail at the endeavor and pick up stakes, letting someone else manage their money, or simply giving up and looking for another way to build wealth. Ironically, many of these folks never had a chance to succeed because they came into the game with a casino mentality that marked a direct path to failure.
What exactly is a casino mentality and how does it undermine the trader’s quest for profitability? Is this flawed approach limited to novices or do experienced traders also get caught up in the behavior? What’s the most...
Last edited by a moderator: