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Category Archives: Trading Psychology

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Stock Analysts’ Biases Are Showing, a Study Finds

Brokers/Fund Managers, Trading PsychologyBy Chris TateApril 12, 20173 Comments

Turns out birds of a feather flock together on Wall Street, too: Male stock analysts tend to write more favorably about public companies headed by men than about companies led by women. White analysts favor firms run by white chief executives. And Republicans and Americans in general prefer companies helmed by people like them. It…

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Why We Think We’re Better Investors Than We Are

Trading PsychologyBy Chris TateApril 9, 2017

From their earliest days, the loosely confederated research efforts that came to be known as behavioral economics spawned a large quantity of studies centered on securities investment. This was not because the field’s pioneers were especially interested in stocks and bonds, nor was the early research commonly underwritten by financial services firms. Rather, the hive…

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Living a Lie

Get Your Shit Together, Trading PsychologyBy Chris TateApril 6, 20172 Comments

People mislead themselves all day long. We tell ourselves we’re smarter and better looking than our friends, that our political party can do no wrong, that we’re too busy to help a colleague. In 1976, in the foreword to Richard Dawkins’s The Selfish Gene, the biologist Robert Trivers floated a novel explanation for such self-serving…

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Life Lessons by Bob Lefsetz

Get Your Shit Together, Trading PsychologyBy Chris TateApril 3, 20174 Comments

1. We all want to be listened to. Everybody’s got a story, everybody wants to tell it, but too few people have the patience to extract it from them. If you listen to someone’s story, they’ll be your best friend forever. You’ll bond. Everybody’s got something to say, something you find of interest, everybody got…

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Surgeons Should Not Look Like Surgeons

Trading PsychologyBy Chris TateMarch 28, 20171 Comment

Say you had the choice between two surgeons of similar rank in the same department in some hospital. The first is highly refined in appearance; he wears silver-rimmed glasses, has a thin built, delicate hands, a measured speech, and elegant gestures. His hair is silver and well combed. He is the person you would put…

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Why Are Martial Arts Instructors Fat?

Get Your Shit Together, Health and Fitness, Trading PsychologyBy Chris TateMarch 27, 20177 Comments

This was the question I was considering whilst sitting in my gyms cafe after my workout watching the various comings and goings. I tend to live a life of routine and after lifting on Sunday I head downstairs to cafe and have a cup of tea, toast, vegemite and a fresh orange juice. During this…

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The secret to happiness? Stop trying to be happy.

Aspiration, Get Your Shit Together, Trading PsychologyBy Chris TateMarch 23, 2017

A few minutes after Neil Pasricha learned his wife Leslie was expecting their first child, he got an idea for a book. They were sitting on a plane returning to Canada from a trip to Asia when a flight attendant handed them a plastic-wrapped muffin with a scrap of paper that read, “Congratulations!” Leslie had…

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Playing Versus Doing

Get Your Shit Together, Trading PsychologyBy Chris TateMarch 22, 2017

A mate of mine sent me the clip below. I am an unabashed fan of combat sports. I accept that they are violent in tone and to the outsider appear brutal with potentially devastating long term consequences for the participants. Anyone who has ever been hit in the head can attest to how awful it…

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Does News Move Markets….Sort Of…Maybe…Well No Actually

Economy, International Markets, Trading PsychologyBy Chris TateMarch 20, 2017

I was chatting the other day with someone who was having trouble with their trading system. Their approach was based on trading news events. Such a plan is predicated on the notion that news events move markets in certain ways and whilst this movement might not be wholly predictable it will at least generate some form…

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