I have categorized the often-identified psychological obstacles of trading into the following categories:
2. Effects of the Ego – The Need to be Right
3. Impact of the "Law of Small Numbers"
4. Opinions of the Majority – "There's safety in numbers"
5. The Appeal of Sophistication
6. Excessive Need for Understanding
7. Excessive Pattern Recognition
8. Greed & Hope
9. Misplaced Optimism
10. Fascination with Predictions
11. Illusion of Control
I would like to explain all the point in my upcoming book.
