Traders in the forex market. What are trade aberrations?
Trading aberration (aberration - deviation from the norm) - in the context of this issue, it means the deviations that appear in traders with experience in trading with respect to simple groups of people.
In particular, this is a series of scientific studies for the period 2000-2012, published in the journal Esquire. One of them showed that the phases of the moon have a special effect. The last week of the old moon, when it enters the new moon stage, gives the most negative echo on the trade. This is connected precisely with the periods when the indices on world markets behaved differently and caused a drawdown of several percent. In 2009, it was confirmed by observations of a group of analysts at Macquarie Securities. The media then covered this very topic.
The rest of the data collection was aimed at identifying the relationship of trade and its reflection on the identity of the trader, which revealed:
• Increased egoism among experienced traders, even psychopaths have less;
• Reduced friendliness;
• Inherent closeness.
According to the size of the bank account, on average, according to profit and personal qualities, the distribution of seats is as follows:
1. More than $ 265 thousand from disciplined, focused and concentrated;
2. $ 159 thousand. Those who believed that they were slowly dumping cheaper shares;
3. $ 153 thousand. Those who believed that they sell early growing;
4. No more than $ 24 thousand for those who relied on intuition and a sense of the market.
1. $ 2306 - disciplined;
2. $ 1591 - cautious and prone to procrastination, which are not inherent in a hurry;
3. $ 27 - enthusiasts with the will to win.
Exposure to the influence of emotions in trading by a successful trader is significantly lower than in a not very successful third position. Because he is experiencing joy earns 32.4% more from a normal day, and not successful - by 52%. In a bad mood, the ratio is approximately similar: the former earned 39.3% less, and the latter earned 46%. This shows that the state of a successful trader is more stable in any mood, which means productivity is much higher.
The experiment was conducted on healthy 19 people (group 1) and people with damaged parts of the brain of 15 people (group 2), responsible for emotions and decision-making. The essence of which was to test investment abilities. Each participant made the decision to invest a dollar or not. The presenter tossed a coin, in the case of an eagle, each investor was entitled to a gain of $ 2.5, and tails meant a loss of the invested dollar. This led to the following. With the accumulation of bad experience, only 40.5% of healthy people decided to invest. In the 2nd group, losses did not affect them much and after failure, investments were made in 85.2% of cases. There was the same reaction to success - they invested in 83% of cases. Healthy decided on this only in 61% of cases. As a result, the average earnings per person in the 1st group amounted to $ 22.6 per person, and in the 2nd - $ 25.05.