IG Morning Markets

Loss aversion bias is a preference for avoiding losses over acquiring the equivalent gains. It implies that the fear of a loss is greater than the pleasure of a gain. A key step in preventing loss aversion bias is acknowledging that it exists. When you start to create a trading plan, it is important to consider how much you are willing to lose as well as how much you want to gain.  See omnystudio....

Confirmation bias is the tendency for traders to search for, and put greater weight behind, information that confirms their pre-existing beliefs or predictions. This can be prevented by carrying out your own analysis – whether this is technical or fundamental – and trusting that it is correct, even if it clashes with earlier predictions or preconceptions. See omnystudio.com/listener for privacy in...

Hindsight bias in trading is the tendency for individuals to express that they 'knew it all along', once they know the answer to a question or the outcome of an event that was previously uncertain. The consequence of hindsight bias is that it often leads to a false sense of confidence. One way to minimise the impact of hindsight bias is by keeping a trading diary. See omnystudio.com/listener for p...

Anchoring bias is the tendency for traders to allow an initial piece of information to have a disproportionate influence on future decisions, regardless of its relevance. For example, research showed that individual's estimates of stock returns were significantly influenced by the starting value they were given – the 'anchor'. The best way to prevent anchoring bias in trading is by performing comp...

Biases can impact the way traders make and implement decisions. Availability bias - is one of them. It is the tendency to open or close positions based on information that is easily available, rather than sources that are more difficult to find. The most common way to prevent availability bias is to conduct extensive research and analysis See omnystudio.com/listener for privacy information.

Competition is the pressure to make more money or place more trades than others. While trading is considered a competitive practice, traders should have the patience and discipline to follow their own trading rules and plan. You can consider creating a routine that is based on your trading plan and risk management strategy. One popular tool is a trading diary, which helps you keep record of your t...

The news can put pressure on traders to make certain decisions and interpret information in a particular way. News is a crucial part of information gathering, but it's important for traders to interpret the news objectively. One way to manage this is looking into technical and fundamental analysis.   See omnystudio.com/listener for privacy information.

The social pressure to perform in a certain way can cause errors and lead to traders taking on greater amounts of risk.  Here’s where rumours can be dangerous. Rumours in trading are any type of unverified claim that can influence traders' decisions. This includes making mistakes by influencing them to enter and exit positions based on fear and greed rather than fact. See omnystudio.com/listener f...

Social pressures are external factors that can have a direct influence on a trader's psychology, encouraging them to change their attitudes, values and behaviours. Herding in trading is the tendency for traders to follow others without doing their own research and analysis.  We discuss how traders can manage this. See omnystudio.com/listener for privacy information.

What is rationality in trading? It is the ability to make choices that will result in the best possible outcome given the information available. We look at ways to improve rational decision-making. See omnystudio.com/listener for privacy information.

Confidence in trading is trust in one's own abilities and knowledge. Every trader requires a certain level of confidence so that they can identify and act on opportunities, as well as bounce back after a losing streak. However, there is a fine line between being confidence and over-confident. See omnystudio.com/listener for privacy information.

Decisiveness in trading is the ability to identify opportunities and act efficiently – this includes making decisions about when to enter and exit trades, assimilating new information into a plan and learning from mistakes. We chat about how to become more decisive traders. See omnystudio.com/listener for privacy information.

It can pay off to be patient, but how many of us can walk the talk? We discuss how to become a more patient trader, and wait for the better moments in the markets. See omnystudio.com/listener for privacy information.

Do you have what it takes to stick to the plan? We explore what discipline means in trading and how you can improve it to be a better trader. See omnystudio.com/listener for privacy information.

When we get bored - the risk rises of us trying new things to seek new experiences or thrills, which can deviate from our original goals and plan. We look at how we can manage this and improve your trading mindset. See omnystudio.com/listener for privacy information.

Many of us get frustrated sometimes - and when it comes to trading, there can be many potential triggers, including when things don't go according to your plan. We look at how we can manage this and improve your trading mindset. See omnystudio.com/listener for privacy information.

Many of us are familiar with the feeling of hope - which in itself is not a bad thing. However, when it comes to investing or trading, It can be dangerous. We look at how we can manage this and improve your trading mindset. See omnystudio.com/listener for privacy information.

Greed can often drive us to take excessive risks in the markets. We look at how we can manage this and improve your trading mindset. See omnystudio.com/listener for privacy information.

Fear is one of the key emotions driving our actions, sometimes holding us back from taking action. We unpack the psychology around this, the best way to manage it and improve your trading mindset. See omnystudio.com/listener for privacy information.

How do you improve your trading mindset? First is to understand the ways that your emotional state can have a significant influence over the way you react to certain circumstances and triggers. In the following episodes, we explore the psychology of fear, greed, hope, frustration and boredom, and the impact they can have on a trader's performance.   See omnystudio.com/listener for privacy informat...