Overconfidence

From fxstreet.com

Trading is a very difficult job, not only because of the technical requirements but also because of the mental toughness and discipline it requires. In this article I'm going to talk about the role of overconfidence and how it can damage newcomers and experienced traders alike. 1. What is Overconfidence? To illustrate the point at hand, here is an example. In a confidence-intervals task, subjects had to judge quantities such as the total egg production of the U.S. or the total number of physicians and surgeons in the Boston Yellow Pages. The subjects expected that they could get a 98% accuracy on their answers. The ... (full story)