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Category: Psychology

System 1 vs System 2 Thinking for Traders

System 1 vs System 2 Thinking for Traders

Nobel laureate Danial Kahneman is one the worlds eminent experts when it comes to decision making. In his book “Thinking Fast and Slow” he describes how the brain is divided into two agents which he calls System 1 and System 2. System 1 and System 2 produce fast and slow thinking respectively. System 1 thinking refers to our intuitive thinking system, which is fast, automatic and effortless. We make most of our decisions in life through system 1 thinking. By…

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Decision Fatigue

Decision Fatigue

You are bombarded with information as a trader. Markets are constantly moving. You are always monitoring them for the best setups. You monitor your tweet deck, there’s a hell of a lot of good information from the good folk on twitter that you like to keep an eye on. Or perhaps you’re just waiting for the next Trump tirade. You’ve an inbox full of research reports, economic analysis reports and technical analysis reports. You’ve a squawk on in the background…

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