Directions Psychological Science

To become a first class trader, you need to clearly understand their own limitations. But most traders are newcomers do not know. For example, a behavioral economist Dr. Terrance Odean found that online investors tend to sell outside their expertise. They do not have an accurate picture of what they can and can not do. Such a distorted exaggeration of abilities is not characteristic only for the traders.

This is a widespread phenomenon. Study show that when you are trying to assess how well your activity trader beginner, your intuition is better not to trust. Dr. David Dunning (Dr. David Dunning) and colleagues (2003) in a recent article in "Current Directions Psychological Science '(Current Directions in Psychological Science) shows that most people are' blissfully unaware his incompetence.

" This aspiration is too high to assess their ability has been noted in several studies. When people offer to take the test on abilities such as logical reasoning or grammar mistakes, they tend to overvalue their work: they think that their result is well above average (60% and above), although in reality it does not exceed 25%. Such a revaluation is not limited to tests. People tend to overestimate their work in various fields. Hunters think they know more about firearms than is in fact a doctors think that they no longer know how to accurately diagnose patients than in reality. Tests have shown even that when people offer money for an accurate assessment of their work, they still can not do it. Dr. Dunning and his colleagues believe that poor performers are doubly punished. Not only did they perform poorly, but they still lack the psychological ability to feel what they are doing poorly. So what distinguishes them from the good performers? Poor workers begin with the belief that they – the 'good performers' and not in a hurry to develop a method of assessing their work. Good workers, by contrast, try to objectively measure accurately their work and avoid worrying about 'Good' or not. Indeed, studies show that they actually underestimate the work. When they see other people's results, they wonder how well they have coped in comparison with others. Fortunately, the bad workers are not doomed to remain at the bottom. In their experiments, Dr. Dunning has shown that when poor performers show how poorly they work, and give instructions on how to improve their skills, their results are improving and they are more accurately assess their work. These studies offer a way in which the trader is a novice can improve their achievements. First of all, you need to know that an intuitive assessment will be extremely overpriced, and take active steps to overcome this. Secondly, it is necessary to provide an objective measure of your trading results, such as diary trader, so that you know exactly how well you trade. Third, increase your level of knowledge. As how to grow the experience, the evaluation of their work will become more accurate. Remember that. Objective and accurate assessment of your abilities is vital to successful trading