Investing without losing, investing that keeps winning...

The secret lies in psychology.

The mental barriers that every investor falls into.

From the causes to the countermeasures,

I have explained them in terms of psychological effects.

"Common traits of losing investors" and

"Common traits of winning investors"

How many can you name?

Each item takes about three minutes to read, so

I hope you can utilize your commuting time, time before bed, etc.

to learn casually.

~ Table of Contents ~

[Introduction]

[1] Bandwagon Effect ⊲ Everything is a beauty contest, whether in FX or stocks

[2] Confirmation Bias ⊲ Only information that is convenient for oneself is visible

[3] In-group Bias
⊲ Buying currencies or stocks recommended by celebrities without thinking for oneself

[4] Sunk Cost ⊲ Continuing to trade even with insufficient grounds because of the analysis done

[5] Endowment Effect ⊲ As soon as you hold a position, it looks very good

[6] Cognitive Dissonance
⊲ Unable to cut losses at the originally planned point despite holding unrealized losses

[7] False Consensus Effect ⊲ Believing that one's own thoughts are correct and that other investors think the same

[8] Representativeness Bias
⊲ Once you think that way, you cannot accept another perspective

[9] Self-serving Bias
⊲ Feeling proud when winning and blaming the market when losing

[10] Present Bias
⊲ Preferring small, certain profits now over larger future gains

[11] Loss Aversion ⊲ The psychology of not wanting to incur losses

[12] Halo Effect ⊲ Only noticing prominent information

[13] Prospect Theory ⊲ Wanting to secure profits but avoid losses

[14] Peak-end Rule ⊲ Only remembering the moments of entry and profit-taking

[15] Barnum Effect
⊲ Interpreting any information as a buy signal

[16] Wishful Thinking ⊲ Delusional trading based on "I hope this happens"

[17] Commitment and Consistency ⊲ Consistency of rules and emotions

[18] Social Proof ⊲ Because everyone said on social media that it’s a buy

[19] Milgram Effect ⊲ Because that famous person said it’s a buy

[20] Moral Licensing Effect ⊲ Reasons for not being able to adhere to personal trading rules▀

[21] Caligula Effect ⊲ Reasons for not being able to adhere to personal trading rules▁

[22] Psychological Reactance ⊲ Reasons for not being able to adhere to personal trading rules▂

[23] Self-deception
⊲ Searching for reasons to move in the direction one thinks, even when going against it

[24] Information Bias ⊲ Is more information always better?

[25] Availability Heuristic ⊲ Relying on past reliable patterns

[26] Processing Fluency
⊲ Familiar chart shapes unconsciously attract attention

[27] Illusion of Control ⊲ The investor psychology that believes it will definitely hit

[28] Ego Depletion ⊲ Causes of overtrading▀

[29] Empathy Gap ⊲ Causes of overtrading▁

[30] Belief Bias ⊲ Preconceptions overlook other possibilities

[31] Normalcy Bias ⊲ Leverage that does not fit one’s means leads to ruin

[Conclusion]

3 minutes a day! 31 practical psychology tips for investing to learn in 31 days