Behavioural Aspects of Trading
Overview
The trading decision is a decision, like any decision. An agent faces a set of choices with possible uncertainty
surrounding each alternative, and must make a choice based on their expectations and preferences.
Decision making theory
outlines the process of making decisions, including optimizing choices, as well as the pitfalls that can occur
when making choices.
Bias
Like any decision, trading decisions can fall prey to a set of
behavioural biases.
The bias' that are common to trade decisions include:
