Trading is a game of psychology from "summary" of Reminiscences of a Stock Operator by Edwin Lefevre
Trading, my dear boy, is not a game for the stupid. It is a game of psychology, played by men and women who have an understanding of human nature. The successful trader is not the one with the most knowledge of financial markets or the highest IQ. No, the successful trader is the one who can control his emotions and make rational decisions in the face of uncertainty. When I first started trading, I thought it was all about buying low and selling high. I soon learned that it was much more than that. It was about understanding the motivations of other traders, about predicting their next move based on their emotional state. It was about exploiting the weaknesses of others while keeping a cool head yourself. The key to successful trading, my boy, is to understand that the market is driven by fear and greed. When fear grips the market, prices plummet as traders rush to sell th...
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