Successful trading is based mainly on trying to follow the right tradingplan. But even the most disciplined can be affected sometimes by certain humantendencies that can turn that around. There are certain human quirks that seemto affect trading but most traders don’t seem to be aware of. Here are some ofthem.

Fear Of the Unknown

It is a human tendency to feel fear about something that one doesn’t know.This may limit traders on making those calculated risks. Some may just stay ona certain comfort zone, maintain a position where they have an idea of what theresults may be. But this can also lead to missing out on valuable opportunitiesthat may be present at one time or another. It can sometime be an unfoundedfear that can seriously affect one’s trading success.

Information Bias

Some traders may not be aware of this, but information bias can also have aserious effect on trading. It is a tendency to accept only data and informationthat one likes to hear. Upon accepting this information, they seemed morebiased to it, even though it may be more of an opinion than fact. In theprocess, some traders may rely more on information based on opinions ratherthan the facts itself. This may cause a certain trading strategy to failbecause inputs used are not necessarily the real facts currently happening inthe market.

The Thrill Of Anticipation

It may not be that easy to understand this common human tendency since mostpeople go through it. Some may even call it daydreaming, but the thrill ofanticipation of a future event can also affect trading. Anticipating somethinggood that will happen is not always bad. But sometimes some people are moreexcited and relish the thrill of anticipation that they sometimes fail to actupon it and do something to make it a reality. In traders, anticipating toomuch rather than acting on it can certainly affect trading performance andsuccess. Money Finance – GuideTo.Com

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