Do Traders Feel the Market? A Skin Conductance Study
MIT researchers wired 10 professional traders during live work. What their skin and heart responded to, and why experience seemed to change it.
#behavioral-finance
3 articles
Gambler's Fallacy in Trading: Why Streaks Feel Due to End
Why after five red candles a bounce feels due: the gambler's fallacy and the hot-hand belief in the Rabin and Vayanos model, with the coin-flip data.
Why Prop Firm Rules Push Traders to Take Big Risks
A profit target, a loss floor and a sunk fee change how people take risk. What Thaler–Johnson and Chevalier–Ellison found, and what it means for you.