7 Strategies to Overcome Loss Aversion Bias in Day Trading
Jackson Capital
by Lepus Proprietary Trading
1M ago
Loss Aversion Bias Why is it that a trader can do well on Demo and then fall apart on Live. Or when they pass their prop firm challenge and then the spotlight is on them, they clam up, protect themselves, become extremely conservative, change strategy, etc and ultimately fail? What’s happening? And how do we overcome it? A bias stemming from prospect theory may be in play – Loss Aversion. Loss Aversion is a psychological and economic concept, which refers to how outcomes are interpreted as gains and losses where losses are subject to more sensitivity in people's responses compared to equiv ..read more
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"5 Considerations When Trading: Expectations vs Reality"
Jackson Capital
by Lepus Proprietary Trading
3M ago
This is an interview/conversation performed over Easter 2024 - if you are struggling this article is for you. - Trading can be very profitable but you need to have the right mind set and guidance. A conversation that I've had with a lot of other traders, and tend to keep having, is relating to expectations and how people are completely naïve about the reality of what this journey is going to look like. The False Idea Everyone is sold on this pumped-up idea of getting rich from trading, driven from social media and ads of these young kids sitting in front of a Ferrari or a Lamborghini. Or the ..read more
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"The Ultimate Guide to Understanding Wyckoff Strategy: Exploring and Identifying The Key Principles"
Jackson Capital
by Lepus Proprietary Trading
4M ago
The Wyckoff method is most commonly used in the stock market, but it can be utilised in the forex market also. In this post, I will go into detail about the method, why it works, and provide some examples on real charts. Background Richard Wyckoff, a trailblazer in the world of trading, left a lasting legacy through his pioneering work in technical analysis. One of his fundamental insights was the recognition that markets are subject to manipulation, leading to what he termed as the phases of 'accumulation' and 'distribution.' These concepts, central to his methodology, gave rise to the famous ..read more
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Exploring the Relationship Between Double Top/Bottom Patterns and Accumulation/ Distribution in Trading
Jackson Capital
by Lepus Proprietary Trading
4M ago
Full video based on this blog in our Discord Channel - #. Look for Free Video Training. Access Discord Invite Here https://www.lepusproprietarytrading.com.au/trader-coaching Look up: https://discord.com/channels/821991517987536897/1040034813865893990/1214152120539029524 This post talks about double-tops (DT), and double-bottoms (DB), two well-known and widely traded patterns. The simplest way to trade these patterns, is to take a position at the break of the neckline, with your stop above/below the support/resistance level and aim for an initial 1:1 as your target. However, most of the time ..read more
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Impact on Oil and Gold - Israel Palestine conflict
Jackson Capital
by Lepus Proprietary Trading
10M ago
https://youtu.be/IF0Wm_2MWXY Watch the first 10min References: https://www.bbc.com/news/business-67050612 https://www.bloomberg.com/news/articles/2023-10-09/israel-latest-over-1-100-dead-oil-soars-on-fears-of-proxy-war?srnd=premium-asia Over the weekend, a significant event unfolded, similar to the intervention with the Yen. While we have a good grasp of events scheduled on our calendar, such as the NFP on Friday, we don't know about unknown events, this one being geopolitical. (I've done a video on the YEN intervention on another blog.) For example, the current escalation of tensions between ..read more
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Known and Unknown - YEN intervention.
Jackson Capital
by Lepus Proprietary Trading
10M ago
  https://youtu.be/-ke5hkUOnyw?si=sMpjwRVL7M2O4YRR Just wanted to have a quick conversation around what's happened in the markets overnight. Wednesday 04-Oct-2023. The yen has a speculation of intervening and this is a great little topic for everybody. I'm not going to spend too much time on it, maybe five minutes. So watch this video. If you don't really use fundamentals in the market when you're trading, it is important that you, you understand. What's going on now? There's two types of fundamentals that are going on. Okay, there, the first one is, is the ones that are known. We know some, u ..read more
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What happens when you know you should but you don't
Jackson Capital
by Lepus Proprietary Trading
1y ago
Cognitive Dissonance – is the discomfort when a person’s belief or values conflict with behaviour or visa verse. Traders will experience this all the time because high performance trading (Profitable trading) occurs counter to normal human behaviour. We have all learnt from cavemen to modern human to take the good quickly and avoid risk. Dissonance causes a feeling of discomfort that motivates people to try to feel better. People may do this via defense mechanisms, such as avoidance. Alternatively, they may reduce cognitive dissonance by being mindful of their values and pursuing opportunities ..read more
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Insight to Hindsight - Be aware of it's limitations
Jackson Capital
by Lepus Proprietary Trading
1y ago
Here is an excerpt from an recent interview with Richard... Q. what’s your take on hindsight bias and hindsight. A. Problem with hindsight is that it can be damaging. When trading live, you don't know what's going to happen. You'll never know what's going to happen. It can go either way for as long as it wants to, and you have no idea of the outcome in a live environment. And the problem with that is, when looking back in the charts and seeing the trades from the previous day, even when you're trading on a trade simulator and you know what's already going to happen, it's very easy to get a pos ..read more
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Technical timing on S&P pull back
Jackson Capital
by Lepus Proprietary Trading
2y ago
1929, 1974, 1987, 2008, these are years of major market crashes that we may remember and the pro-traders know about and don't forget about all the in between dates too. 1997 tech crash and 2020 Virus for example. It is also commonly known that October is a period when a sell-off or pull back is traditionally witnessed. All these, which were not subject to a force majeure, happened in October. One would say it's the sell off before Thanks Giving or the end of summer. But it is certainly well known and a result of the a collective conscious that causes the timing. Have a look at the below chart ..read more
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Survivourship bias and Beginners Luck
Jackson Capital
by Lepus Proprietary Trading
2y ago
Why you should visit cemeteries: Survivourship bias Georg Soros, Larry Williams, Carolyn Boroden, we all want to be the trader who's written a book or is famous for being super rich. But let’s consider; what's the number of traders who fail? How many have come before us to not succeed or quit? Let’s have a look at some of those stats: 70% of traders blow their account in the first 3 months of trading, after 1 year this rises to 85%. We tend to succumb to the illusion of success and we mistake how small the probability really is. If you have lasted more than 3 months, then you start to exist i ..read more
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