Psych Hack #0007 - decision-making - it's what we do.

Everybody - I mean everybody - who is actively trading has to make decisions. Entry points, exit points, trailing stops, stop-losses and so on - they all involve decisions. But what affects the integrity of our decision-making? Some say we don't need to make decisions, once we follow a mechanical trading plan. I disagree 100%. If everybody could follow a mechanical trading plan and be millionaires it would have happened already - it ain't happening! End of.

I say that our decisions are made in our heads - our brains, our minds. I say that I (we) need to know about the pitfalls in decision-making - pitfalls that may affect our minds.

I'm sharing some things I've learned with others. These may not be of relevance to everybody. However, as the hard evidence shows that between 75 and 90% of all traders lose money consistently, I think it should be of relevance to a majority.

Declaration: None of this is advice - even if so construed. Opinions on the two charts shown are not be relied upon. Your losses are entirely your own.