SURPRISING SCIENTIFIC FACT ABOUT TRADINGBINANCE:BTCUSD
1. Three-quarters of dealers rated themselves above average, which is consistent with results from other psychological studies of overconfidence. Statistically, only 50% should have rated themselves as above average without the effect of overconfidence.
2. Dealers also overestimate their professional success, an effect known as the “better-than-average-effect”.
3. Trading experience eliminates the reluctance to realize losses.
4. Individual investors who think that their investment skills or past performance are above trade more frequently.
5. By examining over 400 traders with trading experience over 12 years at a bank, currency dealers show two types of overconfidence. They tend to overestimate the precision of their information and their personal competence.
6. The most senior traders are no less overconfident than their more junior colleagues.
7. In theory, irrational traders will be driven out of asset markets by trading losses. However, the examination of 400 experienced traders indicates that overconfident currency traders are not driven out of the market despite losses.
8. Overconfidence among foreign exchange dealers could affect equilibrium exchange rates.
9. Chinese investors make trading mistakes (selling winners and hold on to losers), they are reluctant to realize their losses, they tend to be under-diversified, they seem to trade often and they show a representativeness bias.
10. Middle-aged investors, active investors, wealthier investors, experienced investors and those living in urban cities are often unable to overcome behavioral biases.
11. Investors who were successful before trading online believed that their successes are due to their own investment abilities and become overconfident. Once individuals start trading online, investors have access to vast amount of data which can lead to the illusion of knowledge. Furthermore, managing their own trades by the click of a mouse leads to the illusion of control. All of these factors lead to increased overconfidence.
12. The response of exchange rates to stop-loss orders is larger, and lasts longer, than the response to take-profit orders.
13. Stop-loss orders are sometimes triggered in waves.
14. The reversal frequency at round numbers is greater than the reversal frequency at arbitrary price levels in 79% of examined 10 day periods.
15. Exchange rates trend faster after crossing round numbers which suggest that stop-loss orders propagate trends.
16. Large stop-loss orders are tightly clustered near rates ending in 00. In contrast, very large take-profit orders are not clustered.
17. Adding technical analysis, like moving averages to investment rules, can outperform other trading strategies.
18. Significant excess returns are possible using technical analysis in foreign exchange markets.
19. Technical trading rules exist for NASDAQ Composite and Russell 2000 but not for DJIA and S&P 500. Rules of technical analysis even generate significant profits and improve unprofitable trading rules.
20. Technical trading profits have gradually declined over time in 12 futures markets.
21. Stock prices temporarily rise following widely talked about events before reversing to pre-event levels over the next five days. On average, individuals lose 0.88% when prices reverse. 10
22. Attention-grabbing events lead active individual investors to be net buyers of stocks.
23. Individual investors who currently hold a company’s share, sell as prices increase during upper price limit events.
24. Individual investors are more likely to trade an S&P 500 index stock after an earnings announcement if that announcement was covered in the investor’s local newspaper.
25. The presence or absence of local media coverage is strongly related to the probability and magnitude of local trading.
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Scientific
TMO - Thermo Fisher - Daily Technical SetupTMO - Thermo Fisher - Daily Technical Setup
TMO
ENTRY = 450 - 455
Cost Avg Down = 420
1st Target = 485
2nd Target = 513
Hodl Target = New Highs
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This content is for informational, educational and entertainment purposes only. This is not in any way, shape or form financial or trading advice.
Good luck, happy trading and stay chill,
2degreez
oversold ESG play DNMR; go long. biodegradable plasticsThey are currently partnered with Pepsico and the University of Georgia working on fully biodegradable plastics; with Nestle and Walmart already signing on as customers. Got caught up in the SPAC sell-off. Doubtful it drops further so now would be a good time to initiate a long position. One strategy would be to buy half now than wait for a few trading sessions to see how it fares.
Oversold based on RSI with a bullish MACD cross on the horizon. Besides carbon emissions, plastics are another significant source of climate change and DNMR is a great way for fortune 500 companies to counteract their footprint and appease shareholders/board members on the ESG front.
MKSI: Longer bottom completed and moving with momentumMKSI worked on a longer-term bottom formation that is completed and moving up with momentum at this time. The consolidations of the past two 1-day runs are very precise and horizontal. These candlestick patterns offered excellent low-risk entries. The stock has an all-time high around $128, so ample room to move up further. It has also completed a near perfect V Trough formation on the long-term cycle indicator chart. Currently price is controlled by professional technical traders.