When it comes to success, it’s easy to think that people blessed with brains are inevitably going to leave the rest of us in the dust. But new research from Stanford University will change your mind (and your attitude).
Psychologist Carol Dweck has spent her entire career studying attitude and performance, and her latest study shows that your attitude is a better predictor of your success than your IQ.
Dweck found that people’s core attitudes fall into one of two categories: a fixed mindset or a growth mindset.
With a fixed mindset, you believe you are who you are and you cannot change. This creates problems when you’re challenged because anything that appears to be more than you can handle is bound to make you feel hopeless and overwhelmed.
People with a growth mindset believe that they can improve with effort. They outperform those with a fixed mindset, even when they have a lower IQ, because they embrace challenges, treating them as opportunities to learn something new.
Learning how market cycles operate can be extremely beneficial to your trading, understanding the true influence of fear and greed.
But... Controlling your emotions within the market is your main 'personal' objective, becoming an emotionless trader 90% of trading is pure psychology. It is the main reason why so many traders fail as they let their trading become over-ruled by their emotions, thus making irrational decisions.
Many traders will never overcome their inherent emotional biases, therefore you should seek to understand the range of emotions we may experience as investors and how it affects our interactions within the market.
1. Optimism: A positive outlook encourages us about the future, leading us to buy assets. 2. Excitement: Having seen some of our initial ideas work, we begin considering what our market success could allow us to accomplish. 3. Thrill: At this point, we investors cannot believe our success and begin to comment on how smart we are. …