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AVOID THESE Mistakes in Technical Analysis


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Rule #1 of investing is NOT make money, it’s don’t lose money  


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Mental accounting contributes to positive feedback. Thinking of money as if it belonged in separate accounts – which should be treated differently. Ex: Speculative account/money is for more speculation. Investment account is for long term. Treat speculative gains differently.  Self attribution: attributing successful results to our own ability (we take credit for positive outcomes), unsuccessful results attributed to “bad luck”.  Prospect theory: How investors value gains and losses differently. The  decisions they make under uncertainty explains how investors hold on to losers but sell profitable positions to avoid the pain of realizing a loss.  #TechnicalAnalysis


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Pause FinanceBy ElBlanco