Monday, May 28, 2012

Self-serving bias and trading

Accepting more responsibility for success than for failure, for good deeds than bad. 

This sums up the self-serving bias which we all face. One of the keys for determining the quality of a trader is whether there is a strong self-serving bias. It is almost impossible to be a good trader when having this bias. Ego is needed, but a candid skill assessment is more important.

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