I wrote an article on Impulse Trading. Maybe it can help some folks. In my totally biased opinion I think it's pretty original. It's on my blog here: http://blog.tufftrade.com/2008/12/29/beast.aspx I would appreciate all comments, both positive & negative. Best Regards, Miracletech blog.TuffTrade.com
Interesting perspective. Though I am in no way an expert on psychology, from personal experience I believe that the urge to impulse trade has similarities to urges to engage in other self-destructive activities. The tricky part, as you point out, is to catch yourself before engaging in these activities. Easier said than done! JEB
I just wrote a followup to my first article on Impulse Trading. It's on my blog here: http://blog.tufftrade.com/2009/01/03/beast-part-2.aspx Good trading to all, Miracletech
Impulse trading is basically the inability to recognize a faulty trading method. If out of 20 trades using a strategy you lose money you will most likely lose money with 500 trades using the same strategy. Impulse traders who recognize that they keep doing it shouldn't even think about buying and selling a stock or anything else within the same day.