Risk warning CFDs are complex instruments. 74–89% of retail investor accounts lose money when trading CFDs.

Module 11 — Trading Psychology and Behavioral Finance

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About Course

Module 11 is mandatory. Its 28 lessons are built mainly on Mark Douglas’s Trading in the Zone (2000) and Edwin Lefèvre’s Reminiscences of a Stock Operator (1923). The behavioural-finance research comes from Kahneman and Tversky (prospect theory), Odean (the disposition effect) and Barber and Odean (overtrading and overconfidence). Douglas is in copyright, so his ideas are paraphrased, with very short quotes and chapter references.

Level: Essential · Before this: Module 9 · Tool: a trading journal (template in Lesson 11.19).

Course Content

Part 1 — Emotions

  • Lesson 11.1 — Why trading psychology matters
  • Lesson 11.2 — Fear
  • Lesson 11.3 — Greed and excessive risk
  • Lesson 11.4 — FOMO (fear of missing out)
  • Lesson 11.5 — Revenge trading
  • Lesson 11.6 — Tilt
  • Lesson 11.7 — Overtrading

Part 2 — Cognitive biases

Part 3 — Outcomes vs decisions

Part 4 — Tools and routines

Module quiz and sources

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