Transcript of the podcast:
After you listen
Most people buy a stock because they think it'll be a good investment. Nobody does so planning to lose money. But how exactly do you expect this particular stock or trade to make a profit for you? Do you have a trading plan? Most importantly, how will you guard against your own cognitive and emotional biases while trading?
It's a widely held belief that to succeed as a trader, you must learn to control your emotions. But humans are emotional beings, so that's easier said than done. To address how several biases impact trading decisions, Mark Riepe interviews Randy Frederick. Randy is vice president of trading and derivatives at the Schwab Center for Financial Research. He and Mark discuss a variety of strategies to help mitigate our biases while trading.
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