Episode 17: The Psychology Behind Trading

Old Dog, New Tricks: The Psychology Behind Trading

In this engaging discussion, co-hosts Austin and John delve into the psychology behind trading, particularly focusing on cryptocurrency trading. They examine vital concepts such as confidence and conviction in trades, the scourge of trend chasing, and the effect of information overload in decision making. Drawing parallels with traditional financial markets, the duo offer insights on token dynamics, market volatility and the value of having consistent trading rules. The conversation also touched on the potential of emerging blockchain networks and the impact of the looming Bitcoin ETF launch. This is a must-watch for anyone keen to understand the emotional dynamics of trading and investment.

00:00 Introduction and Overview

00:05 The Psychology Behind Trading

01:25 The Concept of Overconfidence in Trading

03:53 The Impact of Information Quality and Timing

14:24 The Role of Regret in Trading Decisions

30:19 The Dangers of Trend Chasing

33:01 The Importance of Conviction in Trading

33:40 The Impact of Network Growth on Value

38:15 Conclusion and Final Thoughts