5/01/2022

Mental framework or mental models drive our actions


In any field you have a mental model of how that field works.

Mental models are simplification of world arounds us and consists of our belief about how it works

Some traders have a menial model , everyone is out to screw them and manipulate their positions or stops

Some traders have a mental model, day traders never make money

Support and resistance is a simplistic mental model

Growth investing is a mental model

Value investing is mental models

Mental models are like religious beliefs , once you imbibed a mental model you get trapped in that thinking to avoid cognitive dissonance

Trading related mental model determine your trading style , timeframes, your profits.

Build an opportunistics , all weather , low drawdowns mental models for your trading

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