The Psychology of Algorithmic Trading and Retail Investor Decision-Making
Here’s the deal: the stock market is no longer just a battle of wits between humans. It’s a clash of mindsets. On one side, you have the cold, calculating logic of algorithmic trading systems. On the other, the messy, emotional, and often contradictory psychology of the retail investor. Understanding this tension isn’t just academic—it’s the key to navigating today’s markets without getting steamrolled. The Algorithmic Mind: Speed, Discipline, and No Feelings Let’s dive in. Algorithmic trading, or algo-trading, is basically a set of instructions—a recipe—executed by a computer. Its psychology…
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