How Prospect Theory and Hyperbolic Discounting Lead to Trading Losses // Ep. 92 - Think Profit Podcast

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In This Episode

Why a new trading strategy usually looks better than it is
Jesse Livermore‘s #1 key to success
Why you can go broke taking a profit

What is Prospect Theory in Trading?

This is a term that isn't widely talked about in trading, but understanding it is essential to improving your trading skills.

Also learn about a related term called hyperbolic discounting. Prospect theory causes you to get into bad trades, while hyperbolic discounting causes you to get out of good trades too early.

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Find out how to prevent these issues.

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About Hugh Kimura

Hi, I'm a co-host of the podcast, independent trader and founder of TradingHeroes.com. Take a look at all of our episodes to find the tutorials that you're looking for.

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