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• Evaluate Your Risk by Simon Vine

  ARTICLE SYNOPSIS ...Evaluate Your Risk by Simone Vine To accurately determine risk, you must filter classical statistical factors. How, you ask? With a personal risk profile. In classical statistics, risk is defined as the standard deviation from the mean. To some extent, this basic concept governs the minds of most decisionmakers, including investors: A decision in a given situation carries a risk equal to the deviation from the average person's decision. Of course, it is anybody's guess as to what the average person's decision might be, so you cannot be certain how far away you are from the average. Thus, the...

AUTHOR: Simon VineDATE: OCT 2002SUBJECT: Trading Psychology

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• How Do You Make A Trading Decision by Simon Vine

  ARTICLE SYNOPSIS ...How Do You Make A Trading Decision by Simon Vine What goes into making a decision about a trade? Whenever you make a trading decision, you base your choices on particular outlooks regarding market developments. Although a predicted scenario at a specific moment may seem very likely, events rarely occur in the way or at the time we expect. How does the passage of time transform your outlook? TIME FACTOR IN RISK EVALUATION Suppose you place a straight stick in a pool of water. Once submerged, the stick appears to be bent. The water acts as a prism through which you observe the familiar objec...

AUTHOR: Simon VineDATE: NOV 2002SUBJECT: Trading Psychology