Courses › Trading Psychology Blueprint: Rewire Your Mind for Success
Trading Probability Experiment
This lesson unlocks with CTI funding
The first three lessons of every course are open to everybody. The rest of the Academy comes with a CTI funded account.
41 more lessons in Trading Psychology Blueprint: Rewire Your Mind for Success are waiting, and every other CTI course with them.
- Any funded account, any size One step, two step, instant or direct funding. Whichever you buy, and whatever size you buy it at, the Academy opens.
- Every course, not just this one All four courses, every module, every quiz, and the certificates that come with finishing them.
- It stays yours Access does not expire and is not taken back if the funded account ends.
Already funded with CTI? Sign in
What this lesson covers
This lesson uses a simple experiment to show how differently people treat gains and losses, and why that matters at the screen. Offered a certain seven hundred dollars or a seventy five percent chance of a thousand, most people take the certain amount even though the second option is worth more on average. There is no wrong answer, but the pattern is revealing: people avoid risk when facing a gain, and take on more risk when facing a loss. That single asymmetry explains a great deal of trader behaviour, including cutting winners early and holding losers far too long. The lesson works through the experiment and its counterpart, then draws out what it means for the way you manage a position that is already open.