Episode #2 - Leveraging Uncertainty

01/03/2025 30 min Temporada 1 Episodio 2

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Episode Synopsis

Uncertainty is the only constant in trading—so why does it feel so dangerous?In this episode of Risk On, we dive deep into the psychology of risk and explore why our brains are hardwired to fear the unknown. We break down: The science behind uncertainty aversion and why your brain treats market fluctuations like life-or-death situations. The Ellsberg Paradox—how traders unknowingly reject profitable opportunities because of ambiguity bias. The hidden ways fear of uncertainty manifests in trading—hesitation, overtrading, cutting winners too soon, and holding onto losers. How to rewire your mindset to stop reacting emotionally and start making probability-based decisions.By the end of this episode, you’ll walk away with a practical tool—The Uncertainty Reframe—to help you train your mind to operate effectively in uncertainty, just like the best traders do.Want to stop second-guessing yourself and start executing with confidence? This episode is for you.Please check out Rande Howell's website tradersstateofmind.com it is an absolute must to scour. Lots of info to sink your teeth into. Link Below. He also has a book called 'Mindful Trading'. https://tradersstateofmind.comPick up the uncertainty algorithm and table, as well as a mentioned paper on bias expectancies by Daniel Grupe and Jack Nitschke in this link below.https://we.tl/t-rgsm4r59n3