Dopamine is a neuromodulator meaning that instead of conveying a specific sensory signal, it changes how the rest of the brain processes and responds to information. It is of two types — tonic and phasic. Tonic dopamine is the slow, steady baseline level of dopamine in synapses. It represents how willing
Imagine the following scenario: thousands of traders holding onto a position that is currently losing just because they believe enough people will do the same. This is a fairly common situation during a short squeeze. Most people would just say this is optimism and hope being shown by traders but
On March 23rd 2020, 12 days after WHO declared COVID-19 a global pandemic, the S&P 500 hit its pandemic bottom. The decline into a bear market was the fastest on record; It took only 22 trading days for the market to fall from its peak to its
When a trader is presented with a loss or a string of losses, instead of pausing or reducing exposure he might impulsively place trades to feel emotional relief and recover his money. He might even place larger bets than before to get back at the market but as most of