Objective vs Subjective Trading-An Pham Investment-Market Sentiment
- Pham Family Magazine
- Feb 22, 2020
- 1 min read
Objective vs subjective trading: Most traders follow either an essentially objective or subjective trading style. Objective traders follow a set of rules to guide their trading decisions. They prefer to have buy and sell decisions essentially pre-planned. In contrast, subjective traders disavow using a strict set of rules, adapt to changing market conditions, and base their trading decisions more on their judgment regarding a specific trading opportunity.
Subjective traders are usually more vulnerable to falling prey to various behavioral finance biases or to being guided by emotion rather than reason in their trading decisions.
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