Rationality in trading is the ability to make choices that will result in the best possible outcome given the information available. Rational decisions aim to maximise an advantage, while minimising any losses. Although rationality is all about seeking the optimal outcome, studies have been quick to point out that this doesn't always mean making money – a rational decision can involve minimising losses and even accepting a loss.

<p>Rationality in trading is the ability to make choices that will result in the best possible outcome given the information available. Rational decisions aim to maximise an advantage, while minimising any losses. Although rationality is all about seeking the optimal outcome, studies have been quick to point out that this doesn't always mean making money – a rational decision can involve minimising losses and even accepting a loss.</p>

When it comes to investing or trading, your mindset is one of the most important things that play a part. How does psychology impact trading? Discover the factors that can influence financial decisions – personality, emotions and moods, biases and social pressures. We unpack these in this series, Trading Psychology, brought to you by IG.

<p>When it comes to investing or trading, your mindset is one of the most important things that play a part. How does psychology impact trading? Discover the factors that can influence financial decisions – personality, emotions and moods, biases and social pressures. We unpack these in this series, Trading Psychology, brought to you by IG.</p>

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