We humans like to think of ourselves as self-governing, free-willed beings, set apart from other animals by our capacity to choose and to reason. Yet watch people (or even yourself) closely and you will find that we are more instinctual and a lot more like other animals than we care to think.

The other day, I was mentioning (to an otherwise smart and informed guy) that I really believe that trading psychology is the most important aspect of trading.

An interesting experiment was conducted in the 1950s by a scientist named Curt Richter. In that experiment, the man took a dozen domesticated rats and placed them into jars half filled with water.