What Is Confirmation Bias in Trading (and How to Beat It)? Last updated: 2026-06-14 · By Spencer Li, CFTe Confirmation bias is the tendency to notice and trust information that supports what you already believe, while ignoring or explaining away anything that contradicts it. In trading, it is dangerous because a trader who has already […]
Endowment Bias in Trading: Why You Hold Losing Positions Too Long Last updated: 3 July 2026 · By Spencer Li, CFTe Endowment bias (a behavioral-finance term for valuing something more simply because you own it) is what makes traders hold losing positions far longer than they should. Standard economics says the price you would pay […]
Long-term refinancing operations (LTROs) involve the central bank lending money at a very low interest rates to eurozone banks, which has led to the term “free money.” The injection of this cheap money means that banks can use it to buy higher-yielding assets and make profits, or to lend more money to businesses and consumers […]
Optimism Bias in Trading: Why You Think You’re a Better Trader Than You Are Last updated: 2026-06-14 · By Spencer Li, CFTe Optimism bias is the tendency to overestimate the chance of good outcomes and underestimate the chance of bad ones, and in trading it shows up as believing the losses that hit “other people” […]
