Endowment Bias in Trading: Why You Hold Losing Positions Too Long Last updated: 2 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 […]
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” […]
Conservatism Bias in Trading: Why You Under-React to New Information Last updated: 8 September 2026 · By Spencer Li, CFTe Conservatism bias is the tendency to cling to your prior view or forecast and under-react to new information that contradicts it. In trading, it shows up when fresh data lands, say an earnings miss that […]
Self-Attribution Bias in Trading: Why You Think You’re Better Than You Are Last updated: 11 July 2026 · By Spencer Li, CFTe Self-attribution bias is the tendency to credit your wins to your own skill while blaming your losses on bad luck, the broker, the platform, or the news. In trading it is dangerous for […]
Leonardo Da Vinci once said that simplicity is the ultimate sophistication. Let’s take a moment to ponder that. This applies to research analysis as well. When you hear people talking about some sophisticated trading system or some flashy indicators or some complex wave projections, think again. It is more likely to be smoke and mirrors. […]