By Spencer Li, CFTe · Last updated: 26 October 2026 Representativeness bias is the habit of judging how likely something is by how much it looks like a pattern you already know, instead of by the actual numbers. In trading, the version that costs the most is sample-size neglect, also called the law of small […]
Cognitive Dissonance in Trading: Why You Refuse to Cut a Losing Trade Last updated: 26 August 2026 · By Spencer Li, CFTe Cognitive dissonance is the mental discomfort you feel when new information contradicts a position you already hold, and in trading it is the bias that keeps you in a losing trade long after […]
One aspect of market analysis is statistical analysis, which is using statistics to find correlations and patterns, where opportunities of skewed probabilities may lurk, giving you an edge over the market in the long run. For investors, this lets you know the best month to start building your portfolio, or to rebalance/adjust your portfolio allocation. Seasonality […]
Chart reading is not only for short-term traders. Investors can use long-term trend-following rules too, not to beat buy-and-hold every year, but to have a rule for stepping aside when a long decline sets in.
By Spencer Li, CFTe · Last updated: 26 October 2026 You do not need indicators to trade well, and the trap most beginners fall into is treating one as a signal that tells them when to buy or sell. Every indicator is a calculation made from the same five numbers already on your chart, which […]