Optimism Bias – Why Most People Think They Can Beat the Market

Optimism Bias in Trading: Why You Think You're a Better Trader Than You Are Last updated: 2026-06-14 · By Spencer Li, CFTeOptimism bias is the tendency to overestimate the chance of good outcomes and underestimate the chance of bad ones,…
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Conservatism Bias – Are You Afraid of Change?

Conservatism Bias in Trading: Why You Under-React to New Information Last updated: 3 July 2026 · By Spencer Li, CFTeConservatism bias is the tendency to cling to your prior view or forecast and under-react to new information that contradicts…
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Self-Attribution Bias – Don’t Confuse Brains With a Bull Market!

Self-Attribution Bias in Trading: Why You Think You're Better Than You Are Last updated: 3 July 2026 · By Spencer Li, CFTeSelf-attribution bias is the tendency to credit your wins to your own skill while blaming your losses on bad luck, the…
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Representativeness Bias – The Dangers of a Small Sample Size

In order to derive meaning from life experiences, people have developed an innate propensity for classifying objects and thoughts. When they confront a new phenomenon that is inconsistent with any of their preconstructed classifications, they…
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Cognitive Dissonance Bias – This Can’t Be True!

Cognitive Dissonance in Trading: Why You Refuse to Cut a Losing Trade Last updated: 3 July 2026 · By Spencer Li, CFTeCognitive dissonance is the mental discomfort you feel when new information contradicts a position you already hold, and…
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