Hindsight bias is believing, after an event, that you saw it coming all along when you did not. In trading it quietly rewrites your memory of calls.
Understand behavioral science and psychology to boost your consistency and results!
Trading Psychology
Understand behavioral science and psychology to boost your consistency and results!
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Loss aversion is feeling a loss about twice as strongly as an equal gain. See how this bias skews your trading decisions and what you can do to fix it.
Confirmation bias is trusting information that backs what you already believe and ignoring the rest. Here is why it hurts traders and how to beat it.
Endowment bias is valuing something more simply because you own it. It keeps traders in losing positions too long. See how to spot it in your own trading.
Optimism bias is overestimating good outcomes and underestimating bad ones. In trading, it makes you believe losses only happen to other people.