Cognitive bias
Confirmation bias: finding the chart that agrees with you
Once you have a view, evidence stops being evidence. How the bias operates in chart analysis specifically, and the practical tests that catch it.
5 min read
Research / Tag
Cognitive bias
The mental shortcuts that distort a chart read before any emotion is involved.
7 articles
Tagged “Cognitive bias”
Cognitive bias
Cutting winners and holding losers: one habit, not two
They look like opposite errors. They come from the same source, they compound in the same direction, and one fix addresses both.
4 min read
Cognitive bias
Loss aversion: why losing hurts more than winning feels good
The asymmetry that makes traders cut winners early and hold losers long. Where it comes from, and the structural fixes that work better than trying to feel differently.
5 min read
Cognitive bias
Overconfidence: why winning streaks are dangerous
A run of wins feels like skill and is frequently luck. How outcome bias distorts self-assessment, and why the largest losses often follow the best weeks.
5 min read
Discipline
Process versus outcome: judging the part you control
A good trade can lose and a bad trade can win. Evaluating yourself on results teaches the wrong lessons — here is what to grade instead.
4 min read
Cognitive bias
Recency and availability: why the last three trades feel like the whole picture
Recent and vivid events dominate judgement out of proportion to their weight. What that does to strategy assessment, and the sample sizes that actually mean something.
4 min read
Trading journal
The trading journal: recording decisions, not just results
A list of profits and losses teaches almost nothing. What to record instead, and why the fields that matter are the ones written before the outcome is known.
4 min read
Related subjects
DisciplineRisk-rewardTrading emotionsPosition sizingTrading journalDrawdown