Understanding biases that negatively affect trading decisions.
This scope is designed to help you build a practical understanding of Cognitive Biases. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
Recency bias is the tendency to give disproportionate weight to the most recent events when judging risks, forming expectations, or evaluating performance. In markets it distorts discipline, crowds out base-rate thinking, and can erode long-term results if left unchecked. This article explains the psychology behind recency effects, why they matter …
Confirmation bias is the tendency to seek, interpret, and remember information that supports an existing view while discounting evidence that challenges it. In markets, this bias can distort research, weaken discipline, and degrade long-term learning. This article explains how it arises, how it affects decisions under uncertainty, and how to build …
A clear, research-grounded examination of loss aversion, how it shapes behavior under uncertainty, and why it matters for trading discipline and long-term performance. Includes practical, mindset-focused examples without strategies or recommendations.
Cognitive biases are systematic patterns in judgment that arise from mental shortcuts, emotion, and limited information. This article defines the concept, shows why it matters in markets, and illustrates how biases affect trading discipline, decision-making under uncertainty, and long-term performance.
Anchoring bias is a cognitive shortcut that tethers judgments to an initial reference point. This article explains how anchors form, why they matter in markets, how they shape decisions under uncertainty, and what disciplined thinkers do to keep anchors from quietly steering long-term performance.
An in-depth explanation of hindsight bias, how it arises in human judgment, and why it distorts trading discipline, decision-making under uncertainty, and long-term performance evaluation. Practical examples illustrate the mindset challenges and safeguards that help maintain an evidence-based perspective.
A rigorous explanation of survivorship bias, why it matters in markets, how it distorts discipline and judgment under uncertainty, and practical examples that clarify its impact on long-term performance without offering investment advice or trade setups.
Availability bias is the tendency to judge likelihood and importance by what comes easily to mind. In markets, recent and vivid events often crowd out base rates, distorting risk perception, discipline, and long-run decision quality. This article explains the psychology, shows how it appears in trading contexts, and offers mindset-focused examples …
Market narratives help investors and traders make sense of complex information, but they also carry systematic cognitive biases. This article explains how those biases arise, how they shape discipline and decision-making under uncertainty, and why narrative awareness matters for long-term performance.
An in-depth explanation of how cognitive biases intensify during booms and crashes, shaping discipline, risk perception, and long-term investment behavior, with research-based examples and practical mindset insights for navigating uncertainty without suggesting trades.
