Cognitive Biases

Understanding biases that negatively affect trading decisions.

Part of Market Mindset & Psychology

What you will learn

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.

Lessons

Reading in order is recommended, but each lesson stands on its own.

10 min read
Intermediate

How Biases Compound Losses

An examination of how cognitive biases interact to magnify drawdowns, disrupt trading discipline, and erode long-run performance through compounding psychological effects rather than isolated mistakes. The article links core behavioral concepts to decision-making under uncertainty and illustrates these patterns with practical mindset-focused exampl…

12 min read
Intermediate

Common Cognitive Bias Mistakes

Cognitive biases are systematic thinking errors that distort how traders interpret information, manage risk, and evaluate results. This article explains the most common bias mistakes, why they matter under uncertainty, and how they undermine discipline and long‑term performance through realistic, mindset‑oriented examples.

12 min read
Intermediate

Biases and Risk Management

An in-depth explanation of how cognitive biases intersect with risk management, shaping discipline, risk perception, and decisions under uncertainty. The article uses practical examples to show how psychological tendencies can distort limits, monitoring, and judgment without prescribing strategies or recommendations.

12 min read
Intermediate

Debiasing Trading Decisions

An in-depth examination of how cognitive biases distort market judgment and how structured debiasing methods can improve trading discipline, decision quality, and long-term consistency without prescribing strategies or recommendations. Written for serious learners who want to strengthen process over impulse.

12 min read
Intermediate

Limits of Bias Awareness

An examination of why simply knowing about cognitive biases rarely eliminates them, and how this limitation shapes trading discipline, decision-making under uncertainty, and long-term performance. Includes practical, mindset-oriented examples drawn from market contexts.