Psychological biases play a significant role in shaping trading decisions, and one such bias that demands scrutiny is confirmation bias. Confirmation bias refers to the tendency of individuals to seek out, interpret, and emphasize information that supports their existing beliefs or preconceptions while ignoring contradictory evidence. In the forex...
Confirmation bias is a self defeating attempt to impose one's own bias on the market. This most often results in pre-trade chart blindness. When we analyze the market with a preset bias, we will only see confluences, patterns, price action, and setups that confirm our bias. This is the human flaw of needing to be correct. The need to be correct will cause traders...
🏛As traders, we are constantly bombarded with information on the global economic landscape, market trends, and potential investments. With so much information at our fingertips, it is easy to fall victim to a cognitive bias known as confirmation bias. 🏛Confirmation bias, also known as selective perception, is the tendency for individuals to seek out and...
In this educational article, we will discuss one of the most common cognitive errors of newbie traders - a confirmation bias. In order to better understand that term, I want to start with the example: Let's say that after doing some research, you are highly convinced that Bitcoin is bullish and that it is a decent investment. You decide to buy that from...