Trading Psychology: Confirmation Bias (Class 4)

Trading Psychology: Master Your Mind. Make Money is my free online class where I do a deep dive into all things trader psychology. We’ve been doing lots of learning about blind spots within our thinking process as humans. In the previous class we discussed intuitive and deliberative thinking. These concepts are important as they will show up in our discussion of confirmation bias. One of the most interesting (and impressive in a bad way) dynamics of confirmation bias is how you can think you are avoiding it, but you’re not. In fact, not only are you not avoiding it, you’re making it worse! That may not seem to make sense, but it goes to show how crazy our mind’s can be when we have certain desires. I’ve been coaching and working with traders for over 10 years now and confirmation bias is one of the most common issues I come across. Let’s be aware of it and better understand it so it does not deceive us within our trading performance!