June 12, 2023 BY Alan Sayer

How Cognitive Biases Hamstring Effective Trading

Emotional decisions can lead to dire consequences, especially when trading. Impulsive buys and sells rarely stem from organised thought processes, and thus they can be compared to the haphazard spin of a slots reel. Trading psychology suggests people have three core responses when faced with challenges: flee, fight, or freeze. These knee-jerk reactions can prevent…

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