Anchoring: what prices are you stuck on?

The entry price anchors the mind: "I'll exit at breakeven", "I'll sell when it gets back to 1.1000". The anchor is arbitrary and the market doesn't care, but the attachment is real.

Anchoring: what prices are you stuck on? — support and resistance diagram
Price bouncing between support and resistance

What's your anchor?

  • the price you keep returning to
  • how it distorts your decisions
  • how you cut the line
Anchoring: what prices are you stuck on? — central bank rate path diagram
A central bank's policy rate path across recent meetings

The support and resistance guide replaces personal anchors with structural ones.

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