Which cognitive biases cost you most?

Confirmation bias, recency bias, anchoring, loss aversion — the bias list reads like a trader's loss history. Naming your personal bias profile is the beginning of defence.

Which cognitive biases cost you most? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

Which are yours?

  • the biases you catch yourself in
  • the trades they produced
  • the checks that counter them
Which cognitive biases cost you most? — risk-reward diagram
A risk-reward ratio of 1 to 2

The journal guide is the standard bias-detection tool.

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