By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Every trader has been told, at some point, to “just be rational.” Behavioural finance for traders exists precisely because that advice has never once worked. Standard financial theory assumes a version of the investor who doesn’t exist: someone who weighs every option with…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Thousands of nervous systems arriving at the same conclusion within minutes of each other — that’s what a crash actually is, not a market somehow failing. Market crash psychology rarely gets the headline. Every crash gets a different explanation instead — a rate decision,…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Four winning trades in a row don’t make the fifth one safer. Your brain disagrees, and it’s very convincing. Something shifts after a good week. Position sizes creep up. Setups that would have been passed over a month ago start looking obvious. Conviction…
By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer | thewealthmirror.com Selective evidence doesn’t feel selective from the inside — it feels like the chart finally making sense. There’s a particular feeling that arrives after taking a position: the chart starts looking different. This is confirmation bias in technical analysis at work — the…
By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer | thewealthmirror.com The analysis stopped supporting this position days ago. What’s actually keeping it open is the fact that closing it makes the loss final. There’s a specific kind of stillness that happens when sunk cost fallacy in trading behaviour takes hold — when a…
