By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer | thewealthmirror.com Confirmation bias in technical analysis is unusual among the biases, in that the standard remedy for it is not merely ineffective. Under a live position it can make the problem worse. The remedy is familiar enough to recite. Seek disconfirming evidence. Argue the…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com The sunk cost fallacy in trading is the most frequently cited explanation for a position held too long, and it explains rather less of that behaviour than its popularity suggests. The definition is sound. The sunk cost fallacy is the tendency to continue…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Money mindset finance psychology rests on a claim that sounds obviously true and turns out, under examination, to be the weakest link in the whole field. The claim is that behaviour follows belief. Change what you believe about money — from scarcity to…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com The question what is trading psychology usually arrives from one specific moment, and it is rarely the loss itself. It is the moment afterwards, when you can explain exactly what you just did. You know it was revenge. You know the size was…
Loss aversion trading is one of the most expensive psychological patterns a trader can carry. Here’s what it actually is, how it shows up in your decisions, and how to work with it.
By Sofia Harchich | Trading Psychologist & Behavioural Finance writer | thewealthmirror.com Fear and greed in trading are described everywhere as two opposing forces, and the description is doing real damage to the people who act on it. The model is intuitive. One emotion makes you take too much risk, the other makes you take…
By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer | thewealthmirror.com Repeating trading mistakes produce a particular kind of private conclusion, and it usually arrives around the third or fourth time. The explanation changes each time. The first is bad luck. The second is carelessness. By the fourth, the explanation has quietly changed shape: it is…
Understanding the psychology behind revenge trading — and the only way out of the loop.
