Tag: cognitive bias in trading
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Trapped by Effort: How the Sunk Cost Effect in Trading Keeps You Stuck in Losing Positions
Don’t let past effort trap you in losing trades. Learn how the sunk cost effect in trading hurts Indian investors — and how to escape it smartly. Imagine this. You spent weeks analyzing a stock. You poured in time, money, and mental energy. Finally, you entered a position with 25% of your capital. But the…
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Why Some Numbers Matter in Trading—and Others Only Feel Like They Do
The Hidden Meaning Behind Market Numbers Discover why certain numbers in trading matter deeply—and how others are just illusions our mind creates. A must-read for Indian traders aged 30–45. “Sir, 18 ke baad voting rights milte hain. 21 ke baad daaru legal ho jata hai.”We’ve all heard this growing up. Certain numbers mark milestones in…
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In Hindsight, Everything Was Obvious: The Reality of Trading Psychology
Do you remember your first impressions of trading? Maybe it was that thrilling moment you opened your first demat account, watched candlesticks move in real-time, and thought — “I’ve got this!” You were confident. You believed ₹1,500 could snowball into a fortune. After all, the market rewards those who try, right? That’s where “trading psychology”…
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Why Most Traders Get It Wrong: Understanding the “False Consensus Effect” in Markets
You read the news—war tension rising, oil prices surging, hurricanes hitting major economies—and you’re convinced the market will crash. You sell your positions, expecting a bloodbath. But… the market rallies. Stocks bounce. And you’re left wondering: What just happened? This is not just a story of market misjudgment—it’s a psychological bias playing out in real-time.…