Tag: false consensus effect
-
Why every Indian trader must learn to think beyond headlines, emotions, and herd behavior
You’re sitting with your chai, scrolling through the news. Headlines scream—“Oil Prices Surge!”, “Fed Expected to Hike Rates Again!”, “Housing Slump May Trigger Recession!”—and before you know it, you feel a knot in your stomach. You start second-guessing your trades, exiting too early or entering too late. If you’re a stock market learner in India,…
-
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.…