Our brain is wired with cognitive biases that make you overconfident, stubborn, and sometimes just plain dumb with money.
1. Confirmation Bias
You think a stock will go up, so you only read tweets and articles that agree with you. Bad news? You ignore it. Result? You hold a loser for way too long.
2. Hindsight Bias
Made a good trade? You convince yourself you saw it coming. Blew up your account? You blame the market. This false confidence leads to reckless moves.
3. Recency Bias
Market crashed yesterday? You think it’ll keep crashing. Stock pumped last week? You believe it’ll moon forever. You forget the big picture and make dumb trades based on recent events.
4. Herd Mentality
Everyone’s buying some random stock, so you do too. It spikes, then dumps. Now you’re holding bags, wondering what went wrong.
5. Loss Aversion
You’d rather watch a stock bleed your account dry than sell for a small loss. Meanwhile, you take tiny profits way too soon.
6. Overconfidence
A few good trades and suddenly you think you’ve cracked the market. You start betting big and you loose it all.
The best thing to do is, we have to admit that we made a dumb decision. Accept that biases exist. We should have a trading plan and always a second opinion. Maybe, talk to traders who will challenge your views. Writing down your mistakes makes you less likely to repeat them.
Nice read 
