13 Cognitive Biases to be aware of by traders and investors

Here are 12 Cognitive Biases that prevent human beings from behaving rationally.  As perception is reality in the financial markets, I thought it might be useful to address those issues through the lens of a trader. 1. Confirmation Bias This is a fatal flaw of trading; we tend to surround ourselves with information that validates our own point of view and dismiss input that conflicts with our reasoning (also known as cognitive dissonance). ...