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Dunn To PerfectionFoundation

Trading Psychology · Module 2: Cognitive Biases · Lesson 3

Confirmation Bias

Beginner 6 minLesson 7 of 13

Learning objectives

  • Explain confirmation bias in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Seeking information that supports what you already believe.

Why it matters

It hides warning signs.

How markets interpret it

Echo chambers online reinforce it.

Key takeaways

  • Actively seek the opposite view.

Knowledge check

To counter confirmation bias you should…

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