Skip to content
Dunn To PerfectionFoundation

Trading Psychology · Module 2: Cognitive Biases · Lesson 2

Recency Bias

Beginner 6 minLesson 6 of 13

Learning objectives

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

The concept

Overweighting recent events when forecasting.

Why it matters

The last few trades or headlines feel more important than they are.

How markets interpret it

-chasing often reflects recency bias.

Key takeaways

  • Look at longer samples.

Knowledge check

Recency bias means…

Sign in free to mark lessons complete, save them, and track your progress.