Psychological Bias – 3. confirmation bias
Confirmation bias, also called as confirmatory bias is one of the most common among traders. When a trader has made a decision, even if it is not best decision, trader will try to find information that will support your decision they have made. Problem in doing this is that you will actually not improve your trading skills but just keep making the same mistakes. Best scenario is that trader will lose their precious time. However, the worst scenario is that trader will lose not only time, but also money and motivation in trading.