Regret-aversion bias

The regret-aversion bias is related to another emotional bias we have discussed recently, i.e., the loss-aversion bias.Have you ever avoided to make a decision out of fear that it will turn out to be a bad decision? Yes? Then you are a victim of the regret-aversion...

Self-control bias

The topic this time is the self-control bias, that like the loss-aversion bias belongs to the emotional biases category.The self-control bias identifies a situation where people cannot achieve their long-term goals for a lack of self-discipline. The classic example is...

Loss-aversion bias

In this article we discuss the loss-aversion bias, that can be quite dangerous in trading. If you remember the previous article about behavioral biases, we defined two categories, i.e., emotional biases and cognitive errors. The loss-aversion bias belongs to the first...

Behavioral biases

What are behavioral biases? Simply stated, it is a behavior that can lead to wrong decisions. As you can realize, this is very important in trading, because wrong decisions means losing money. So how can we identify behavioral biases, and how to address them? First...

Support and resistance

What are support and resistance (S/R)? In technical analysis (i.e., the study of the charts), they are very important levels where the price is more likely to “bounce”. A support is a zone that the price may hit from above and then bounce up. A resistance...