Traders are human beings and naturally we will have cognitive bias. Being biased is not fatal but it will prevent you from become a successful trader.
Although we cannot entirely remove our bias, however we can reduce it's effects.
Here is my practical ways to reduce cognitive bias on my trading:
1) Have detailed trading rules and the discipline to follow them.
2) Record and review my trades and emotions.
Here's my typical thought process. I executed a long position. Thus I naturally have a bias that the market will go up.
Then,later it had shown a weakening uptrend. If I don't have detailed trading rule, I'll refuse to cut losses and find excuses to hold onto losing trades. As result, I will burn away a huge chunk of money on a losing trade.
Therefore, a detailed trading rules give me great trading accountability and reduce my bias effect. I will already have a ready plan to react to whatever market conditions, so that i can find money making opportunities and well minimize potential losses.
Trade Well my friends
To follow our Youtube channel: Click here.
Our FB Page: Click here.
Our Instagram page: Click here.
Created by davidleetgydotcom | Apr 08, 2019
Created by davidleetgydotcom | Apr 01, 2019
Created by davidleetgydotcom | Mar 26, 2019
Created by davidleetgydotcom | Mar 19, 2019
Created by davidleetgydotcom | Dec 03, 2018