Mastering the Trading Mindset: How to Profit from Human Cognitive Bias

Uncovering the Hidden Weakness in Human DNA

Cognitive dissonance is a powerful psychological phenomenon that can distort our thinking and perception, often to the detriment of our trading performance. As traders, we have an innate drive to profit from the markets. We dedicate time to learning new strategies, closely monitor market movements, refine our tactics, and establish strict rules for entry and exit. Despite our best efforts, we all face losses — sometimes significant ones that challenge our core beliefs.